The latest trading day saw Hims & Hers Health, Inc. (HIMS) settling at $28.17, representing a +1.66% change from its previous close.
Recently, Zacks.com users have been paying close attention to Hims & Hers Health (HIMS). This makes it worthwhile to examine what the stock has in store.
HIMS raised its 2026 revenue outlook after Q2 sales jumped 38.2%, but margin contraction and an $86.3 million net loss highlighted growth costs.
HIMS has entered the second half of 2026 with weight-loss, international and AI momentum, but margin pressure and FDA uncertainty remain.
Hims & Hers Health (NYSE:HIMS) shares fell 3.2% after the FDA warned telehealth companies and compounding pharmacies over unapproved weight-loss drugs, including versions of semaglutide, tirzepatide and retatrutide. The agency said retatrutide and cagrilintide cannot legally be used in compounding and that it has already warned companies marketing unapproved retatrutide directly to consumers.
Hims & Hers Health is building a vertically integrated consumer-health distribution platform, with value driven by its scalable engine rather than individual products. HIMS demonstrates accelerating growth, with multiple product lines surpassing $100M ARR and rapid vertical launches, supporting a strong buy rating and a $111 price target for 2026. Q2 results showed robust revenue growth (38%) and strong Q3 guidance (47-50%), despite margin compression from branded weight-loss and international expansion.
Hims & Hers approaches 3 million subscribers as U.S. growth reaccelerates and international markets emerge as a meaningful second growth engine. International revenue reached $131 million, while testosterone is approaching Hims' sixth U.S. specialty above a $100 million annual run rate. Gross margin fell to 64%, while Q2 free cash flow reached negative $68 million, making operating leverage the critical next test.
Hims & Hers' rally is fueled by branded weight-loss growth, international expansion, AI efficiencies and a broader specialty portfolio.
Hims & Hers Health (HIMS) is rated a buy at current levels, driven by robust international expansion and product innovation. International revenue surged over 17-fold YoY to $131M, with Eucalyptus acquisition and new markets fueling growth and future $600M+ 2026 target. AI investment aims to reduce customer-support costs and improve retention, with payback expected in 12–18 months as in-house capabilities scale.
In an exclusive interview, Hims & Hers CEO Andrew Dudum sits down with Squawk Box Co-Anchor Andrew Ross Sorkin and shares his perspective on how AI can transform healthcare, the company's transition from compound to brand name GLP-1s, and his vision to bring down the cost of healthcare.
I'm maintaining my buy on Hims & Hers Health, and the reasoning has moved past the branded GLP-1 transition that drove my May upgrade. 2Q revenue grew 38% to $753.2 million and management raised the full-year outlook to $3.1–$3.3 billion, while gross margin fell six points sequentially to 64%. HIMS is now a distribution layer for branded weight-loss drugs, a business that buys revenue with margin, and the EBITDA guide shows the bill.
Hims & Hers Health delivered strong Q2 2026 revenue growth but suffered margin compression and negative free cash flow. I rate HIMS a Sell, as the raised revenue guidance is offset by declining gross margins and a stagnant adjusted EBITDA outlook. The shift to branded GLP-1 weight-loss drugs and international expansion are driving higher costs and complicating the profitability story.