Abstract

Herbalife Ltd. will report fourth-quarter 2025 results on February 18, 2026, Post Market, and consensus modeling points to modest revenue growth alongside stronger earnings momentum, setting expectations for improving profitability despite uneven regional demand and foreign-exchange headwinds.

Market Forecast

Consensus projections for Herbalife Ltd.’s fourth quarter indicate revenue of 1.24 billion US dollars, adjusted EPS of 0.43 US dollars, and EBIT of 113.91 million US dollars; year-over-year growth is forecast at 4.17% for revenue, 94.16% for EPS, and 30.97% for EBIT. Margin guidance for the quarter has not been formally disclosed, but the focus remains on earnings leverage from mix, pricing discipline, and cost control, with gross profit margin performance watched closely following recent resilience. Herbalife’s Weight Management franchise remains central to near-term results, with management attention on product mix and promotional cadence that sustain engagement while protecting margin. Energy, Sports and Fitness stands out as the segment with the most runway for incremental growth, supported by cross-category adoption; it contributed 158.70 million US dollars in the last quarter, while segment-level year-over-year data was not available in the collected materials.

Last Quarter Review

In the third quarter of 2025, Herbalife delivered revenue of 1.27 billion US dollars, a gross profit margin of 45.02%, GAAP net profit attributable to the parent company of 43.20 million US dollars, a net profit margin of 3.39%, and adjusted EPS of 0.50 US dollars; year-over-year, total revenue rose 2.69% and adjusted EPS declined 12.28%. Quarter-on-quarter net profit declined by 12.37%, reflecting mixed regional trends and higher promotional intensity that tempered margin expansion despite healthy gross profitability. By segment, Weight Management generated 699.30 million US dollars, Targeted Nutrition 376.30 million US dollars, Energy, Sports and Fitness 158.70 million US dollars, Outer Nutrition 19.50 million US dollars, and Literature, Promotion and Other 19.90 million US dollars; segment-level year-over-year rates were not reported in the collected data.

Current Quarter Outlook

Weight Management: Core revenue engine with disciplined mix and promotional strategy

Weight Management remains the pivotal contributor to Herbalife’s quarterly performance, and the revenue base from the prior quarter at 699.30 million US dollars underscores the scale that drives operating leverage. For the current quarter, management’s focus is expected to revolve around calibrating promotional intensity to sustain distributor activity, while maintaining price integrity that supports gross margin at or near recent levels. Seasonality can affect order patterns, yet a normalized cadence in subscriber and distributor engagement typically mitigates volatility through cross-program offerings and bundled solutions. In a quarter aiming for 4.17% year-over-year total revenue growth, aligned execution in Weight Management will be essential for achieving projected EPS expansion of 94.16%, as incremental margin capture is strongly tied to mix optimization and effective regional pricing, especially in markets that experienced FX pressure last quarter. Operationally, cost discipline in procurement and logistics helps stabilize gross margin, enabling favorable flow-through to EBIT, which consensus models see expanding 30.97% year-over-year; that uplift depends on limiting promotional leakage and ensuring consistent sell-through in high-demand SKUs.

Energy, Sports and Fitness: Category expansion and cross-selling underpin growth potential

Although smaller in absolute terms than Weight Management, Energy, Sports and Fitness posted 158.70 million US dollars last quarter and remains the most promising area for incremental growth given higher-frequency consumption patterns and the potential for bundle-led cross-selling. In the current quarter, expansion of usage occasions and the integration of sports-focused formulations into daily routines can support order volume resilience, even if broader consumer discretionary trends are mixed. Execution risk centers on maintaining product availability and timely updates to formulations and flavors that keep engagement high without a significant rise in promotional costs. From a profitability standpoint, the category can contribute to EBIT uplift if mix includes higher-margin products and if scale benefits in manufacturing are realized, complementing the overall EPS trajectory implied by consensus. With total-company revenue projected to increase 4.17% year-over-year, incremental wins in Energy, Sports and Fitness can disproportionately amplify earnings given the leverage observed when promotional intensity is balanced with consistent repeat purchase behavior.

Key stock price drivers this quarter: earnings leverage, FX, and regional performance mix

Herbalife’s stock price reaction on February 18, 2026 will likely hinge on confirmation of earnings leverage consistent with the forecasted 94.16% year-over-year EPS increase, particularly if EBIT growth of 30.97% is matched by stable or improving gross margin. Foreign-exchange volatility remains a potential swing factor; last quarter’s margin resilience coexisted with uneven FX translation effects, and a more favorable currency backdrop would support reported revenue and gross margin comparability. Regional performance mix is another determinant: if higher-margin regions outpace lower-margin markets, net margin can lift beyond the prior quarter’s 3.39%, reinforcing the narrative of improving profitability. The quarter-on-quarter net profit decline of 12.37% in the last period puts a premium on showing sequential re-acceleration; commentary around distributor productivity, order frequency, and product availability will be scrutinized for signs of momentum. Liquidity and balance sheet discipline—including interest expense management—can further shape EPS outcomes, and investors will track any updates to cost containment measures that sustain operating efficiency without constraining sales activation.

Analyst Opinions

Across the materials collected in the January 1, 2026 to February 11, 2026 window, formal pre-earnings notes and explicit rating changes tied to Herbalife were limited, yielding a neutral tilt in accessible sentiment as institutions appear to rely on consensus modeling rather than issuing fresh directional calls. The neutral stance is consistent with projected revenue growth of 4.17% and strong EPS expansion of 94.16% year-over-year, a profile that blends constructive earnings momentum with tempered top-line expectations. The prevailing view emphasizes the importance of demonstrating sequential recovery from last quarter’s 12.37% net profit decline, as validation of EBIT growth near 30.97% year-over-year can strengthen confidence in margin durability. In this context, sentiment leans toward a “wait-and-see” posture for the print, where consistent gross margin performance and stable distributor activity are seen as prerequisites for a sustained re-rating. The majority neutral perspective thus centers on whether Herbalife can translate improved earnings efficiency into more robust revenue acceleration, with the report’s commentary on regional order trends, FX translation, and promotional balance expected to determine the near-term trajectory.