Earnings live updates: Klarna stock plunges on trimmed guidance, Home Depot gains
Klarna shares plunged after the payments company trimmed its guidance, while Home Depot gained in the latest earnings-market reaction. The split tape puts the immediate risk on Klarna’s already loss-making profile and favors Home Depot’s more profitable operating base.
Klarna stock declined sharply after the company reduced its guidance. Home Depot shares moved higher.
Klarna generated $3.5B of revenue in fiscal 2025, up 24.8% year over year, but reported a -7.8% net margin and dilutive EPS of $-0.79. Home Depot reported $164.7B of revenue in fiscal 2026, up 3.2%, alongside a 33.3% gross margin, an 8.6% net margin and dilutive EPS of $14.23.
The key follow-through is whether Klarna can restore confidence in its outlook despite its losses, while Home Depot's gain will be tested against the durability of its slower-growth but profitable operating profile.
The trimmed guidance compounds downside risk for KLAR’s loss-making profile, while HD’s earnings reaction is supported by a profitable operating base.
The immediate setup is weakest for KLAR because a guidance reduction lands against a -7.8% net margin and $-0.79 dilutive EPS, leaving less fundamental support for the shares after the plunge. HD offers the stronger comparative profile, with an 8.6% net margin and $14.23 dilutive EPS.
A quantified guidance update showing the trim is limited or already reflected in the price would weaken the downside case for KLAR.
CoverageSource: Yahoo Finance · Published here TUE, AUG 18 · 5:02 PM ET · 3 reports · 1 publisher in this record · latest listed: Yahoo Finance UK · TUE, AUG 18 · 5:02 PM ETHow this is decided →
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KLAR’s $3.5B of revenue and 24.8% year-over-year growth provide a concrete operating-growth hook that could support a rebound if the guidance reduction proves temporary.
The bear case is stronger: KLAR paired the guidance trim with a -7.8% net margin and $-0.79 dilutive EPS, leaving the revised outlook exposed to further estimate pressure.
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