Where His Life and His NYSE: HE reported Q1 FY2026 earnings on May 11, shareholders were embarrassed by the size of the double miss.
The telecommunications giant reported earnings per share (EPS) of 44 cents, compared with analyst expectations of 4 cents, and revenue for the quarter of just over $608 million fell sharply from the consensus estimate of $617 million.
While that revenue figure failed to inspire investors, it was the EPS equivalent of a miss of more than 1,000% that caught the market by surprise, causing the stock to sell off sharply. Since the Q1 call, the stock is down about 23%.
Price chart for Hims & Hers Health, Inc. (HIMS) for Thursday, May, 21, 2026
But, for buy-and-hold investors, the long-term investment thesis remains the same.
The company operates at the intersection of many high-growth markets that favor its international expansion efforts, continues to show strong revenue growth, and its GLP-1 strategic partnership with Danish multinational pharmaceutical company Novo Nordisk. NYSE: NVO—maker of the semaglutide weight-loss drugs Wegovy and Ozempic—should start bearing fruit as soon as the second quarter.
Global Demand Bodes Well for International Expansion
His Life and Hers Today
His & Her Life
- 52 week interval
- $13.74
▼
$70.43
- Target Value
- $29.37
Hims & Hers operates in five main categories: Sexual Health, Hair Care, Dermatology, Mental Health, and Weight Loss.
All five of those businesses fall into telehealth, a global market that is predicted to have a compound annual growth rate (CAGR) of nearly 25% from 2025 to 2030, according to industry consulting firm Grand View Research.
Yet each of the five main sectors is also poised for significant growth.
During the same forecast period, Grand View Research projects:
Overall, those global markets predicting growth should bolster the company's international expansion efforts, which include the pending acquisition of leading Australian digital health platform Eucalyptus—a company that has served more than 775,000 customers since its inception in 2019.
That deal, Hims & Hers announced in February, is expected to close in the second half of 2026 and will expand the company's global footprint while supporting its long-term 2030 goals of at least $6.5 billion in revenue.
According to the Hims & Hers report, “Eucalyptus currently has an annual revenue rate (ARR) north of $450 million…[and] uses a strong capitalization framework, delivering triple-digit ARR growth year-over-year in each quarter of calendar year 2025.
As part of the acquisition, Tim Doyle, founder and CEO of Eucalyptus, will become SVP of International at Hims & Hers, overseeing the company's international business.
GLP-1 Pivot and AI Investments Can Boost Growth in Q2
The company's weight-loss drug pivot in Q1 is still off the books, but that should change in Q2.
After Novo Nordisk dismissed its patent infringement lawsuit against Hims & Hers, the telehealth platform adopted a new strategy to sell branded GLP-1s in partnership with Novo.
Since that deal, Hims & Hers has completed more than 125,000 Wegovy submissions and is on track to add more than 100,000 new weight loss subscribers per month through the end of the year. That was enough to prompt management to raise its full-year guidance to a revenue range of $2.8 billion to $3 billion, and $275 million to $350 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).
Another encouraging factor is the company's heavy investment in artificial intelligence (AI) and data infrastructure. Hims & Hers is building supplier and consumer AI replicas, expanding its internal AI team, and acquiring YourBio to get a blood sample at home, which will strengthen the proprietary data flywheel that executives say will create a long-lasting competitive advantage.
Together, international expansion, AI investments, and proprietary data consolidation should build on the high expansion the company is already experiencing. Over the past five years, Hims & Hers has seen annual revenue growth of over 74%, and quarterly revenue growth over the past five quarters has averaged nearly 53%.
A Growth Stock With Much Growing To Do
Notably, Hims & Hers Health is facing margin compression, and its efforts to expand globally to acquire Eucalyptus may dilute shareholders in the future.
The company has loaned $350 million in zero-coupon convertible senior notes to institutional investors due 2032. While the zero dividend seems attractive, if HIMS shares reach $29.53 or higher in 2032, those notes could be converted into shares.
However, between the predicted CAGR of its various business segments, management raising their guidance for the full year, and the continued expansion of the top line, Hims & Hers Health can offer high potential for investors looking to add a low-cost buyer to their portfolios.
Hims & Hers Health Stock Forecast Today
$29.37
26.19% changedHold on
Based on 17 Analyst Ratings
| Current Price | $23.27 |
|---|---|
| High Forecast | $60.00 |
| Average prediction | $29.37 |
| Low Prognosis | $18.00 |
Hiss & Hers Health Stock Forecast Details
After losing nearly 64% over the past year, the stock has recently recovered from oversold territory when looking at the Relative Strength Index on the three- and six-month charts.
The consensus holding ratio is not encouraging enough for speculative investors; the stock's 12-month price average suggests a potential upside of 31%, while the high-end average suggests more than a 104% potential upside.
Volatility is likely to continue as evidenced by the stock's current beta of 2.43 and increased short interest of 31.4% of the float.
But bearish sentiment is much lower than it was when short interest in the stock was at its peak in Q3 2025, when $4.27 billion worth of shares were shorted compared to $1.72 billion today.
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