Hims & Hers Faces Growth Headwinds After Strategic Shift

The investment thesis for telehealth provider Hims & Hers is undergoing a significant reassessment. Market sentiment has cooled following the definitive end of a key pharmaceutical partnership and a notable deceleration in its growth trajectory. Analysts are now marking down their expectations, pointing to a year of transition in 2026 characterized by heightened investment and margin pressure.

A major development reshaping the company's future is the confirmed dissolution of its partnership with Novo Nordisk. Contrary to earlier market speculation, the collaboration was terminated in June 2025. Novo Nordisk cited concerns over "illegal mass compounding" and "misleading marketing" of semaglutid-based products.

This split was effectively cemented in January 2026, when Hims & Hers was absent from Novo Nordisk's new partner list for the launch of an oral Wegovy pill. Consequently, the company no longer has access to official distribution channels for in-demand, branded GLP-1 weight-loss medications. Its strategy is now fully pivoted toward its own compounded alternative drugs. This path carries ongoing regulatory risks and denies the firm the high-margin revenue from original patented pharmaceuticals.

Financial Forecasts Downgraded

This strategic shift is directly impacting financial projections. Major financial institutions have recently revised their outlooks, reflecting a more cautious stance.

On January 20, Morgan Stanley maintained an "Equal-weight" rating but paired it with a substantially tempered growth forecast. The firm now anticipates revenue growth of approximately 17% for 2026. This marks a stark contrast to the triple-digit growth rates seen at times in 2025. The previous cycle of exceeding expectations and subsequently raising guidance—the "beat-and-raise" pattern—appears to have halted after performance lagged in late 2025.

Should investors sell immediately? Or is it worth buying Hims & Hers?

An even more skeptical view comes from Bank of America Securities, which reaffirmed an "Underperform" rating with a $29 price target. Their analysis frames 2026 as a year of significant investment, where increased spending on technology and personnel is expected to pressure profitability without generating a commensurate near-term revenue boost.

Market Performance and Technical Outlook

These fundamental concerns are already reflected in the stock's market performance. Since the start of the year, shares have declined by roughly 8%. The current price, hovering around $31.50, represents a drop of more than 50% from the 52-week high of $68.74 reached in February 2025.

From a technical analysis perspective, the $30 level is a critical focal point, representing a key support zone. Several failed breakout attempts in late 2025 created additional supply pressure at higher price levels. The absence of a clear catalyst, such as a new partnership for branded GLP-1 drugs, has kept many institutional investors on the sidelines.

Key Financial Metrics (Current)

• Current Share Price: ~$31.50
• 52-Week High: $68.74
• Projected 2026 Revenue Growth: ~17% (Morgan Stanley estimate)
• Analyst Consensus: Leaning negative to neutral (Zacks Rank #4 Sell)
• Notable Resistance Level: $35.00

A New "Show-Me" Phase Begins

The previous investment narrative, heavily reliant on the potential for a renewed alliance with Novo Nordisk, has now run its course. The company must demonstrate that its core business and proprietary compounding solutions can sustain attractive growth levels independently.

With the clear rejection from Novo Nordisk, reduced growth projections near 17% for 2026, and anticipated margin compression, Hims & Hers stock has entered a pronounced "show-me" phase. The primary driver for its share price moving forward will be its ability to establish stable business momentum throughout 2026 without the tailwind of a major pharmaceutical partner.