Peloton Aims to Revitalize Sales with Enhanced Hardware and AI Features

Peloton Interactive plans to revitalize its product lineup with updated bikes and treadmills, as well as AI-driven software features. The company aims to achieve $100 million in savings by the end of the fiscal year. Analysts project an average price target of $9.43, reflecting a potential upside of 11.17%. However, GuruFocus estimates suggest a potential downside of 38.13% based on GF Value metrics.

Peloton Interactive Inc. is gearing up for a significant product overhaul, aiming to rejuvenate sales with refreshed hardware, new accessories, and AI integration. The New York-based fitness company plans to launch an updated bike, treadmill, and other branded peripherals by October. The initiative, led by CEO Peter Stern, seeks to transform Peloton into an AI-focused health and wellness company [1].

The new products will include an updated bike with a rotating screen, matching the pricier Bike+ model, and a smaller, safer display on the Tread+ treadmill. Peloton is also introducing a rowing machine called the Row+. Additionally, the company is exploring data integration from third-party devices to offer personalized workout suggestions [1].

Peloton is expanding its accessories line to include an air fan, smartphone holder, and alternative bike seat. The company is also encouraging more self-assembly, which could reduce costs and simplify operations. Stern hinted at potential price adjustments to reflect the value provided to members and operating costs [1].

Peloton's latest cost-cutting efforts involve reducing its global workforce by 6%, aiming to achieve $100 million in run-rate savings by the end of fiscal year 2026. The layoffs are part of a broader restructuring plan to lower operating expenses and fuel growth and innovation priorities [2].

Analysts have reacted positively to Peloton's turnaround plans. Goldman Sachs Group upgraded Peloton to a "buy" rating with a price target of $11.50, suggesting a potential upside of 61.74%. The average analyst price target is $9.43, reflecting a potential upside of 11.17%. However, GuruFocus estimates suggest a potential downside of 38.13% based on GF Value metrics [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/peloton-readies-updated-bike-ai-push-and-accessories-to-boost-sales
[2] https://www.retaildive.com/news/peloton-layoffs-cost-cutting-effort-q4/757158/
[3] https://www.marketbeat.com/instant-alerts/peloton-interactive-nasdaqpton-upgraded-at-the-goldman-sachs-group-2025-08-08/