Key Takeaways
- PLNT shares plummeted approximately 33% during trading on May 7, reaching a fresh 52-week low of $37.03
- First-quarter results exceeded expectations with EPS of $0.74 versus $0.63 consensus; revenue of $337.2M reflected ~22% YoY growth
- Full-year 2026 EPS forecast reduced to $3.19, falling short of the ~$3.37 Street estimate
- Company scrapped previously announced Black Card membership fee increases and reported disappointing New Year enrollment figures
- William Blair shifted rating from Outperform to Market Perform; numerous analysts slashed their targets
Shares of Planet Fitness (PLNT) experienced a devastating 33% decline on Thursday, May 7, plunging to a new 52-week bottom of $37.03 after the fitness chain dramatically reduced its fiscal year 2026 projections—even as first-quarter performance exceeded Wall Street’s expectations.
The shares had settled at $63.96 during the previous trading session. Trading was temporarily halted during the day due to a limit up/limit down circuit breaker before activity resumed.
The company’s first-quarter performance was actually impressive. Planet Fitness delivered earnings per share of $0.74, surpassing the Street’s $0.63 estimate by $0.11, while quarterly revenue reached $337.2 million—approximately $38 million above forecasts and representing nearly 22% annual growth.
Total membership count approached 21.5 million by quarter-end, with system-wide same-club sales advancing roughly 3.5%.
So what triggered the massive selloff? The answer lies in forward-looking guidance.
Lowered Forecast Triggers Market Panic
Company leadership established fiscal 2026 EPS guidance at $3.19—falling below the approximately $3.37 analyst consensus—and provided revenue guidance hovering around $1.4 billion, indicating a deceleration in expansion compared to what investors had anticipated.
Additionally, the company abandoned previously planned price increases for its Black Card premium membership option, a decision that directly undermines future revenue projections.
Executives attributed the revised outlook to disappointing new member enrollment during the New Year period—traditionally the most robust season for gym memberships.
Planet Fitness also reduced its adjusted EBITDA expectations and system-wide club sales projections for the fiscal year.
Analyst Community Responds
William Blair downgraded PLNT from Outperform to Market Perform in response to the announcement, representing the most prominent analyst firm to withdraw its bullish stance on the equity.
Piper Sandler had previously shifted the stock 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, also keeping an Outperform rating. Wells Fargo trimmed its target from $90 to $80 while retaining an Overweight stance.
Robert W. Baird also cut its price target to $100, which still represents upside from current trading levels.
Despite the widespread reductions, the average analyst price target stands at $109.27, representing a substantial disconnect from the stock’s current price. The consensus recommendation remains “Moderate Buy,” comprising 13 Buy or Strong Buy ratings, five Hold recommendations, and one Sell rating.
PLNT currently carries a market capitalization of approximately $3.41 billion and trades at a price-to-earnings ratio of 16.27.
The equity’s 50-day moving average stands at $73.99, while its 200-day moving average sits at $91.54. For the year-to-date period, PLNT has declined more than 41%.
Institutional ownership comprises roughly 95.5% of outstanding shares.
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