Peloton shares jump after AI-driven overhaul

Investing.com -- Peloton shares rose in premarket trading on Wednesday after the company unveiled a refresh of its hardware portfolio and introduced artificial intelligence–powered coaching.

The connected fitness company launched Peloton IQ, a computer vision and AI system designed to provide personalised workout feedback, alongside its new Cross Training Series of revamped equipment.

The lineup includes upgraded versions of the Bike, Bike+, Tread, Tread+, and Row+, all featuring 360-degree swivel screens. Peloton also announced the Pro Series, its first commercial-ready equipment, including the Tread+ Pro.

According to Bernstein, the launch marks Peloton’s “first meaningful introduction of AI-powered personal coaching” into its core connected fitness offering.

The system integrates technology from the discontinued Guide, such as rep counting, weight suggestions, and form correction.

Bernstein noted that “revenue growth is firmly back on the agenda, though driven by pricing,” as Peloton also raised hardware prices by $200–$700 and increased its All-Access membership fee to $49.99 per month.

Bank of America analysts called the overhaul “an important step towards better user experience,” highlighting the integration of Peloton IQ, which will deliver “personalized guidance and dynamic coaching with real-time monitoring.”

The bank said it likes Peloton’s AI focus, arguing that greater personalization “can improve users’ experiences, potentially lowering LT churn.”

The company is also broadening its reach with new distribution partnerships. Peloton plans to expand micro-stores in the U.S., partner with Johnson Fitness&Wellness for retail sales, and roll out commercial products in 2026.

BofA reiterated a Buy rating and lifted its price objective to $11 from $9.50, citing higher revenue and EBITDA potential. Bernstein maintained a Market Perform rating with a $7.50 target.

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