Why Peloton Stock Zoomed More Than 17% Higher Last Month

Peloton Interactive's stock surged over 17% in May 2026 following its return to profitability in Q3 FY2026, posting $26 million in net income versus a $48 million loss year-over-year. The company achieved modest 1% revenue growth to $631 million and raised full-year guidance. Additional support came from inclusion in the S&P SmallCap 600 index. However, connected fitness subscriptions declined nearly 8% to 2.66 million, raising concerns about business sustainability.