Life Time Stock Surges as Strong Guidance Overrides Q4 Miss
Investors focused on double-digit growth projections for 2026, pushing shares up over 4% despite a shortfall in fourth-quarter revenue and earnings.
Shares of Life Time Group Holdings Inc. (NYSE: LTH) surged on Wednesday, closing with a 4.5% gain as investors looked past a fourth-quarter performance that fell short of expectations and instead cheered a decidedly bullish forecast for fiscal year 2026.
The luxury fitness center operator’s stock rallied to $27.91, demonstrating robust investor confidence in its long-term strategy despite the immediate headline numbers. The company reported quarterly revenue of $744.0 million, missing Wall Street’s consensus estimate of $771.7 million by 3.6%. On the bottom line, earnings per share of $0.33 were 7.7% below the anticipated $0.3575.
However, the market's focus was clearly on the future. The company's guidance for the upcoming fiscal year ignited investor enthusiasm. As disclosed in a regulatory filing with the SEC, Life Time projects strong underlying growth with Adjusted EBITDA expected to land between $910 million and $925 million, an increase of 11.3% at the midpoint. Furthermore, it anticipates Adjusted Net Income in the range of $369 million to $378 million, representing a significant 15.5% year-over-year jump.
The company noted that its GAAP Net Income guidance for 2026 appeared lower due to the impact of one-time benefits in 2025. Investors quickly looked through this accounting complexity to the stronger, adjusted figures, which are often viewed as a clearer lens into core operational performance.
Wednesday's trading session suggests the market is willing to forgive a quarterly miss when the forward-looking growth story remains compelling. The reaction aligns with the overwhelmingly positive stance from Wall Street analysts, who held an average 12-month price target of over $40 for the stock heading into the report, implying significant upside from its current level.
Life Time's strategy has been to position itself at the high end of the market, branding its facilities as premium "athletic country clubs" that offer a holistic wellness experience far beyond that of a typical gym. This model, which targets a more affluent demographic with comprehensive services, is designed to create a loyal member base with more resilient spending habits. The strong guidance for 2026 appears to serve as a key validation of this premium strategy in the eyes of investors.
For now, the market has delivered a clear verdict: the promise of double-digit growth in 2026 is more important than a slight miss in the rear-view mirror. Investors will now be watching to see if Life Time can execute on its ambitious targets and solidify its position as a leader in the premium health and wellness space.