Hims & Hers Health, Inc. (NYSE:HIMS) is a leading telehealth company that offers a wide range of health and wellness products and services. The company is dedicated to providing accessible healthcare solutions through its innovative online platform, catering to a growing subscriber base. HIMS is in competition with other telehealth providers, striving to capture a larger share of the burgeoning digital health market.
On February 24, 2026, Barclays set a price target of $25 for HIMS, suggesting a potential increase of approximately 57.18% from its current price of $15.91. This optimistic outlook is notable despite recent challenges faced by the company, such as a significant contraction in gross margin by 487 basis points to 71.9%, as highlighted in the company's latest financial results.
HIMS reported robust revenue growth in the fourth quarter of 2025, with revenues reaching $617.8 million, marking a 28.4% increase from the previous year. This growth was primarily driven by the momentum in its online channel and an expanding subscriber base of 2.5 million. However, the company's gross margin contraction and a softer outlook have somewhat dampened its stock performance.
The company reported quarterly earnings per share (EPS) of 7 cents, exceeding the Zacks Consensus Estimate of 2 cents, despite being lower than the previous year's EPS of 11 cents. For the full year, the EPS was 51 cents, surpassing the Zacks Consensus Estimate by 6.3%, although it reflected a 3.8% decrease from the prior year.
Looking ahead, Hims & Hers has guided its 2026 revenue to be between $2.7 billion and $2.9 billion. Despite the earnings beat, the slight miss on revenue expectations and margin contraction have clouded the company's quarterly performance. The stock is currently priced at $15.89, with a market capitalization of approximately $3.48 billion and a trading volume of 51.27 million shares.
