Canaccord Reiterates ‘Buy’ Rating on Hims & Hers with $40 Target as Q2 Revenue Surges 40%
NEW YORK — Investment bank Canaccord Genuity has reiterated its Buy rating and $40.00 price target on Hims & Hers Health, Inc. (NYSE: HIMS) following the telehealth pioneer’s second-quarter 2026 financial report. Wall Street remains captivated by the company’s aggressive top-line expansion, which saw total quarterly revenue rocket 40% year-over-year to $753 million, beating consensus expectations by nearly 9%.
Despite posting a wider-than-expected net loss that initially triggered choppy after-hours trading, Canaccord analysts emphasized that Hims & Hers’ fundamental growth drivers—led by branded weight loss therapies, testosterone treatments, international expansion, and deep AI integration—are accelerating rapidly. With full-year 2026 revenue guidance raised to between $3.1 billion and $3.3 billion, Canaccord sees substantial upside potential from current trading levels near $31.45.
Key Financial Breakdown: Q2 2026 Performance
| Financial & Operational Metric | Q2 2026 Actual | Wall Street Consensus | YoY Change / Variance |
| Total Revenue | $753.0 million | $691.6 million | +40.0% (+8.9% Beat) |
| U.S. Revenue | $622.0 million | — | +16.0% (Excluding Eucalyptus) |
| International Revenue | $131.0 million | — | Significant Expansion |
| Adjusted EBITDA | $60.0 million | Above High End of Guidance | 8.0% Margin |
| Diluted Earnings Per Share (EPS) | -$0.37 | -$0.05 | -$0.32 Miss (GAAP) |
| Global Subscribers | ~3.0 Million | — | +300,000 Net Additions |
Revenue Outperformance vs. Earnings Noise
Hims & Hers generated $753 million in second-quarter revenue, comfortably clearing the upper boundary of company guidance and beating analyst estimates by 8.9%. Adjusted EBITDA reached $60 million, surpassing internal forecasts as subscriber acquisition momentum accelerated. The company added approximately 300,000 net new subscribers during the quarter, bringing its total global active subscriber base to nearly 3 million.
However, GAAP bottom-line results diverged sharply from top-line strength. Hims & Hers posted a GAAP net loss of $86 million, or -$0.37 per share, compared to Wall Street projections of -$0.05 per share. Management cited non-recurring legal and restructuring costs, acquisition-related transaction fees, gross margin compression from branded weight-loss offerings, and strategic investments in global infrastructure for the earnings miss.
Operating cash flow for the quarter stood at negative $36 million, with free cash flow at negative $68 million, reflecting capital outlays for international integration and digital health capabilities.
In its research note, Canaccord Genuity urged investors to look past near-term cash burn and accounting noise, highlighting that organic U.S. revenue growth re-accelerated to 16% year-over-year (excluding acquisitions). This marks a significant operational rebound from the high-single-digit decline recorded in the first quarter of 2026.
Branded Weight Loss & The Novo Nordisk Alliance
The central catalyst behind Hims & Hers’ domestic acceleration was its strategic March pivot toward branded weight-loss treatments, highlighted by a deepening relationship with pharmaceutical giant Novo Nordisk.
┌─────────────────────────────────────────────────────────┐
│ HIMS & HERS WEIGHT LOSS ENGINE │
└─────────────────────────────────────────────────────────┘
│
┌────────────────────┴────────────────────┐
▼ ▼
[NOVO NORDISK PARTNERSHIP] [AI PLATFORM INTEGRATION]
• Fulfilling Wegovy & Wegovy Pill • Automated 80% of customer Qs
• 125,000+ shipments fulfilled • Cut non-clinical tasks by 50%
• Named key access channel • Tripled messaging speed & volume
Novo Nordisk management recently identified Hims & Hers as one of its largest and fastest-growing access channels for the newly launched Wegovy oral pill. Within six weeks of launching direct access to Novo Nordisk’s GLP-1 portfolio, Hims & Hers fulfilled over 125,000 shipments of Wegovy products. Consumers have responded enthusiastically to the combination of clinical efficacy, competitive pricing, and streamlined access provided by the telehealth platform.
To support this massive influx of weight-loss patients, Hims & Hers deployed proprietary AI-native clinical tools. These automated solutions:
-
Tripled patient messaging capacity.
-
Successfully answered 80% of routine customer inquiries without human intervention.
-
Reduced non-clinical administrative tasks for healthcare providers by nearly 50%.
-
Lowered cancellation rates and improved long-term cohort retention across new app users.
Eucalyptus Acquisition Drives Global Footprint
International expansion represents another core pillar of Canaccord’s bullish thesis. In early June 2026, Hims & Hers finalized its acquisition of Eucalyptus, a leading digital health platform with strong positions across the United Kingdom, Australia, and Japan.
Despite contributing for only part of the quarter, Eucalyptus added approximately $40 million in international revenue. Total international revenue jumped to $131 million in Q2, up from nominal figures in the prior-year period.
Management confirmed that Hims & Hers now operates three international geographic markets pacing above a $100 million annual run rate (ARR). The company projects total international revenue to reach at least $600 million for full-year 2026, transforming Hims & Hers into a global consumer health platform.
Non-Weight-Loss Specialties: Testosterone Leads the Charge
While weight management dominated headline growth, non-weight-loss medical specialties continued to display strong underlying momentum.
Testosterone therapy has officially emerged as the company’s fastest-growing category outside of weight loss. Management expects testosterone treatment to become the company’s sixth U.S. specialty to surpass a $100 million annual revenue run rate.
This milestone underscores Hims & Hers’ successful diversification beyond its original heritage in hair loss and erectile dysfunction into a comprehensive primary and specialty care provider.
Forward Guidance and Market Sentiment
Demonstrating confidence in its multi-category growth engine, Hims & Hers raised its financial guidance across key metrics for the remainder of fiscal 2026:
-
Q3 2026 Revenue Outlook: Projected between $880 million and $900 million, with expected Adjusted EBITDA of $75 million to $95 million.
-
Full-Year 2026 Revenue Outlook: Raised to $3.1 billion – $3.3 billion (up from prior baseline targets).
-
Full-Year 2026 Adjusted EBITDA: Maintained at $275 million – $325 million.
┌─────────────────────────────────────────────────────────┐
│ FY 2026 OUTLOOK REVISION │
└─────────────────────────────────────────────────────────┘
Prior Revenue Target --> REVISED REVENUE TARGET
$2.8B – $3.0B $3.1B – $3.3B 🚀
(Adjusted EBITDA: $275M–$325M)
Despite the upbeat top-line guidance, short-term investor sentiment has faced headwinds. The stock experienced downward pressure following news of an FTC regulatory complaint filed in late July regarding marketing and subscription disclosure practices across direct-to-consumer health platforms. Additionally, following a 90% stock surge over the prior six months, valuation metrics tracked by InvestingPro indicate the stock currently trades slightly above fair value models based on near-term cash flows.
Canaccord Genuity noted that regulatory inquiries are common as consumer platforms scale to multi-billion-dollar volumes. The firm expects sentiment to normalise as gross margins stabilise in the second half of 2026 and international operational efficiencies take hold.
Long-Term Outlook
By combining AI infrastructure, global scale through Eucalyptus, and direct partnerships with top-tier pharmaceutical manufacturers like Novo Nordisk, Hims & Hers is executing a rapid transition from a niche telehealth service into a global consumer healthcare ecosystem.
Canaccord Genuity’s reiterated Buy rating and $40.00 price target reflects strong institutional conviction that Hims & Hers is uniquely positioned to capture market share in digital health, with expanding scale offsetting temporary margin headwinds.
