Klarna Group plc (NYSE:KLAR) on Tuesday reported upbeat second-quarter results but issued 2026 sales guidance that missed expectations.

Klarna reported earnings of 1 cent per share, beating the consensus estimate for a loss of 5 cents per share. Revenue rose 27% year over year to $1.042 billion, beating the $993.39 million analyst estimate.

For 2026, the company expects revenue of $4.08 billion to $4.16 billion, missing the $4.415 billion analyst estimate.

Klarna raised its transaction margin dollar forecast to $1.62 billion to $1.65 billion, or about 1.09% of GMV. Adjusted operating income is expected to range from $280 million to $300 million, representing 6.9% to 7.2% of revenue.

“Over 120 million consumers now use Klarna, and each is using it for more of their everyday spend — revenue per active consumer grew 24%. That deepening engagement is why transaction margin dollars grew 42%, well ahead of revenue and volume. We measure our progress in transaction margin dollars.”

Klarna Group shares fell 2.2% to trade at $14.72 on Wednesday.

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

• Wells Fargo analyst Jason Kupferberg maintained the stock with an Overweight rating and lowered the price target from $26 to $21.
• Barclays analyst Nik Cremo maintained the stock with an Equal-Weight rating and cut the price target from $20 to $16.

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

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