Key Highlights
- Truist Securities increased HIMS price target from $27 to $32 while keeping a Hold rating
- The firm projects 2026 U.S. GLP-1 revenue at $1.2 billion, a significant jump from $802 million in 2025
- Compounded GLP-1 revenue ($625M) is forecast to surpass branded prescription revenue ($578M) in 2026
- Shares of HIMS finished Tuesday’s session at $31.75, gaining 2%, with a weekly advance of 13.5%
- Margin expansion expected in the latter half of 2026 for both compounded and branded weight-loss segments
Shares of Hims & Hers Health (HIMS) advanced 2% to close at $31.75 on Tuesday after Truist Securities published an updated financial outlook for the telehealth platform, incorporating insights from proprietary payment card data and second-quarter 2026 earnings information.
Hims & Hers Health, Inc., HIMS
Jailendra Singh, an analyst at Truist, maintained a Hold rating on the stock while increasing the price objective to $32 from the previous $27 target.
The investment firm now projects U.S. GLP-1 medication revenue will reach $1.2 billion in 2026, representing an upward adjustment from its prior $1.14 billion forecast and marking substantial growth from 2025’s $802 million.
According to Truist’s analysis, weight-loss products are anticipated to account for approximately 40% of the company’s total annual revenue in 2026. The firm’s full-year revenue projection stands at $3.159 billion, positioning toward the lower end of management’s guidance range of $3.1 billion to $3.3 billion.
In a notable shift from earlier projections, Truist now anticipates that compounded GLP-1 medications will emerge as the primary revenue driver. The firm forecasts $625 million from compounded formulations, marginally exceeding the $578 million expected from branded prescription sales.
This represents a reversal from Truist’s previous outlook, which had positioned branded prescriptions as the dominant category.
Singh attributes this adjustment to two key factors. The compounded segment has demonstrated better-than-anticipated customer retention rates, while branded membership acquisition has experienced a deceleration.
“Any incremental improvement in retention should be beneficial to HIMS overall revenue and profitability,” Singh wrote.
Profitability Trajectory
The firm anticipates margin expansion during the second half of 2026. Adjusted EBITDA margins for compounded prescriptions are forecast to reach 18.5%, representing improvement from the 15.5% recorded in Q2. Margins on branded medications are projected at 16.5%, a substantial increase from the 5% level seen in the second quarter.
Of the total branded revenue, Truist estimates approximately 55%, or $320 million, derives from medication costs, while the remaining 45% originates from subscription membership fees.
The telehealth company delivered Q2 revenue of $753 million, representing a 40% year-over-year increase that exceeded analyst estimates. However, it recorded a per-share loss of $0.37, which came in wider than market expectations.
On the Q2 earnings conference call, CFO Yemi Okupe highlighted the company’s March launch of expanded branded weight-loss products as a “key driver” behind quarterly growth momentum.
Wall Street Perspectives
Analyst sentiment on HIMS remains divided. Needham elevated its price objective to $42, pointing to robust Q2 performance and a strategic collaboration with Novo Nordisk. Canaccord Genuity maintained its Buy recommendation with a $40 target. Meanwhile, Barclays reduced its target from $39 to $35, expressing concerns about margin compression.
The company has delivered 28% revenue expansion alongside a 69.5% gross profit margin, with the analyst community generally anticipating HIMS will achieve profitability during the current year.
The stock has rallied 13.5% over the trailing week. Truist’s proprietary card transaction data indicates that retention metrics among current branded program subscribers continue to hold steady.
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