Hims & Hers Health (NYSE:HIMS) Exceeds Q2 CY2026 Expectations But Stock Drops

Telehealth company Hims & Hers Health (NYSE:HIMS) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 38.2% year on year to $753.2 million. On top of that, next quarter’s revenue guidance ($890 million at the midpoint) was surprisingly good and 12.4% above what analysts were expecting. Its GAAP loss of $0.37 per share was significantly below analysts’ consensus estimates.

Is now the time to buy Hims & Hers Health? Find out by accessing our full research report, it’s free.

Company Overview

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Hims & Hers Health’s 67.5% annualized revenue growth over the last five years was incredible. Its growth surpassed the average healthcare company and shows its offerings resonate with customers, a great starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Hims & Hers Health’s annualized revenue growth of 55.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

We can better understand the company’s revenue dynamics by analyzing its number of customers, which reached 2.89 million in the latest quarter. Over the last two years, Hims & Hers Health’s customer base averaged 25.1% year-on-year growth. Because this number is lower than its revenue growth, we can see the average customer spent more money each year on the company’s products and services.

This quarter, Hims & Hers Health reported wonderful year-on-year revenue growth of 38.2%, and its $753.2 million of revenue exceeded Wall Street’s estimates by 7.8%. Company management is currently guiding for a 48.6% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 25.7% over the next 12 months, a deceleration versus the last two years. Still, this projection is healthy and indicates the market sees success for its products and services.

ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.

These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.

Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

Hims & Hers Health’s high expenses have contributed to an average operating margin of negative 2.3% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out.

On the plus side, Hims & Hers Health’s operating margin rose by 17.1 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming into its more recent performance, however, we can see the company’s margin has decreased by 7.1 percentage points on a two-year basis. Given its business quality, we’re optimistic that Hims & Hers Health can correct course and return to expansion.

Hims & Hers Health’s operating margin was negative 12.9% this quarter.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although Hims & Hers Health’s full-year earnings are still negative, it reduced its losses and improved its EPS by 2% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. We hope to see an inflection point soon.

In Q2, Hims & Hers Health reported EPS of negative $0.37, down from $0.17 in the same quarter last year. This print missed analysts’ estimates. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.

Key Takeaways from Hims & Hers Health’s Q2 Results

We were impressed by how significantly Hims & Hers Health blew past analysts’ revenue expectations this quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. On the other hand, its EPS missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, we think this was still a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 5.3% to $30.21 immediately after reporting.

Is Hims & Hers Health an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).