Well, that didn’t go as planned. Hims & Hers’ (NYSE:HIMS) Q1 2026 earnings report hit the market with a thud, and its share price has lost double digits in today’s trading session.
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The most disappointing feature was a surprising bottom-line miss, as its EPS of -$0.40 was significantly worse than the $0.03 that the market had been anticipating. Sales came in just a hair under expectations, though revenue of $608 million did represent a 4% year-over-year increase.
Arguably the biggest development that’s taken place for Hims didn’t show up in the numbers. Indeed, this was the first earnings release since Hims announced a deal in early March with Novo Nordisk to sell its branded GLP-1 drugs. The drugs became available on Hims’ platform on March 26, at the tail end of the quarter.
That’s one reason that top investor known by the pseudonym Tech Stock Pros isn’t too bothered by the earnings miss.
“We remain confident that, post-expectation reset, Hims will be better positioned to beat expectations,” states the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
Tech Stock Pros points out that this was bound to be a tough quarter, as the year-over-year comparisons were sure to disappoint. In Q1 2025, Hims was selling compounded GLP-1 drugs amid brand shortages.
The investor notes that average revenue per subscriber dropped 6% year-over-year, U.S. revenue was down 8% from Q1 2025, and gross margins dropped from 73% a year ago to 65% this time around.
Still, there were some positive signs. This included a growing subscriber base, which jumped up 9% to reach 2.6 million. And the Q2 revenue guidance of $680 to $700 million was a healthy bump above the $643 million that analysts had predicted.
And while Hims and Novo did have some failed dealings in the past, Tech Stock Pros is hopeful things will be better this time around. In fact, the investor thinks that this arrangement could even serve as a model for other collaborations going forward.
“Hims’ real advantage is its being a chameleon or, in other words, its ability to adapt to different markets and serve as a gateway to a growing customer base, enabling it to repeat the Novo deal with other healthcare companies globally,” concludes Tech Stock Pros, who rates HIMS a Buy. (To watch Tech Stock Pros’ track record, click here)
Wall Street presents a somewhat lukewarm picture. With 5 Buys and 11 Holds, HIMS carries a consensus Hold (i.e., Neutral) track record. Its 12-month average price target of $29.22 points to an upside of 17%. (See HIMS stock forecast)
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.