Key Takeaways:
- Earnings Timeline Update: On February 23, 2026, Hims & Hers Health stock reports Q4 and full-year 2025 results, setting expectations after revenue reached about $2 billion LTM and margins turned positive.
- Broker Repricing Event: On January 6, 2026, TD Cowen cut its Hims & Hers Health stock target to $37 from $48, citing valuation despite shares rising about 34% in 2025.
- Price Target Framework: Based on sustained revenue growth near 30% and operating margins above 5%, Hims & Hers Health stock could reach $38 by late 2027 under a normalized multiple.
- Upside Math: From a current price near $26, the $38 target implies about 43% total upside and roughly 21% annualized returns for Hims & Hers Health stock.
Hims & Hers Health (HIMS) sells digital-first healthcare subscriptions across sexual health, dermatology, and wellness, serving millions of users with a market value near $6 billion.
On February 23, 2026, Hims & Hers Health reports full-year results after expanding into at-home testing and lab services to deepen personalization.
Revenue of HIMS stock reached about $2 billion LTM, showing scale benefits as recurring prescriptions and direct-to-consumer fulfillment drive repeat purchasing behavior.
Meanwhile, HIMS stock’s operating profit reached roughly $0 billion LTM with operating margins near 6%, indicating cost discipline after years of heavy customer acquisition spending.
Hims & Hers Health stock trades near $26 per share while valuation debates persist around a $38 modeled target, creating tension between execution progress and pricing.
What the Model Says for HIMS Stock
The model ties Hims & Hers Health stock revenue scaling and cost control to improving operating leverage and future shareholder returns.
Using 30% revenue growth, 5% operating margins, and a normalized 27x exit multiple, the model values Hims & Hers Health stock higher.
The model points to a $38 target price, representing 43% total upside and a 21% possible annual return.
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for HIMS stock:
1. Revenue Growth: 30.3%
Hims & Hers Health revenue reached about $2 billion LTM after rising from under $1 billion in 2023, establishing a high-growth baseline.
Subscription refills, expanding care categories, and lab testing add repeat demand, supporting faster growth than traditional healthcare distribution models.
Growth risks include marketing efficiency and regulatory limits, while support comes from direct distribution control and expanding product breadth.
According to consensus analyst estimates, 30.3% revenue growth balances recent scale momentum against slowing comparisons as the business matures.
2. Operating Margins: 5.1%
Hims & Hers stock’s operating margins improved from negative levels in 2023 to about 6% LTM as fixed costs scaled.
Gross margins near 75% provide room for profitability as marketing intensity moderates and fulfillment volumes rise.
Margin limits include customer acquisition costs and care delivery expenses, while scale benefits improve unit economics over time.
In line with analyst consensus projections, 5.1% operating margins reflect early profitability with room for gradual improvement.
3. Exit P/E Multiple: 26.7x
HIMS stock traded near 40x earnings previously, then compressed as investors reassessed growth durability and profitability timing.
The current valuation reflects caution despite positive earnings, recurring revenue, and expanding care services improving earnings visibility.
Sustaining growth above 30% and margins above 5% is required to support premium valuation over the next cycle.
Based on street consensus estimates, a 26.7x exit multiple supports a $37.75 target price, 43% total upside, and a 21% possible annual return.
What Happens If Things Go Better or Worse?
Hims & Hers Health’s outcomes depend on subscriber retention, category expansion, and marketing efficiency, setting up a range of possible paths through 2029.
- Low Case: If demand cools and marketing efficiency stalls, revenue grows around 18.5% and margins stay near 9.3% → 10.3% annualized return.
- Mid Case: With core categories performing steadily, revenue growth near 20.5% and margins improving toward 10.1% → 19.6% annualized return.
- High Case: If personalization and labs scale efficiently, revenue reaches about 22.5% and margins approach 11.0% → 29.2% annualized return.
How Much Upside Does It Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
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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 stocks mentioned. Thank you for reading, and happy investing!
