What happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) fell 18.5% in the afternoon session after the company reported its financial results for the third quarter of 2026, and provided sales guidance for the next quarter below expectations.
According to a company press release, Hims & Hers Health reported third-quarter 2026 revenue of $890.4 million, up 48.6% year over year, and GAAP earnings per share of negative 14 cents. While revenue was in line with analyst estimates of $892.5 million, GAAP earnings per share was below analyst estimates of 6 cents per share. The company expected fourth-quarter 2026 revenue of $885 million at the midpoint and full-year EBITDA of $267 million at the midpoint, while customer count declined to 2.79 million from 2.89 million in the previous quarter.
Both forecasts were below analyst estimates of $953.1 million for revenue and $294.3 million for EBITDA. Additionally, third-quarter adjusted EBITDA of $82.39 million was below analyst estimates of $85.36 million.
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What is the market telling us
Hims & Hers Health’s shares are extremely volatile and have had 71 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 6.7% on the news that election results confirmed that Democrats reclaimed majorities in the House and Senate, easing regulatory uncertainty around drug pricing policy.
As reported by CNBC, Wall Street analysts project that the biopharmaceutical sector's recovery will strengthen in the wake of the congressional election outcome. Investors had feared potential disruptions to healthcare policies, but analysts noted that drug pricing legislation is unlikely to dominate the new legislative agenda. Prior statutory frameworks already established expanding annual Medicare price negotiations, meaning existing government policies will remain intact without unexpected new restrictions.
Furthermore, broader equity markets and index futures rebounded as investors interpreted the shifting balance of power in Washington as a stabilizing dynamic. The presence of congressional checks and balances is widely viewed by market strategists as a moderating force on executive policy decisions, creating a predictable regulatory climate that supports ongoing investments across pharmaceutical and biotechnology developers.
Hims & Hers Health is down 43.8% since the beginning of the year, and at $18.79 per share, it is trading 54.2% below its 52-week high of $41.05 from November 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $2,343.
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