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

Klarna Group plc (NYSE:KLAR)’s share price gapped up before the market opened 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 changing hands.

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

More Klarna Group News

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

Wall Street Analyst Weigh In

KLAR has been the topic of several research reports. Keefe, Bruyette & Woods lowered their price objective on shares of Klarna Group from $45.00 to $26.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. JPMorgan Chase & Co. lowered their target price on shares of Klarna Group from $40.00 to $20.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Wells Fargo & Company cut their price target on Klarna Group from $45.00 to $32.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. 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 objective for the company. Finally, Morgan Stanley cut their target price 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. Eleven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $35.71.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KLAR. SC US Ttgp LTD. bought a new position in shares of Klarna Group in the third quarter valued at approximately $2,016,821,000. Commonwealth Bank of Australia bought a new stake in shares of Klarna Group in the 4th quarter worth approximately $503,243,000. Wellington Management Group LLP purchased a new position in Klarna Group in the 3rd quarter worth $348,834,000. Scge Management L.P. bought a new position in shares of Klarna Group during the third quarter valued at about $193,018,000. Finally, HarbourVest Partners LLC purchased a new position in shares of Klarna Group in the third quarter worth about $184,105,000.

Klarna Group Trading Up 14.9%

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

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.