Planet Fitness shares were up about 4% on Friday, but don't let that fool you — there's a lot going on under the hood. The fitness chain reported a solid first quarter that beat analyst expectations on both earnings and revenue, but then it slashed its full-year outlook. And that has analysts rethinking their enthusiasm.

On Thursday, Planet Fitness reported adjusted earnings per share of 74 cents, well above the 63-cent consensus. Revenue came in at $337.23 million, also beating the $299.32 million estimate and up nearly 22% from a year ago. System-wide same-club sales rose 3.5%, and total system-wide sales hit $1.4 billion, up $88 million year-over-year.

So far, so good. But the company also cut its fiscal 2026 guidance below what Wall Street was expecting. That's the kind of thing that makes investors nervous, and it prompted Bank of America Securities analyst Andrew Didora to downgrade the stock from Buy to Neutral. He also slashed his price target from $110 to $59 — a pretty dramatic move.

What went wrong? According to Didora, it's a marketing problem. Planet Fitness added 700,000 net new members in the first quarter, which is typically the strongest sign-up period of the year. But that number missed the company's own internal expectations. Management blamed marketing missteps: instead of targeting beginners — the core Planet Fitness demographic — the campaigns went after more fitness-focused consumers. That's like a fast-food chain advertising to vegans. It just doesn't work.

On top of that, Planet Fitness decided to delay a planned price increase for its Black Card membership, which would have boosted revenue. And the company lowered its 2026 guidance across the board: same-club sales growth, revenue, EBITDA, and earnings per share. Didora cut his 2026 EPS estimate to $3.22 from $3.39, and his 2027 forecast to $3.70 from $4.10.

“New marketing initiatives and a fresh advertising campaign may take time to gain traction,” Didora said, meaning there aren't any obvious catalysts to lift the stock in the near term.

Other analysts are also trimming their expectations. On Friday, Guggenheim maintained a Buy rating but lowered its price target to $95. Wells Fargo kept an Overweight rating but cut its target to $65. KeyBanc did the same, dropping to $65. Overall, the stock still has a consensus Buy rating from 23 analysts, with an average price target of $92. But that average is likely to come down as more analysts update their models.

Planet Fitness shares were trading at $45.82 on Friday afternoon, up 4.12% on the day. That's still a long way from that $92 average target, but it's also a reminder that even good news can get overshadowed by a weaker outlook. For now, the market is waiting to see if the new marketing strategy can get the membership machine humming again.