Planet Fitness slashed its 2026 revenue growth forecast to approximately 7% from 9% and abandoned planned price increases as New Year signups disappointed investors. The Hampton, NH gym chain's shares plunged 12% to $56.29 in premarket trading following the announcement, reflecting investor concerns about the company's growth trajectory in a challenging fitness market.

Despite the disappointing outlook, Planet Fitness reported stronger-than-expected first-quarter earnings of $51.6 million, or 65 cents per share, up from $41.9 million a year earlier. Adjusted earnings reached 74 cents per share, exceeding analyst forecasts of 63 cents per share, demonstrating the company's underlying profitability remains robust despite the growth concerns.

The gym industry faces persistent challenges in converting New Year's resolution seekers into long-term members, a pattern that has forced Planet Fitness to temper expansion plans. Wall Street now questions whether the company can achieve its revised growth targets while maintaining profitability in an increasingly competitive fitness market where consumer behavior continues to evolve.