Did Amazon Just Wreck All of Hims & Hers Upside Potential?
Did Amazon Just Wreck All of Hims & Hers Upside Potential?
Rich DupreyTue, April 21, 2026 at 4:04 PM UTC
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Hims & Hers Health (HIMS) reported $2.35B in 2025 revenue (59% growth), added 282,000 net subscribers to reach 2.5M active members, and swung to $128M net income, while guiding 2026 revenue of $2.7B-$2.9B with 72% gross margins. Amazon (AMZN) launched its One Medical GLP-1 program pairing prescriptions with primary care integration across 200+ offices, while Eli Lilly (LLY) is pushing Foundayo oral pills at $149 cash-pay through Amazon Pharmacy. Walmart (WMT) also recently entered the GLP-1 market with its own platform.
Amazon’s integrated primary care model and Walmart’s entry raised competitive pressure on Hims & Hers, but the company’s 2.5M-subscriber base with personalized care and matching Novo Nordisk pricing provide resilience against pure retail competitors.
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The GLP-1 weight-loss category exploded into a multi-billion-dollar opportunity that blends medication access with ongoing patient support. This morning, Amazon's (NASDAQ:AMZN) One Medical platform rolled out a national program that pairs GLP-1 prescriptions with primary care integration -- regular check-ins, lab monitoring, nutrition guidance, and management of related conditions like hypertension and diabetes.
This goes beyond Amazon's launch earlier this month of Eli Lilly’s (NYSE:LLY) oral pill Foundayo at $149 cash-pay. Hims & Hers Health (NYSE:HIMS) got hit hard, opening 10% lower on the news, though it has recovered much of the lost ground and is down only 4% heading into noon trading. Yet the reaction overlooks how Hims & Hers built a subscriber platform centered on convenience plus care, backed by its recent partnership with Novo Nordisk (NYSE:NVO) on branded Wegovy and Ozempic.
Amazon Raises the Competitive Bar
Amazon positions its approach as superior to siloed telehealth options. One Medical executives noted patients arriving “malnourished” or on improper doses from other providers, according to Axios. The program embeds GLP-1 treatment inside primary care across more than 200 offices in over 20 regions, with virtual and in-person options. Clinicians adjust doses based on full health profiles, while Amazon Pharmacy handles upfront pricing and delivery. Cash-pay starts at $149 for oral GLP-1s and $299 for injectables, or as low as $25 with insurance.
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Hims & Hers never competed on pills alone. It offers subscriptions with 24/7 care-team access, coaching, and provider-guided adjustments. Its Novo Nordisk collaboration delivers FDA-approved Wegovy and Ozempic at matching $149 cash prices, with seamless transitions from any compounded options. This matters because compounded versions faced regulatory scrutiny, yet Hims & Hers already proved demand: its non-compounded weight-loss segment reached a $100 million run rate in under seven months.
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The Numbers Still Favor Hims & Hers Resilience
Let’s examine the data. Hims & Hers reported $2.35 billion in 2025 revenue, up 59% from $1.48 billion in 2024. It added 282,000 net subscribers to reach 2.5 million active members and swung to $128 million net income. For 2026, management guided revenue of $2.7 billion to $2.9 billion -- 15% to 24% growth -- while projecting adjusted EBITDA of $300 million to $375 million. International revenue already jumped fivefold to $134 million.
Hims trailing P/E stands around 55x on $0.51 EPS -- elevated yet supported by 20%+ expected top-line expansion. Gross margins reached 72% in Q4 despite the branded mix shift, as quarterly revenue climbed 28% to $618 million. Amazon brings scale and physical offices that pure telehealth lacks, but Hims & Hers holds a 2.5 million-subscriber base with personalized follow-up that retailers cannot duplicate quickly. Non-GLP-1 categories still drive the majority of revenue and cash flow, providing a buffer.
That said, risks remain real. Amazon’s hybrid model could capture patients seeking integrated monitoring, and lower branded margins pressure profitability. Competition from Walmart’s (NYSE:WMT) recent GLP-1 platform adds further heat. In any case, Hims & Hers invested in international markets and new specialties to offset domestic pressures.
Key Takeaway
Amazon’s One Medical program hasn't wrecked Hims & Hers upside potential, but it intensified the fight by proving care integration matters as much as delivery speed. Still, the stock dip reflects headline sensitivity more than fundamentals. Hims & Hers is able to counter with matching pricing from Novo Nordisk, a massive subscriber base, and a full-care model of its own.
For retail investors, today’s weakness offers an entry point if you believe Hims' $2.7 billion to $2.9 billion revenue guidance will still materialize. It's not a back-up-the-truck moment, but don't set your hair on fire either. Platforms with sticky customer relationships can still win long-term, regardless of how retailers expand. The data still suggests Hims & Hers has a runway to growth in its future.
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Source: “AOL Money”
