Hims & Hers Climbs 6% Despite Five States Joining FTC Suit; Eli Lilly Dips, Novo Nordisk Holds Steady
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A partial rebound is under way at Hims & Hers (NYSE:HIMS), even as the company’s legal fight with federal regulators extends. Hims & Hers stock is at $20.34 in afternoon trading, up 6%. That gain follows a 17% drop on November 10. Over the past month, HIMS stock is down 34%.
The rebound arrives despite fresh problems that landed after the November 10 close. Reuters reported that evening that five U.S. states joined the Federal Trade Commission’s (FTC) lawsuit against Hims & Hers over its privacy practices, and that the expanded case also covers the company’s billing practices. KeyBanc kept its Sector Weight rating on Hims & Hers and called the period ahead a “transition year,” expecting lower pricing to weigh on the company’s fiscal 2027 and 2028 earnings outlook as artificial intelligence (AI) investments rise.
Why Hims & Hers Sold Off Before the Bounce
Hims & Hers disclosed on November 9 that its third-quarter 2026 (Q3 2026) revenue rose 48.6% year over year (YoY) to $890.37 million, missing the analyst consensus of $892.77 million, alongside a surprise generally accepted accounting principles (GAAP) loss of $0.14 per diluted share. On the outlook, Hims & Hers guided Q4 2026 revenue to $875 million to $895 million, well below the analyst consensus of $954.58 million, and cut its full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) outlook to $257 million to $277 million.
Bargain hunters appear to be stepping into Hims & Hers after that steep slide. The move comes even as Chicago Federal Reserve President Austan Goolsbee described the latest inflation data as “borderline disturbing” while the Fed weighs more rate increases.
Lilly and Novo Nordisk Leave the Bounce to Hims & Hers
Eli Lilly (NYSE:LLY | LLY Price Prediction) stock is at $1,424.56, down 0.5%. Meanwhile, Novo Nordisk (NYSE:NVO) stock is at $40.72, up 0.1%. Both drugmakers supply the branded glucagon-like peptide-1 (GLP-1) weight-loss drugs that Hims & Hers is shifting toward, with Novo Nordisk’s Wegovy pen and pill already available and Lilly’s Zepbound and oral Foundayo planned under a recently announced agreement.
Lilly’s slip and Novo Nordisk’s small gain point to a rebound that’s specific to Hims & Hers. That difference matters because the telehealth company’s growth plan now runs through both suppliers’ products, while both supplier stocks trade roughly flat.
How Hims & Hers Differs From Its GLP-1 Suppliers
Hims & Hers runs a subscription telehealth platform that pairs online consultations with prescription delivery across weight loss, hair, sexual health and testosterone care. CEO Andrew Dudum framed the model in the company’s Q3 release: “In healthcare, whoever owns the customer relationship wins, and that’s exactly what we’re building toward at Hims & Hers.” On the November 9 call, Dudum acknowledged the trade-off behind pulling back domestic weight-loss marketing: “Each of these choices trades near-term subscriber growth for a stronger position in the years that follow.”
Lilly and Novo Nordisk sit upstream as drug developers and manufacturers, earning their returns on patented molecules, global production scale and insurance coverage. Novo Nordisk has announced a U.S. list price cut for Wegovy and Ozempic starting January 1, 2027, a change that could reshape what self-pay customers spend. Hims & Hers, by contrast, depends on supplier pricing to build margin on its branded offering, which management blamed for much of its gross-margin squeeze.
What Comes Next for the Hims & Hers Rebound
Hims & Hers now faces the question of whether subscriber growth recovers once the company leans back into marketing behind its broader branded lineup, with management expecting those benefits to begin in Q1 2027. Supporters can point to the Lilly agreement, faster international expansion and management’s expectation of positive free cash flow for full-year 2026. Weighing against the stock are the expanding FTC case, margin pressure from branded drugs and KeyBanc’s warning that lower pricing could weigh on future earnings.
A one-day bounce can fade quickly if the legal or margin picture worsens for Hims & Hers. Developments in the expanded FTC case are worth tracking closely as HIMS stock could move quickly in either direction.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk. His work has appeared in 24/7 Wall St., The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, MarketScreener, TalkMarkets, Finmasters, and others. With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
