Hims & Hers Health (HIMS) stock closed at $31.75 on Tuesday, up 2%, as Truist Securities updated its financial model for the telehealth company following a review of proprietary card data and Q2 2026 earnings disclosures.
Hims & Hers Health, Inc., HIMS
Truist analyst Jailendra Singh reiterated a Hold rating on HIMS while raising the price target to $32 from $27.
The firm now estimates U.S. GLP-1 revenue of $1.2 billion for 2026, up from a prior estimate of $1.14 billion and compared to $802 million in 2025.
Truist expects weight-loss medications to make up nearly 40% of total annual revenue this year. The firm’s full-year revenue estimate sits at $3.159 billion, landing in the lower half of the company’s own guidance range of $3.1 billion to $3.3 billion.
In a shift from its previous model, Truist now expects compounded GLP-1 sales to lead the way. The firm estimates $625 million in revenue from compounded drugs, slightly ahead of $578 million from branded prescriptions.
That’s a change from Truist’s earlier view, which had branded prescriptions coming out on top.
Singh points to two reasons for the revision. First, customer retention in the compounded business came in higher than expected. Second, new membership growth on the branded side has slowed.
“Any incremental improvement in retention should be beneficial to HIMS overall revenue and profitability,” Singh wrote.
Truist expects margins to improve in the second half of 2026. Adjusted EBITDA margins on compounded prescriptions are projected at 18.5%, up from 15.5% in Q2. Branded medication margins are seen at 16.5%, compared to just 5% in Q2.
Within branded revenue, Truist estimates 55% or $320 million is tied to the cost of the medication itself, with the remaining 45% coming from customer membership fees.
The company reported Q2 revenue of $753 million, up 40% year over year, beating Wall Street expectations. It posted a loss of $0.37 per share, which was wider than anticipated.
During the Q2 earnings call, CFO Yemi Okupe called the company’s March expansion of branded weight-loss offerings a “key driver” of Q2 growth.
Analyst views on HIMS are mixed. Needham raised its price target to $42, citing strong Q2 results and a Novo Nordisk partnership. Canaccord Genuity kept its Buy rating with a $40 target. Barclays cut its target to $35 from $39, flagging margin pressure.
HIMS has posted 28% revenue growth with a 69.5% gross profit margin, and analysts broadly expect the company to reach profitability this year.
The stock has gained 13.5% over the past week. Truist’s card data suggests that retention among existing branded members remains strong.
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