Hims & Hers stock doubles in 6 months on weight-loss growth

Hims & Hers Health shares surged 105.4 percent in six months, more than doubling as branded weight-loss offerings and international expansion reaccelerated U.S. growth.

The company raised its 2026 revenue outlook to $3.1 billion to $3.3 billion, and CFO Yemi Okupe said management has more conviction in its 2030 target of at least $6.5 billion in revenue.

Second-quarter revenue rose 38 percent year over year to $753 million, beating the $699 million analysts expected, while net subscriber additions of 300,000 lifted the total to 2.89 million. Monthly revenue per average subscriber climbed 21 percent to $92, and international revenue surged more than 17-fold to $131 million, including about $40 million from Eucalyptus.

The rally, which outpaced the healthcare industry's 45.8 percent gain and the S&P 500's 12.5 percent rise over the same stretch, reflects a sharp improvement in growth after a slower start to 2026. Yet the push into branded GLP-1 drugs has compressed gross margins for a fourth straight quarter, and the company swung to a $127.9 million net loss from a $43.5 million profit a year earlier.

The March decision to broaden branded weight-loss offerings became the main driver. Hims & Hers fulfilled more than 125,000 Wegovy shipments within six weeks of launching direct access to Novo Nordisk's products and added access to Eli Lilly's Zepbound. Management expects the resulting subscriber cohorts to accelerate U.S. revenue and EBITDA in the second half.

International operations are becoming a meaningful growth engine. The United Kingdom, Australia and Germany each exceed $100 million in annualized revenue, while Canada is approaching that threshold.

AI is improving engagement while lowering the cost to serve. The new AI-native care experience for weight-loss customers tripled messaging activity, with AI handling about 80 percent of questions and cutting nonclinical support tasks by nearly 50 percent. Management expects these efficiencies to pay back within 12 to 18 months.

Cross-selling is increasing customer lifetime value. Lab capabilities can identify needs involving low testosterone and cardiovascular health, while testosterone is expected to become the company's sixth U.S. specialty with a $100 million annual revenue run rate.

Rivals Stake Claims in Consumer Digital Health

Hims & Hers faces competition from digital-health platforms with different strengths. Doximity reported revenue of $157 million in the first quarter of fiscal 2027, up 7 percent year over year, while GoodRx's Pharma Direct revenue rose 76 percent in the second quarter. Tempus AI posted 22 percent revenue growth to $382.5 million in the second quarter. Relative to these peers, Hims & Hers has the strongest direct exposure to consumer subscription healthcare and weight-loss demand.

Margins and Regulation Cloud the Outlook

The biggest risks in the second half of 2026 are regulatory, mix and execution related. Gross margins will remain pressured as branded weight-loss products and international revenue represent a larger share of sales. The strategic shift away from compounded GLP-1 infrastructure resulted in $33 million of restructuring costs in the first quarter. The company also faces an FTC lawsuit over alleged misuse of user data, which it disputes.

The more than doubling of Hims & Hers' stock is supported by accelerating U.S. growth, branded GLP-1 adoption, international expansion and AI-enabled efficiency. However, regulatory uncertainty and margin compression warrant caution, with the stock carrying a Zacks Rank #3 (Hold).

This article is for informational purposes only and does not constitute investment advice.