Hims & Hers HealthHIMS is scheduled to report third-quarter 2026 results on Nov. 9, after market close. The company is expected to deliver strong revenue growth in the third quarter of 2026, driven by continued momentum in weight loss, expanding international operations and growing contributions from newer specialties like testosterone replacement therapy. Improving subscriber retention and AI-led efficiencies are likely to have supported performance, although investments in technology and market expansion may have weighed on margins.
Investors will monitor domestic growth, subscriber additions, retention trends and gross margin performance. Management's commentary on AI-driven efficiencies, expansion of testosterone and peptide offerings, international growth and its ability to sustain EBITDA and free cash flow generation will also be key.
Over the past three-month period, HIMS shares declined 23.8%, underperforming the Zacks Medical Services industry and the S&P 500 Index, which advanced 19.3% and declined 5.6%, respectively.
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HIMS's Earnings Surprise History
HIMS beat on earnings in one of the trailing four quarters, missed thrice, delivering a negative average earnings surprise of 94.1%.
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HIMS's Q3 Consensus Estimate
The Zacks Consensus Estimate for third-quarter earnings is pegged at 7 cents per share, indicating growth of 16.7%. The earnings estimate has remained unchanged over the past seven days. The consensus estimate for revenues is pegged at $893.4 million, suggesting a 49.2% year-over-year improvement.
Quarterly Drivers
Weight Loss Momentum and Subscriber Growth:Hims & Hers' weight loss business is expected to have remained a key growth driver in the third quarter, supported by expanding branded offerings and the compounding contribution of monthly subscription cohorts. Improving customer engagement, stronger retention and continued subscriber additions are likely to have supported domestic revenue growth.
International Expansion and New Specialties:Growing contributions from Eucalyptus and continued expansion across the U.K., Germany, Australia, Canada and Japan are likely to have supported revenue growth. Strong momentum in testosterone replacement therapy, along with the planned expansion of AI-powered care experiences, might have further strengthened customer engagement and cross-selling opportunities.
Challenges
Gross Margin Pressure From Business Mix:Gross margin is expected to have remained under pressure from the increasing contribution of branded weight loss products and international operations, which carry lower margins than Hims & Hers' historical business mix. Management expects these mix-related headwinds to persist through the second half of 2026.
Higher Investments and Cash Flow Pressures:Continued investments in AI capabilities, international expansion and new specialty offerings are likely to have weighed on third-quarter profitability. Elevated working capital requirements associated with branded weight loss offerings may also have pressured cash flow, although management expects free cash flow generation to resume in the second half of 2026.
Hims & Hers Health, Inc. Price and EPS Surprise
Hims & Hers Health, Inc. price-eps-surprise | Hims & Hers Health, Inc. Quote
What Our Model Unveils for HIMS Stock
Our proven model does not conclusively predict an earnings beat for HIMS this earnings season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
Earnings ESP:Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank:HIMS has a Zacks Rank #3 at present.
Stocks to Consider
Some better-ranked stocks worth considering from the broader medical space are GlaukosGKOS, Edward LifesciencesEW and Globus MedicalGMED, each carrying a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Glaukos reported second-quarter 2026 earnings per share (EPS) of 14 cents, which beat the Zacks Consensus Estimate by 50.00%. Revenues of $186 million surpassed the Zacks Consensus Estimate by 24.1%.
Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS' earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 25.87%.
Edward Lifesciences reported second-quarter 2026 adjusted EPS of 78 cents, which beat the Zacks Consensus Estimate by 6.85%. Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 2.45%.
Edward Lifesciences has an estimated long-term earnings growth rate of 12.7%. EW's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.49%.
Globus Medical reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%.
Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%.
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Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
