Klarna Group (NYSE:KLAR) Shares Gap Up on Better-Than-Expected Earnings

Klarna Group plc (NYSE:KLAR) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $13.69, but opened at $15.48. Klarna Group shares last traded at $15.8170, with a volume of 10,311,069 shares traded.

The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.12. Klarna Group had a negative return on equity of 11.62% and a negative net margin of 8.41%.The business’s revenue was up 42.7% compared to the same quarter last year.

Klarna Group News Summary

Here are the key news stories impacting Klarna Group this week:

• Positive Sentiment: Klarna reported its first-ever quarterly net profit, a meaningful milestone for profitability-focused investors. Klarna shares surge as it swings to first net profit
• Positive Sentiment: First-quarter revenue topped $1 billion and came in ahead of expectations, reinforcing that growth remains strong even as the company pursues profitability. Klarna Delivers Strong Start to 2026 With $1Bn Revenue and $68M Adj. Operating Profit
• Positive Sentiment: Klarna beat EPS estimates, reporting a smaller-than-expected loss, which suggests operating performance is improving faster than analysts anticipated. Klarna (KLAR) Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: Options activity was unusually heavy, with traders buying more call options than normal, which can signal increased bullish speculation around the stock.
• Neutral Sentiment: Klarna updated second-quarter 2026 guidance, but the provided details were incomplete, so investors may be waiting for clearer forward expectations.
• Neutral Sentiment: Analysts and market commentary are focusing on whether Klarna’s revenue growth can sustain while the company expands credit offerings and integrates with platforms like Google Pay. All eyes on Klarna earnings as credit push meets revenue test

Analyst Ratings Changes

KLAR has been the topic of a number of research analyst reports. Bank of America assumed coverage on Klarna Group in a report on Thursday, March 5th. They set a “buy” rating and a $21.00 price target on the stock. UBS Group reduced their price objective on Klarna Group from $46.00 to $20.00 and set a “buy” rating for the company in a research report on Friday, February 20th. Wells Fargo & Company cut their price target on shares of Klarna Group from $45.00 to $32.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Morgan Stanley dropped their price objective on Klarna Group from $39.00 to $23.00 and set an “equal weight” rating on the stock in a research report on Wednesday, February 18th. Finally, TD Cowen started coverage on Klarna Group in a research report on Monday. They issued a “hold” rating and a $16.00 target price for the company. Eleven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $35.71.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Global Retirement Partners LLC boosted its stake in Klarna Group by 800.0% in the 4th quarter. Global Retirement Partners LLC now owns 900 shares of the company’s stock worth $26,000 after purchasing an additional 800 shares during the period. Leonteq Securities AG purchased a new position in Klarna Group in the fourth quarter worth about $29,000. US Bancorp DE bought a new position in shares of Klarna Group during the 3rd quarter valued at approximately $30,000. BIT Capital GmbH bought a new position in Klarna Group during the third quarter valued at $37,000. Finally, Allworth Financial LP purchased a new stake in Klarna Group in the 3rd quarter worth about $37,000.

Klarna Group Price Performance

The stock has a market capitalization of $5.94 billion and a PE ratio of -20.43. The firm has a fifty day moving average price of $13.92 and a two-hundred day moving average price of $23.17.

About Klarna Group

Klarna Group is a global payments provider specializing in “buy now, pay later” (BNPL) solutions for online and in-store shoppers. The company partners with merchants to offer flexible payment options, including interest-free installments and deferred payments, aiming to enhance conversion rates and customer loyalty. Klarna’s platform integrates risk assessment, fraud prevention, and a one-click checkout experience to streamline transactions for both retailers and consumers.

Through its digital wallet and mobile app, Klarna enables users to manage purchases, track spending and access exclusive shopping offers from partner merchants.