Weight-loss pill rivals punished by investors as margin pressure mounts

Shares of Hims & Hers Health and Novo Nordisk declined following their respective earnings updates, despite both companies reporting strong revenue growth and raising annual guidance. The market reaction was driven by investor concerns over rising costs and margin compression within the competitive GLP-1 weight-loss pill sector.

Hims & Hers Health reported second-quarter revenue of $753.2 million, a 38% increase that exceeded the $699 million analyst consensus. However, the telehealth company swung to a net loss of $127.9 million, compared with a $43.5 million profit in the same period last year. The loss was significantly worse than the 5-cent-per-share loss analysts had expected.

The company’s gross margin fell for a fourth consecutive quarter as the push into branded GLP-1 drugs and international markets drove cost of revenue up sharply. CFO Yemi Okupe indicated that margins will likely stay below historical levels going forward. Hims & Hers raised its full-year revenue outlook to between $3.1 billion and $3.3 billion, with third-quarter guidance of $880 million to $900 million topping the $792 million analysts expected.

Novo Nordisk’s Wegovy pill sales of 3.22 billion kroner missed analyst expectations of 3.33 billion kroner. The company updated its guidance to anticipate adjusted sales and operating profit down 6% to flat, an improvement from its prior range of down 4% to 12%. Novo Nordisk flagged an impending sales decline in its US business due to increased competition and lower realised prices tied to its pricing deal with the Trump administration.

Hims & Hers Health’s subscriber count grew 19% to 2.89 million, with monthly revenue per average subscriber rising 21% to $92. Novo Nordisk’s Wegovy pill has exceeded 5 million prescriptions since its launch in January. Hims & Hers Health is currently facing a lawsuit from the Federal Trade Commission regarding alleged misuse of user data, which the company disputes.

Hedge fund holdings for Hims & Hers Health increased to 43 funds in the first quarter of 2026, while Novo Nordisk remained at 55 holders. Both remain modest hedge fund positions relative to their public profiles in the fast-growing weight-loss category.