Hims & Hers Stock Plunges After Q1 Miss: Is the GLP-1 Pivot Enough to Fuel a Recovery?

Key Points

• Hims & Hers shares plunged over 12% in after-hours trading after reporting a Q1 double-miss, with an EPS loss of negative 40 cents versus four cents expected and year-over-year revenue growth of just 3.8%.
• The company is seeing success with its Novo Nordisk partnership, fulfilling over 125,000 Wegovy shipments in Q1, and planning to bolster its global footprint through the acquisition of Eucalyptus.
• Management raised full-year guidance and reiterated ambitious 2030 revenue targets, supported by operating in high-growth telehealth and weight-loss markets that are projected to expand significantly through the end of the decade.

Shares of telehealth provider Hims & Hers Health NYSE: HIMS sold off sharply following disappointing Q1 FY2026 financial results, with shares falling more than 12% in after-hours trading after the company reported on May 11.

Expectations for the quarter were high, particularly after partnering with Danish multinational pharmaceutical company Novo Nordisk NYSE: NVO.

In March, Novo Nordisk dismissed its patent infringement lawsuit against Hims & Hers Health and entered into a partnership with the company to sell its GLP-1 weight loss drugs Wegovy and Ozempic on the telehealth platform.

But that wasn’t enough to keep the company from posting a double miss in its Q1 report, which marked the company’s fourth miss on both earnings and revenue in the past five quarters. Shares of HIMS are now down more than 50% over the past year, including a loss of nearly 20% year-to-date.

The Losing Streak Continues for Hims & Hers Health

On Monday, the company reported a Q1 earnings per share (EPS) loss of negative 40 cents, missing analyst expectations for four cents by a wide margin.

Quarterly revenue came in at $608.10 million, which was also below the consensus estimate of $616.84 million. Concerningly, that figure marks just 3.8% year-over-year revenue growth.

The company attributed slow revenue growth and the earnings loss to approximately $33 million in restructuring charges, including  a roughly $28 million write‑down tied to the GLP‑1 compounding pivot.

The earnings report wasn’t all bad news, though. Hims & Hers Health highlighted how its GLP-1 strategy pivot with Novo Nordisk is already bearing fruit. The company fulfilled more than 125,000 Wegovy shipments in Q1 and is on track to add more than 100,000 new weight-loss subscribers per month.

Hims & Hers also noted that international expansion is increasingly a strategic focus. The acquisition of Eucalyptus is expected to be completed in the second half of the year, broadening the company’s global footprint and supporting its 2030 targets of at least $6.5 billion in annual revenue and $1.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

In his earnings call comments, CEO Andrew Dudum said the company’s growing international reach is becoming a competitive advantage because it expands its total addressable market, increases its value to industry partners, and strengthens platform network effects.

Perhaps most importantly for buy-and-hold investors, management raised its full-year guidance for revenue to the range of $2.8 billion to $3 billion and $275 million to $350 million in adjusted EBITDA. Dudum added that “2026 is proving to be a year of accelerating growth, which reinforces our confidence in our ambitious 2030 targets.”

Hims & Hers Remains a Growth Story

The company finds itself at the confluence of multiple high-growth markets. According to industry consultancy firm Grand View Research, the global weight loss supplement market, which was valued at $33.14 billion in 2024, is expected to undergo a compound annual growth rate (CAGR) of 14.17% from 2025 to 2030, reaching a valuation of nearly $72 billion.

Grand View Research forecasts that the global telehealth market will experience even more rapid growth, with a CAGR of 24.68% from 2025 to 2030. That will result in its value increasing from just over $123 billion in 2024 to more than $455 billion by the end of the forecast period.

And while growth for the global hair thinning market is not expected to be as pronounced as it is for telehealth and weight loss markets, Grand View Research pins its CAGR at 10.85% from 2025 to 2030.

Those markets’ projected growth bodes well for Hims & Hers Health, which is in the process of transitioning from a niche wellness brand into a comprehensive, technology-driven healthcare platform. The company is also expanding into cardiovascular screenings, preventative care, dermatology, and diagnostic partnerships.

The Long-Term Prospects Remain Positive

Despite the recent selloff, analyst expectations remain mostly positive.

While the stock receives a consensus Hold rating, its average 12-month price target suggests more than 15% potential upside. The high-end price target of $60 implies as much as 100% potential upside, while the low-end price target of $18 means shares of HIMS could see additional losses of around 38%.

In the short-term, traders should expect more volatility ahead. Current short interest is concerningly high at more than 31%. And while institutional activity slowed dramatically in Q1, sellers outnumbered buyers in Q4 FY2025 with outflows of $861 million easily surpassing inflows of $318 million.

At the same time, the stock has seen insider buying disappear, while insider selling has totaled nearly $125 million over the past year. That has driven down insider ownership to less than 13%.

With a trailing 12-month EPS of 51 cents and a forward price-to-earnings ratio of around 48, Hims & Hers Health’s earnings are expected to grow more than 26% over the next year, from 53 cents per share to 67 cents per share.