Hims & Hers Faces A ‘Transition Year’ Amid Increasing AI Investments, Says KeyBanc – Expects Lower Pricing To Weigh On FY2027-2028 Earnings Outlook

• The brokerage reiterated its ‘Sector Weight’ rating on HIMS but did not provide a price target.
• The stock has a 12-month price target of $28.85.
• Hims & Hers reported a 49% increase in third-quarter (Q3) revenue to $890.4 million but posted a $33 million net loss.

Hims & Hers (HIMS) remained on investors’ radar on Wednesday, with KeyBanc saying 2026 could be a transition year for the telehealth firm amid investments in artificial intelligence, new treatments, and international expansion.

According to Investing.com, analyst Justin Patterson said Hims & Hers’ focus on lower treatment prices could eventually attract more subscribers and increase the number of treatments per customer. However, he cautioned that it remains early to assess the benefits, with these initiatives likely weighing on revenue and adjusted EBITDA forecasts for 2027 and 2028.

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The brokerage reiterated its ‘Sector Weight’ rating on HIMS but did not provide a price target. The stock has a 12-month price target of $28.85, while 12 of the 15 analysts covering the stock have rated it a ‘Hold,’ according to Koyfin. Three analysts have a ‘Buy’ rating.

HIMS stock was up 2% at the time of writing, having crashed about 16.6% in the previous session.

Subscriber Growth Slows Sequentially

Hims & Hers reported a 49% increase in third-quarter (Q3) revenue to $890.4 million but posted a $33 million net loss. While subscribers rose 13% year-over-year to 2.79 million, the figure declined from 2.89 million in Q2, partly due to reduced marketing spending.

The company lowered its FY2026 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) guidance to $257 million to $277 million from $275 million to $325 million and narrowed its revenue outlook to $3.13 billion to $3.15 billion.

Focus On AI And Expansion

Hims & Hers is expanding its AI-powered healthcare platform, which reached 70% of its weight-loss subscribers as of Sept. 30.

“This AI-native experience reached 70% of weight loss subscribers as of quarter end, and we anticipate it reaching nearly 100% of weight loss subscribers before the end of the year,” CFO Yemi Okupe said in a call with analysts.

Q3 International revenue surged 321% to $233.3 million, supported by acquisitions and expansion across the UK, Germany and Australia. Management said international revenue was on track to exceed a $1 billion annualized run rate in 2027.

Retail Remains ‘Extremely Bullish’ Despite Sharp Selloff

Retail sentiment surrounding HIMS remained ‘extremely bullish’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user expects a reversal on Wednesday, with the stock closing in the $21 to $22 range.

HIMS shares have slumped nearly 43% so far in 2026.

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