Key Takeaways
- PLNT shares collapsed approximately 33% during trading on May 7, reaching a 52-week low of $37.03
- First-quarter results exceeded Wall Street expectations with EPS of $0.74 versus $0.63 forecast and revenue of $337.2M, representing ~22% annual growth
- FY2026 EPS outlook revised down to $3.19, falling short of Wall Street’s ~$3.37 estimate
- Black Card membership pricing increases scrapped by leadership, with weak January enrollment figures cited as primary concern
- William Blair shifted stance from Outperform to Market Perform; several firms reduced price objectives
Shares of Planet Fitness (PLNT) experienced a dramatic decline of approximately 33% during Thursday’s session on May 7, reaching a fresh 52-week bottom at $37.03 following the gym operator’s decision to significantly reduce its fiscal 2026 projections even as quarterly results topped expectations.
The equity had finished the previous trading day at $63.96. Trading was temporarily halted due to limit up/limit down circuit breaker protocols before shares resumed changing hands.
The first-quarter performance itself delivered positive surprises. The fitness chain reported earnings per share of $0.74, surpassing the Street’s $0.63 projection by $0.11, while quarterly revenue reached $337.2 million—approximately $38 million beyond estimates and reflecting nearly 22% year-over-year expansion.
Total membership approached 21.5 million by quarter’s end, with same-club sales across the system advancing roughly 3.5%.
The sharp decline stems from forward-looking concerns rather than current performance.
Forward Outlook Triggers Market Reaction
Company leadership established FY2026 EPS guidance at $3.19—trailing the approximately $3.37 analyst consensus forecast—while projecting revenue near $1.4 billion, indicating a more moderate expansion pace than investors had anticipated.
Management also reversed course on previously announced Black Card membership price adjustments, a decision that directly impacts future revenue projections.
Executives attributed the revised outlook primarily to disappointing new member acquisition during the January period—traditionally among the most robust enrollment windows for fitness facilities.
Planet Fitness additionally lowered expectations for adjusted EBITDA and system-wide club sales performance throughout the year.
Analyst Community Responds
William Blair represented the most prominent firm to reduce conviction, downgrading PLNT from Outperform to Market Perform in response to the announcement.
Piper Sandler had previously adjusted its rating to Neutral from Overweight during February.
TD Cowen reduced its price objective from $100 to $90 while preserving its Buy recommendation. Royal Bank of Canada lowered its target from $120 to $85, continuing with an Outperform stance. Wells Fargo adjusted downward from $90 to $80 while maintaining an Overweight rating.
Robert W. Baird also brought its target to $100, which remains above current trading levels.
Across the analyst community, the average price target stands at $109.27, representing a substantial premium to current market prices. The consensus rating holds at “Moderate Buy,” comprising 13 Buy or Strong Buy recommendations, five Hold ratings, and one Sell rating.
PLNT currently carries a market capitalization near $3.41 billion with a price-to-earnings ratio of 16.27.
The 50-day moving average sits at $73.99, while the 200-day moving average registers 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.
