Herbalife (HLF) Q1 EPS Margin Strain Keeps Bearish Narratives In Focus

Herbalife (HLF) opened 2026 with Q1 revenue of US$1.3b and basic EPS of US$0.60, setting the tone for how the year might unfold around its margin story. The company has seen quarterly revenue move from US$1.21b in Q4 2024 to US$1.22b in Q1 2025 and then to US$1.32b in Q1 2026, while basic EPS over those same quarters shifted from US$1.76 to US$0.50 and then to US$0.60. This puts the focus firmly on how efficiently that top line is being converted into profit. With trailing 12 month net margins at 4.7% versus 5.7% a year earlier, this set of results keeps investor attention on whether future earnings growth can come through without further margin pressure.

See our full analysis for Herbalife.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the key bullish and bearish narratives investors follow around Herbalife.

Curious how numbers become stories that shape markets? Explore Community Narratives

TTM earnings of US$239.8m under pressure

• Over the last twelve months, Herbalife generated net income of US$239.8m on US$5.1b of revenue, with trailing earnings having declined at an 18.1% annual rate over five years while analysts in the data expect about 15.6% yearly earnings growth going forward.
• What stands out for a bullish view is that expected earnings growth is set against a mixed backdrop in the recent numbers:
  • Revenue over the trailing twelve months is US$5.1b with growth of 3.1% per year, which is below the 11.4% benchmark quoted for the broader US market.
  • Net margin over the last year was 4.7% compared with 5.7% the prior year, so any bullish case that leans on faster earnings growth is leaning against margin compression in the recent history.

Curious how these mixed growth and margin trends stack up against what other investors are saying about Herbalife right now? 📊 Read the what the Community is saying about Herbalife.

Valuation gap vs 6.2x P/E

• Based on the trailing earnings, Herbalife is trading on a P/E of 6.2x at a share price of about US$14.49. This is well below the Global Personal Products industry average P/E of 19.7x and the DCF fair value estimate of US$83.43 per share that is provided in the data.
• Supporters of a bullish angle often point to this kind of valuation gap, and the data here give them some numbers to work with but also some pushback:
  • The current share price is described as roughly 82.6% below the DCF fair value of US$83.43, which heavily supports the idea that the stock is priced cheaply relative to that model.
  • At the same time, the stock appears expensive versus the peer average P/E of about -15.8x in the data, so anyone relying on a simple “cheap P/E” story needs to weigh that against how unusual the peer multiple set looks.

Margins and balance sheet risks tied together

• Trailing revenue growth of 3.1% per year and a net margin of 4.7% compared with 5.7% a year earlier sit alongside flagged balance sheet issues, including negative shareholders’ equity and interest payments that are not well covered by earnings in the trailing data.
• Critics with a bearish stance will likely focus on how these figures interact, and the numbers here give that view some specific anchors:
  • With net income of US$239.8m on US$5.1b of revenue, the business is profitable, yet the margin compression from 5.7% to 4.7% makes it harder to argue that profitability is strengthening against those debt related concerns.
  • Negative shareholders’ equity and weak interest coverage in the trailing data mean that even modest margin pressure can matter, because there is less room for error if financing costs stay high relative to earnings.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Herbalife's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Given how mixed the picture is so far, it makes sense to move quickly, review the underlying figures yourself, and weigh both sides of the story with 2 key rewards and 2 important warning signs

See What Else Is Out There

Herbalife is facing margin pressure, TTM earnings that have trended lower over time, and balance sheet concerns around negative equity and weaker interest coverage.

If you are uneasy about those debt and margin pressures right now, it could be worth shifting focus toward companies in the solid balance sheet and fundamentals stocks screener (44 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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