Key Highlights
- Shares of PLNT collapsed approximately 33% during trading on May 7, reaching a fresh 52-week low at $37.03
- The fitness chain exceeded Q1 projections with EPS of $0.74 versus expectations of $0.63; revenue reached $337.2M, marking ~22% year-over-year growth
- FY2026 EPS forecast reduced to $3.19, falling short of Wall Street’s ~$3.37 estimate
- Company abandoned its strategy to raise Black Card membership fees and reported disappointing New Year enrollment figures
- William Blair shifted its rating from Outperform to Market Perform; several analysts reduced their price projections
Shares of Planet Fitness (PLNT) experienced a dramatic collapse of approximately 33% on Thursday, May 7, sinking to a new 52-week bottom at $37.03 following the company’s decision to dramatically reduce its full-year 2026 projections, even as it surpassed first-quarter performance benchmarks.
The previous trading session had ended with shares valued at $63.96. Trading was temporarily suspended during the day due to exchange limit mechanisms before activity resumed.
The first quarter results themselves were notably strong. The gym operator delivered earnings per share of $0.74, surpassing Wall Street’s $0.63 projection by $0.11, while quarterly revenue totaled $337.2 million — approximately $38 million above forecasts and representing nearly 22% year-over-year expansion.
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The company’s membership base reached approximately 21.5 million by quarter’s end, while same-club sales across the system increased by roughly 3.5%.
So what triggered the massive selloff? The answer lies in the company’s future outlook.
Forward Projections Trigger Market Panic
Executive leadership established FY2026 earnings per share guidance at $3.19 — falling beneath the ~$3.37 consensus among financial analysts — and provided revenue guidance hovering around $1.4 billion, indicating a more modest expansion pace than investors had anticipated.
The fitness operator also scrapped its intended price increase for Black Card memberships, a decision that immediately undermines future revenue projections.
Company executives cited underwhelming new member enrollment during the New Year timeframe — traditionally among the most robust periods for gym memberships — as a primary factor behind the adjusted forecasts.
Planet Fitness additionally reduced its adjusted EBITDA projections and system-wide club sales expectations for the fiscal year.
Analyst Community Responds
William Blair downgraded the stock from Outperform to Market Perform in response to the announcement, representing the most prominent analyst firm to withdraw support for the stock.
Piper Sandler had previously shifted its stance to Neutral from Overweight in February.
TD Cowen reduced its price objective from $100 to $90 while maintaining a Buy recommendation. Royal Bank of Canada lowered its target from $120 to $85, continuing with an Outperform rating. Wells Fargo decreased its target from $90 to $80 while preserving an Overweight designation.
Robert W. Baird also reduced its target to $100, still positioned above current trading levels.
Notwithstanding the reductions, the mean analyst price target stands at $109.27, representing a substantial premium to current trading levels. The consensus recommendation remains “Moderate Buy,” comprising 13 Buy or Strong Buy ratings, five Hold ratings, and a single Sell rating.
PLNT currently commands a market capitalization of approximately $3.41 billion and trades at a P/E multiple of 16.27.
The stock’s 50-day moving average sits at $73.99 while its 200-day moving average rests at $91.54. For the year-to-date period, PLNT has declined more than 41%.
Institutional ownership accounts for approximately 95.5% of outstanding shares.
