KLAR Stock Set For Biggest Single-Day Slump In Six Months On Lowering FY 2026 Guidance – Retail Sees ‘Buying Opportunity’

Klarna Group shares (KLAR) fell more than 19% in pre-market trading on Tuesday, putting the stock on course for its sharpest single-day decline in nearly six months after the financial technology company reduced its FY 2026 outlook. Klarna cut gross merchandise value (GMV) guidance to $149 billion-$151 billion from more than $155 billion previously. Currency movements accounted for roughly $600 million of the reduction across Europe, the U.K. and other markets. The company also adopted a cautious view of European volumes during the second half, particularly in Germany, its largest market by volume. Weakness has been most visible in certain discretionary retail categories. Klarna’s forecast assumes German consumer spending will remain soft through year-end, following real German retail sales growth of less than 1% during the first half. Full-year revenue is now expected at $4.08 billion-$4.16 billion, compared with the earlier forecast of more than $4.34 billion. Adjusted operating income is projected at $280 million-$300 million. The reduced outlook followed a stronger second quarter. Revenue increased 27% to $1.04 billion, exceeding Wall Street’s $996.4 million estimate, according to Fiscal.ai. Earnings were $0.01 per share, versus expectations for a $0.06 per-share loss. U.S. revenue rose 37% to $376 million, driven mainly by Fair Financing, a long-term loan product that generates interest income from new and existing loans. Klarna separately said CFO Niclas Neglén and marketing chief David Sandström will leave their roles in early 2027 as part of a planned transition. The company has begun searching for a New York-based CFO. Despite the selloff, KLAR sentiment on Stocktwits shifted from neutral to extremely bullish over the past 24 hours amid extremely high message volumes. Some retail investors expect a rebound, while another described the decline as a buying opportunity. The shares are down more than 45% so far this year.