Peloton Interactive, Inc. ( PTON ) shares are trading higher Thursday after the company reported better-than-expected third-quarter revenue results.

Peloton stock is surging to new heights today. What’s driving PTON stock higher?

Q3 Highlights

Peloton reported earnings per share of 6 cents, missing the consensus estimate of 7 cents. In addition, it reported revenue of $630.90 million, beating the consensus estimate of $617.60 million and representing a 1% year-over-year increase.

The company attributed the increase to utperformance in Connected Fitness equipment sales across both Peloton and Precor brands.

Ending Paid Connected Fitness Subscriptions were 2.662 million, a decrease of 218,000 or 7.6% year-over-year.

"In Q3 we made great progress on deepening our relationships with our Members, growing our opportunities to reach new Members globally, diversifying our revenue streams, and planting new seeds for future growth," said CEO and President Peter Stern.

Stern added that the company is "accelerating our evolution into a comprehensive, global wellness ecosystem" following the launch of Peloton's Commercial Series and a new Spotify partnership.

Guidance

Peloton lowered its fiscal-year 2026 revenue guidance from between $2.49 billion and $2.50 billion to between $2.42 billion and $2.44 billion, versus the consensus estimate of $2.43 billion.

Peloton Shares Climb

PTON Price Action: At the time of publication, Peloton shares are trading 10% higher at $5.71, according to data from Benzinga Pro.

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