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HIMS Stock Dips 14.3% Since Q1 Earnings: Should You Still Hold or Sell?
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Key Takeaways
Hims & Hers' revenues grew on subscriber gains, but swung to a net loss as margins narrowed.
HIMS teamed with Novo Nordisk to widen FDA-approved GLP-1 weight-loss access, including the Wegovy pill.
Hims & Hers is expanding globally via ZAVA, Livewell and Eucalyptus while investing in AI and diagnostics.
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term losses. The San Francisco, CA-based health and wellness platform’s stock has lost 14.3% compared with the industry’s 6.5% decline since reporting its first-quarter 2026 results on May 11. It has also underperformed the sector and the S&P 500’s gain of 2.5% and 1.3%, respectively, in the same time frame.
Two major recent developments of HIMS are the announcement of first-quarter 2026 results and a collaboration with Novo Nordisk as part of a new strategy for weight loss care treatments involving GLP-1s (in March).
Hims & Hers reported modest top-line growth in the first quarter of 2026, supported by subscriber expansion, rising demand for its personalized healthcare offerings and momentum in branded weight-loss treatments. The company also continued to strengthen its platform through investments in AI, diagnostics and international expansion initiatives. However, profitability deteriorated during the quarter. HIMS reported a net loss against the prior-year profitability, while gross margins contracted due to restructuring charges, elevated operating expenses and continued investments aimed at scaling its technology infrastructure and expanding care offerings.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Despite its weak performance since releasing its quarterly results, the stock’s performance has been robust over the past three months, where it gained 48.7% against the industry’s loss of 2.5%. The stock has also outperformed its peers like Tempus AI, Inc. (TEM - Free Report) and Doximity, Inc. (DOCS - Free Report) . Tempus AI and Doximity’s shares have lost 12.4% and 28%, respectively, in the same time frame.
HIMS expects revenues for the second quarter of 2026 and the full year in the bands of $680 million to $700 million (reflecting an uptick of 25%-28% year over year) and $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels), respectively. The Zacks Consensus Estimate for revenues for the second quarter and the full year is currently pegged at $689.3 million and $2.91 billion, respectively, while the same for earnings per share is currently pegged at a loss of a penny and 4 cents, respectively.
Hims & Hers’ Expanding Healthcare Ecosystem Driving User Growth
Hims & Hers continues to strengthen its position as a broad-based digital healthcare platform by expanding into new treatment categories and building a more comprehensive care ecosystem. The company recently deepened its weight-loss portfolio through a collaboration with Novo Nordisk, enabling eligible users to access a wider assortment of FDA-approved GLP-1 treatments, including the Wegovy pill (the FDA-approved GLP-1 weight loss pill). Management highlighted that early demand trends from the expanded branded GLP-1 lineup are helping broaden customer reach and accelerate platform engagement.
HIMS is also pushing aggressively into preventive and personalized healthcare. New offerings such as Labs, multi-cancer early detection testing through Galleri and the planned integration of YourBio’s pain-free blood sampling technology reflect a shift toward diagnostics-led, data-driven care. These initiatives are designed to improve long-term customer engagement while positioning Hims & Hers as more than just a telehealth prescription platform.
At the same time, Hims & Hers continues expanding across high-demand specialties, including menopause, testosterone therapy and holistic wellness benefits. These additions widen the addressable market and increase cross-selling opportunities within its growing subscriber base. Management also emphasized continued investments in AI, diagnostics and technology infrastructure to improve personalization and operational efficiency across the platform.
HIMS’ International Expansion and Scale Advantages
Investor sentiment is also being supported by Hims & Hers’ aggressive international expansion strategy. The acquisitions of ZAVA, Livewell and Eucalyptus are expected to significantly broaden the company’s reach across Europe, Canada, Australia and Japan while strengthening localized healthcare capabilities. Management believes the digital-first platform can scale efficiently across geographies and deliver personalized care to a much larger global audience.
Despite margin pressure and a quarterly net loss tied to higher operating costs, restructuring charges and continued investments, investors appear encouraged by rising subscriber growth, recurring revenue visibility and management’s confidence in long-term expansion targets. HIMS also reiterated expectations for accelerating growth supported by scale efficiencies and infrastructure investments.
Challenges Ahead of Hims & Hers
Hims & Hers faces mounting regulatory and operational risks as it expands across telehealth, diagnostics and compounded drug offerings. The company operates in a highly regulated healthcare environment where evolving rules around telemedicine, prescribing practices and pharmacy operations could increase compliance costs or restrict certain services. Additionally, aggressive investments in marketing, acquisitions and infrastructure continue to pressure profitability, with HIMS reporting a quarterly net loss despite strong revenue growth, highlighting the challenge of balancing expansion with sustainable margins.
HIMS Stock’s Valuation
HIMS’ forward 12-month P/S of 1.9X is lower than the industry’s average of 3.2X and its two-year median of 3.1X.
Image Source: Zacks Investment Research
Tempus AI and Doximity’s forward 12-month P/S currently stand at 4.7X and 4.8X, respectively.
Hims & Hers’ Estimate Movement
Estimates for Hims & Hers’ 2026 earnings per share (EPS) have plunged 92.2% to 4 cents in the past 60 days.
Image Source: Zacks Investment Research
Estimates for Tempus AI’s 2026 loss per share have narrowed from 40 cents to 35 cents in the past 60 days.
Estimates for Doximity’s fiscal 2026 EPS have moved a penny south to $1.59 in the past 60 days.
Our Final Take on HIMS
Hims & Hers, a Zacks Rank #3 (Hold) company, continues to stand out as a differentiated digital health platform, supported by its expanding portfolio of personalized care offerings, growing preventive healthcare initiatives and aggressive international expansion strategy. The company’s efforts to build a more integrated healthcare ecosystem spanning diagnostics, wellness, chronic care and weight management reinforce its long-term growth narrative and strengthen its positioning within the evolving telehealth landscape.
However, the stock’s sharp decline following earnings reflects rising investor concerns around execution and profitability. Elevated operating expenses, continued investments in infrastructure and expansion initiatives, and ongoing regulatory scrutiny surrounding telehealth and certain treatment categories have pressured sentiment. Additionally, weaker earnings expectations indicate that although revenue growth remains healthy, achieving sustainable profitability may take longer than investors had anticipated.
From a valuation standpoint, HIMS appears to be trading at a discount, suggesting that investors are already pricing in a more cautious outlook. While this may leave room for upside if execution improves, the lower valuation also reflects concerns around margin pressure, earnings volatility and the pace at which investments convert into profitable growth. Additionally, the steep downward revision in earnings expectations suggests that while revenue growth remains healthy, translating scale into sustainable profitability may take longer than investors had anticipated.
For current shareholders, the stock still appears suitable for a hold rather than an outright exit, particularly for investors with a longer investment horizon and higher risk tolerance. While the broader growth story remains intact, near-term operational and regulatory uncertainties could continue to limit upside momentum. Prospective investors may benefit from waiting for improved visibility into profitability trends and execution before turning more constructive on the stock.
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HIMS Stock Dips 14.3% Since Q1 Earnings: Should You Still Hold or Sell?
Key Takeaways
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term losses. The San Francisco, CA-based health and wellness platform’s stock has lost 14.3% compared with the industry’s 6.5% decline since reporting its first-quarter 2026 results on May 11. It has also underperformed the sector and the S&P 500’s gain of 2.5% and 1.3%, respectively, in the same time frame.
Two major recent developments of HIMS are the announcement of first-quarter 2026 results and a collaboration with Novo Nordisk as part of a new strategy for weight loss care treatments involving GLP-1s (in March).
Hims & Hers reported modest top-line growth in the first quarter of 2026, supported by subscriber expansion, rising demand for its personalized healthcare offerings and momentum in branded weight-loss treatments. The company also continued to strengthen its platform through investments in AI, diagnostics and international expansion initiatives. However, profitability deteriorated during the quarter. HIMS reported a net loss against the prior-year profitability, while gross margins contracted due to restructuring charges, elevated operating expenses and continued investments aimed at scaling its technology infrastructure and expanding care offerings.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Despite its weak performance since releasing its quarterly results, the stock’s performance has been robust over the past three months, where it gained 48.7% against the industry’s loss of 2.5%. The stock has also outperformed its peers like Tempus AI, Inc. (TEM - Free Report) and Doximity, Inc. (DOCS - Free Report) . Tempus AI and Doximity’s shares have lost 12.4% and 28%, respectively, in the same time frame.
HIMS expects revenues for the second quarter of 2026 and the full year in the bands of $680 million to $700 million (reflecting an uptick of 25%-28% year over year) and $2.8 billion to $3 billion (representing growth of 19%-28% from 2025 levels), respectively. The Zacks Consensus Estimate for revenues for the second quarter and the full year is currently pegged at $689.3 million and $2.91 billion, respectively, while the same for earnings per share is currently pegged at a loss of a penny and 4 cents, respectively.
Hims & Hers’ Expanding Healthcare Ecosystem Driving User Growth
Hims & Hers continues to strengthen its position as a broad-based digital healthcare platform by expanding into new treatment categories and building a more comprehensive care ecosystem. The company recently deepened its weight-loss portfolio through a collaboration with Novo Nordisk, enabling eligible users to access a wider assortment of FDA-approved GLP-1 treatments, including the Wegovy pill (the FDA-approved GLP-1 weight loss pill). Management highlighted that early demand trends from the expanded branded GLP-1 lineup are helping broaden customer reach and accelerate platform engagement.
HIMS is also pushing aggressively into preventive and personalized healthcare. New offerings such as Labs, multi-cancer early detection testing through Galleri and the planned integration of YourBio’s pain-free blood sampling technology reflect a shift toward diagnostics-led, data-driven care. These initiatives are designed to improve long-term customer engagement while positioning Hims & Hers as more than just a telehealth prescription platform.
At the same time, Hims & Hers continues expanding across high-demand specialties, including menopause, testosterone therapy and holistic wellness benefits. These additions widen the addressable market and increase cross-selling opportunities within its growing subscriber base. Management also emphasized continued investments in AI, diagnostics and technology infrastructure to improve personalization and operational efficiency across the platform.
HIMS’ International Expansion and Scale Advantages
Investor sentiment is also being supported by Hims & Hers’ aggressive international expansion strategy. The acquisitions of ZAVA, Livewell and Eucalyptus are expected to significantly broaden the company’s reach across Europe, Canada, Australia and Japan while strengthening localized healthcare capabilities. Management believes the digital-first platform can scale efficiently across geographies and deliver personalized care to a much larger global audience.
Despite margin pressure and a quarterly net loss tied to higher operating costs, restructuring charges and continued investments, investors appear encouraged by rising subscriber growth, recurring revenue visibility and management’s confidence in long-term expansion targets. HIMS also reiterated expectations for accelerating growth supported by scale efficiencies and infrastructure investments.
Challenges Ahead of Hims & Hers
Hims & Hers faces mounting regulatory and operational risks as it expands across telehealth, diagnostics and compounded drug offerings. The company operates in a highly regulated healthcare environment where evolving rules around telemedicine, prescribing practices and pharmacy operations could increase compliance costs or restrict certain services. Additionally, aggressive investments in marketing, acquisitions and infrastructure continue to pressure profitability, with HIMS reporting a quarterly net loss despite strong revenue growth, highlighting the challenge of balancing expansion with sustainable margins.
HIMS Stock’s Valuation
HIMS’ forward 12-month P/S of 1.9X is lower than the industry’s average of 3.2X and its two-year median of 3.1X.
Image Source: Zacks Investment Research
Tempus AI and Doximity’s forward 12-month P/S currently stand at 4.7X and 4.8X, respectively.
Hims & Hers’ Estimate Movement
Estimates for Hims & Hers’ 2026 earnings per share (EPS) have plunged 92.2% to 4 cents in the past 60 days.
Image Source: Zacks Investment Research
Estimates for Tempus AI’s 2026 loss per share have narrowed from 40 cents to 35 cents in the past 60 days.
Estimates for Doximity’s fiscal 2026 EPS have moved a penny south to $1.59 in the past 60 days.
Our Final Take on HIMS
Hims & Hers, a Zacks Rank #3 (Hold) company, continues to stand out as a differentiated digital health platform, supported by its expanding portfolio of personalized care offerings, growing preventive healthcare initiatives and aggressive international expansion strategy. The company’s efforts to build a more integrated healthcare ecosystem spanning diagnostics, wellness, chronic care and weight management reinforce its long-term growth narrative and strengthen its positioning within the evolving telehealth landscape.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the stock’s sharp decline following earnings reflects rising investor concerns around execution and profitability. Elevated operating expenses, continued investments in infrastructure and expansion initiatives, and ongoing regulatory scrutiny surrounding telehealth and certain treatment categories have pressured sentiment. Additionally, weaker earnings expectations indicate that although revenue growth remains healthy, achieving sustainable profitability may take longer than investors had anticipated.
From a valuation standpoint, HIMS appears to be trading at a discount, suggesting that investors are already pricing in a more cautious outlook. While this may leave room for upside if execution improves, the lower valuation also reflects concerns around margin pressure, earnings volatility and the pace at which investments convert into profitable growth. Additionally, the steep downward revision in earnings expectations suggests that while revenue growth remains healthy, translating scale into sustainable profitability may take longer than investors had anticipated.
For current shareholders, the stock still appears suitable for a hold rather than an outright exit, particularly for investors with a longer investment horizon and higher risk tolerance. While the broader growth story remains intact, near-term operational and regulatory uncertainties could continue to limit upside momentum. Prospective investors may benefit from waiting for improved visibility into profitability trends and execution before turning more constructive on the stock.