Klarna Group Plc  (NYSE:KLAR) on Thursday reported first-quarter sales that topped Wall Street estimates.

Revenue rose 44% year over year to $1 billion, ahead of the analyst consensus estimate of $945.1 million. Gross merchandise value climbed 33% to $33.7 billion, supported by 39% growth in the U.S. and 31% growth outside the U.S.

“Klarna addresses the entire consumer wallet: Pay Now for everyday spending and saving, Pay Later our charge card equivalent at 0% interest for mid-size ticket spending, and POS installments (Fair Financing) for big-ticket purchases. In Q1 we executed well across all the business, driving every line of our P&L and compounding growth across our global network. Growing network. Same three products. Deeper consumer engagement,” said Sebastian Siemiatkowski, CEO and co-founder of Klarna.

Klarna reaffirmed its full-year 2026 outlook, projecting GMV above $155 billion while continuing to focus on transaction margin dollar growth and payment monetization expansion.

For the second quarter, the company forecast revenue between $960 million and $1 billion, below the analyst consensus estimate of $1.065 billion.

Klarna Group shares fell 8.4% to trade at $15.08 on Friday.

These analysts made changes to their price targets on Klarna Group following earnings announcement.

  • BMO Capital analyst Andrew Bauch maintained Klarna with a Market Perform and raised the price target from $16 to $17.
  • Wells Fargo analyst Jason Kupferberg maintained the stock with an Overweight rating and lowered the price target from $32 to $26.
  • Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained Klarna with an Outperform rating and raised the price target from $22 to $26.

Considering buying KLAR stock? Here’s what analysts think:

Photo via Shutterstock