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(Reuters) -Peloton Interactive forecast 2026 revenue above estimates and said it would cut 6% of its global workforce to boost cost savings under an ongoing turnaround effort, sending the exercise-bike maker’s shares up nearly 23% premarket. The company also posted a surprise profit for the fourth quarter. The layoffs, along with plans to slash indirect costs and relocate some offices, are expected to help save an additional $100 million by the end of its next fiscal year, it said on Thursday. CEO Peter Stern (AS:PBHP), who joined the company in January from Ford Motor (NYSE:F), had kicked off the turnaround effort to address a slump in sales of Peloton (NASDAQ:PTON)’s high-end stationary bikes and treadmills following a boom during the COVID lockdowns, when people were looking to work out at home. In a sign the cost push was bearing fruit, operating expenses fell 20% in the fourth quarter, while general and administrative expenses were down 33% from last year. Gross margin from its connected fitness products such as technology-enabled home exercise machines rose 900 basis points to 17.3% from a year ago. Gross profit in the segment rose 96% to $34.4 million. Peloton posted quarterly profit of 5 cents per share, compared with Wall Street estimates for a loss of 6 cents per share. The company forecast 2026 revenue in the range of $2.4 billion to $2.5 billion, higher than analysts’ estimate of $2.41 billion, according to data compiled by LSEG. Total revenue for the quarter ended June was $606.9 million. Analysts, on average, were expecting revenue of $579.80 million in the fourth quarter. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year.. In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if F is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

By Michael Erman (Reuters) -Merck & Co on Tuesday announced job and cost cuts it said will save $3 billion a year as it posted lower second-quarter results due to continuing weak demand for its Gardasil vaccine in China. Shares of the drugmaker fell nearly 3% to $81.58 in premarket trading. The company said the cost cuts include $1.7 billion in annual savings from the elimination of certain administrative, sales and R&D positions. It also plans to reduce its global real estate footprint and optimize its manufacturing network. Chief Executive Rob Davis said in a press release that the moves "will redirect investment and resources from more mature areas of our business to our burgeoning array of new growth drivers." The company expects to achieve the full $3 billion in annual savings by the end of 2027. Investors have been concerned about where Merck (NSE:PROR) will replace revenue from its blockbuster cancer treatment Keytruda - the world’s best-selling drug, which is set to lose patent protection toward the end of the decade. Gardasil’s problems in China have also been a drag on the company’s results. Merck said it earned $5.4 billion, or $2.13 a share, in the quarter, down from $5.8 billion, or $2.28 a share, a year earlier. Analysts, on average, had forecast earnings of $2.01 a share. Merck’s quarterly R&D costs were lower than expected. Revenue in the quarter was $15.8 billion, down from $16.1 billion a year earlier. Analysts, on average, were expecting revenue of $15.9 billion. Gardasil sales missed already weak Wall Street estimates. The company said it sold $1.1 billion of the vaccine, which prevents cancer caused by the human papillomavirus, down 55% from a year ago. Analysts had been expecting $1.3 billion of Gardasil sales in the quarter. Merck paused shipments of Gardasil to China in January. It said the decline was primarily in China, but lower demand in Japan had hurt sales as well. Sales of Keytruda rose 9% to just under $8 billion in the quarter, topping analyst forecasts of $7.9 billion. The company, which announced a $10 billion takeover of UK-based Verona Pharma (NASDAQ:VRNA) earlier in July, narrowed its full-year revenue forecast to a range of $64.3 billion to $65.3 billion. It had previously forecast revenue of $64.1 billion to $65.6 billion for the year. It now expects to earn $8.87 to $8.97 a share in 2025. Analysts had forecast 2025 earnings to be $8.87. Before you buy stock in MRK, consider this: ProPicks AI are 6 easy-to-follow model portfolios created by Investing.com for building wealth by identifying winning stocks and letting them run. Over 150,000 paying members trust ProPicks to find new stocks to buy – driven by AI. The ProPicks AI algorithm has just identified the best stocks for investors to buy now. The stocks that made the cut could produce enormous returns in the coming years. Is MRK one of them?