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Herbalife Stock Plunges as CEO Stephan Gratziani Announces 2026 Departure
Herbalife Ltd. (NYSE:HLF) shares plunged 12.5% on Monday following the company's announcement that Chief Executive Officer Stephan Gratziani will step down from his role, effective October 31, 2026. The news introduces leadership uncertainty for the nutrition company, prompting a significant negative reaction from investors.
Leadership Transition Plan
The company stated that Gratziani will transition to a consultant role focusing on strategy and will also return his primary focus to his large independent distributorship. Herbalife's Board of Directors has established a committee to manage the succession process.
Beginning November 1, 2026, Chief Financial Officer John DeSimone will take over as Interim Chief Executive Officer. DeSimone is a long-tenured executive, having been with Herbalife for nearly 20 years in various senior leadership positions, including President and Chief Strategy Officer.
Financial Outlook Reaffirmed
Despite the executive transition, Herbalife reaffirmed its financial guidance for the third quarter and the full year of 2026. The company continues to project year-over-year net sales growth for both periods.
Key guidance figures remain unchanged:
Ad- Q3 2026 Adjusted EBITDA: $160 million to $180 million
- Full-Year 2026 Adjusted EBITDA: $670 million to $690 million
"Our outlook for the remainder of the year remains firmly on track," incoming Interim CEO John DeSimone said in the announcement.
Context of Gratziani's Tenure
Gratziani first joined Herbalife's executive team as Chief Strategy Officer in August 2023. His appointment came as the company was working to reverse a period of 12 consecutive quarters of decline in the post-pandemic era. According to the company's statement, the business has since returned to growth.
"With the business now having returned to growth and a strong foundation in place, this is the right time for the company to enter its next phase, with an increased focus on execution and operations," Gratziani stated.
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