Hims & Hers Stock: 30% Growth Can’t Hide a Margin Problem

Key Stats for HIMS Stock

• 52-Week Range: $14 to $65
• Market Cap: around $6.9 billion
• Street Mean Target: around $31
• Forward 2-Year Revenue Growth (CAGR): around 30%
• Forward 2-Year EPS Growth (CAGR): around 18%
• NTM P/E: around 23x
• LTM Gross Margin: 69.5%

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A Growth Story That Isn’t Slowing Down Yet

Hims & Hers (HIMS) has scaled from a niche telehealth subscription service into a business generating more than $2 billion a year, and the climb has been steep by any standard.

Revenue jumped from $272 million in 2021 to $2.35 billion in 2025, a trajectory built on subscriber growth and the company’s expansion into weight loss and personalized care. This growth shows up clearly in the numbers below, alongside what analysts expect next.

Analysts expect the momentum to continue in the near term, with revenue projected to reach around $3.2 billion in 2026 and climb toward roughly $4.8 billion by 2029.

One detail in that same estimate set stands out: consensus expects 2030 revenue to land slightly below the 2029 figure, the first projected step backward in the company’s growth story.

It’s a small dip on a chart that otherwise points up and to the right, but it points to where the real debate lives: how much of the current growth rate survives once compounded GLP-1 revenue fades and branded weight loss competitors ramp up their own direct-to-consumer efforts.

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Wall Street Has Cooled After a Wild Year

The last twelve months of price targets, shown in the table below, capture the shift in sentiment better than almost anything else.

Hims & Hers closed near $57 in September 2025, and the Street’s mean target sat around $47 at the time, suggesting many analysts were still playing catch-up with the rally.

By March 2026, the stock had cratered to around $21 as the compounding regulatory guidance took hold, and price targets fell alongside it to a mean near $24. The stock has since stabilized in the high $20s, but the tone among analysts has shifted.

Ratings are now mostly holds, with only a handful of buy or outperform calls left among the coverage list. The current mean target sits around $31, only modestly above where the stock trades today, a far cry from the premiums analysts were pricing in before the regulatory shock.

The shift mostly reflects analysts recalibrating how much certainty to price into a stock capable of 40 percent swings in a single quarter, not a signal that the underlying business is deteriorating.

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Should You Buy HIMS Stock?

The bull case rests on execution that has genuinely worked so far. Hims & Hers has grown revenue nearly ninefold since 2021 while building a real brand in a crowded telehealth market, and management has shown it can pivot into new categories like personalized care as the compounding business winds down.

With the stock trading well below its 2025 highs and analyst sentiment already reset to mostly neutral, much of the near-term regulatory risk may already be reflected in the price.

The bear case centers on margins that haven’t stopped falling and a regulatory environment that remains unsettled. Competition from Novo Nordisk, Eli Lilly, and other branded weight loss platforms is intensifying at the same time Hims & Hers is losing its highest-margin revenue stream, and the stock’s history of sharp, headline-driven swings makes it a poor fit for investors who need stability.

Until margins stabilize and the regulatory picture clears, the risk of another sharp drawdown stays elevated.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!