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Peloton Announces Job Cuts and Strong 2026 Revenue Forecast, Shares Jump Over 11%

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Peloton Interactive has announced plans to cut 6% of its global workforce as part of ongoing cost-saving measures amid its turnaround effort. The exercise bike maker also forecasted its 2026 revenue to exceed expectations, contributing to an 11% rise in its shares.

The company reported a surprise profit in the fourth quarter, posting 5 cents per share compared to analysts’ predicted loss of 6 cents. Quarterly revenue reached $606.9 million, surpassing the anticipated $579.8 million.

Peloton’s CEO, Peter Stern, who joined in January from Ford Motor, initiated the turnaround after a sales slump of the company’s high-end bikes and treadmills following the COVID lockdown surge. The company’s efforts have already reduced operating expenses by 20% and general and administrative expenses by 33% year-over-year.

To offset rising costs from tariffs imposed by the Trump administration, Peloton plans to “adjust prices.” These tariffs are expected to reduce its 2026 free cash flow by $65 million. Additionally, planned layoffs, office relocations, and indirect cost reductions are projected to save an extra $100 million by the end of the next fiscal year. About half of these savings have already been realized through workforce reductions.

Peloton forecasted 2026 revenue between $2.4 billion and $2.5 billion, surpassing analyst estimates of $2.41 billion. The gross margin on its connected fitness products increased by 9 percentage points to 17.3%, with gross profit nearly doubling to $34.4 million.

Intel Shares Surge 14% Following Appointment of New CEO Lip-Bu Tan

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Shares of Intel surged nearly 14% on Thursday, following the announcement that Lip-Bu Tan, former board member, has been appointed as the new CEO. Tan, who had left the company in August due to differences over its direction, is now tasked with revitalizing the chipmaker, which has faced several years of underperformance in the market.

Intel has struggled to capitalize on the artificial intelligence-driven semiconductor boom, having lost market share in the data center and PC markets while facing significant losses in its manufacturing division. Over the past five years, the company’s stock has dropped about 60%, underperforming the broader market, with the Nasdaq and S&P 500 more than doubling in that period.

Analysts are optimistic about Tan’s appointment, citing his extensive relationships within the chip ecosystem, which could help bring customers to Intel’s contract manufacturing business. TD Cowen analysts noted that Tan’s deep connections in the industry made his appointment the best possible option for stakeholders. Tan will officially take over next week, just three months after Intel ousted Pat Gelsinger as CEO.

Tan had been on Intel’s board for two years, where he helped strategize the company’s turnaround. His departure in August was due to disagreements over workforce size and company culture, but his return brings renewed hope. Despite recent skepticism about Intel’s future, analysts expect Tan to continue the approach set by Gelsinger, focusing on keeping chip design and manufacturing together. Tan also expressed a goal to make Intel a leading foundry, a term used for companies that contract out chip manufacturing.

Despite his strong track record at Cadence Design Systems, where he led a decade of growth, analysts caution that a turnaround at Intel will take time. The company’s market value has struggled to surpass $100 billion for the first time in three decades, and Intel’s AI chip business has failed to meet sales targets. However, analysts remain hopeful, with some believing that Tan’s previous tenure at Intel will provide him with a deep understanding of the company’s challenges.

Still, analysts remain divided, with many holding a “hold” rating on Intel’s stock, as the company continues to face challenges, including stiff competition from rivals like Broadcom and TSMC. Experts like Dan Morgan, senior portfolio manager at Synovus Trust, believe Intel may still require a strong partnership to successfully navigate its foundry business and return to profitability.