Why are Hims & Hers shares sliding despite raising its 2026 revenue forecast?

Hims & Hers shares are sliding because its aggressive expansion into branded weight-loss products—particularly amid anticipated peptide drug competition—is increasing costs and squeezing gross margins, leading the company to lower the top end of its adjusted core earnings outlook; as CFO Oluyemi Okupe stated, 'As branded weight loss products and international revenue become a larger portion of the business, we expect gross margins will remain below the levels we have historically achieved.'

What is Hims & Hers' long-term financial target through 2030, and how does current margin pressure affect confidence in achieving it?

Hims & Hers aims for at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030; however, analysts remain cautious—Leerink’s Michael Cherny noted 'a tough balance between spending to grow and growth,' while Barclays’ Glen Santangelo acknowledged near-term margin weakness, calling the latest quarter 'not the better margin quarter,' even as he projected potential margin improvement in the second half of the year.

Hims & Hers shares slide as costly weight-loss push squeezes margins

Aug 11, 2026

Hims & Hers shares declined as analysts warned that aggressive spending on weight-loss drugs is compressing profit margins, prompting a trimmed earnings outlook despite raised revenue forecasts.

reuters

2026-08-11

Hims & Hers shares slide as costly weight-loss push squeezes margins

Hims & Hers shares slide as costly weight-loss push squeezes margins

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