Canaccord Genuity has maintained its Buy recommendation and a $10.00 price target on Peloton Interactive (NASDAQ:PTON) in the wake of the company’s fiscal second-quarter 2026 report, released on February 5.
Peloton reported quarterly revenue of $656.5 million, a 2.6% decline from the prior-year period. That result came in below analyst estimates of $675.6 million and just beneath the company’s own guidance range of $665 million to $685 million.
On the subscriber front, Peloton recorded 2.661 million active subscribers, down 7.6% year-over-year. The subscriber total landed toward the higher end of management’s guidance range of 2.64 million to 2.67 million. Company commentary indicated improved retention among established customers, offset by weaker-than-expected gross additions, a shortfall the company partially attributed to softer third-party equipment sales.
Management described consumer demand as distributed in a "barbell" pattern, with new buyers clustering at the extremes of the product lineup - either purchasing premium equipment such as the Tread and Tread+ or opting for lower-priced refurbished bikes. The company also observed that fewer existing customers upgraded within the same product category, although some existing users did switch to different types of Peloton equipment.
Canaccord’s assessment highlighted that while Peloton retains a loyal subscriber base, the company is still struggling to convert new prospects into purchasers of large-ticket hardware, despite the launch of the Peloton IQ offering. The firm pointed to meaningful profitability improvements at the company, noting that those gains provide additional time for Peloton to attempt to rebuild growth momentum.
Other broker reactions and financial details followed the earnings release. Peloton posted a loss of $0.09 per share for the quarter, wider than the expected loss of $0.05 per share. Revenue for the quarter was $656.5 million, missing the consensus estimate of $675.45 million and declining from $673.9 million in the same quarter a year earlier.
In response to the results, BofA Securities trimmed its price target on Peloton to $7.50 from $9.00 but left its Buy rating intact. Analysts attributed the revenue shortfall to weaker-than-expected hardware sales and delays in delivery times.
Telsey Advisory Group also cut its price target, lowering it to $6.00 from $8.00 while maintaining a Market Perform rating. That move followed a notable 26% drop in Peloton’s share price; Telsey described the decline as "too severe," even as it continued to flag ongoing growth challenges.
Collectively, these updates underscore a mix of operational and demand-side headwinds for Peloton: hardware sales and delivery execution have weighed on near-term revenue, while improved profitability provides some buffer as the company tries to shore up new-customer acquisition and larger-ticket purchases.