KVYO Stock Forecast & Price Target

Klaviyo Inc. is projected to achieve a revenue of $346-$350 million for 1Q26, reflecting a year-over-year increase of 23.5%-25.0%, while non-GAAP operating income is anticipated to reach $50-$53 million, marking a growth of 14.5%-15.0%. The company has demonstrated significant customer acquisition success, adding a record 10,000 net new customers in the latest quarter, with marked growth in its mid-market and enterprise segments, as evidenced by a 50% increase in net new customers with annual recurring revenue over $50,000. Moreover, Klaviyo's guidance for FY26 indicates a revenue increase of 22.0%, projecting $1.501-$1.509 billion, which exceeds the market's expectations and indicates strong momentum across various customer segments.

Klaviyo Inc. is experiencing a decline in revenue growth projections, with expectations set at 22% for FY26, a significant drop from the previous quarter's 30%. Additionally, profit margins are under pressure, as evidenced by a 140 basis point year-over-year decrease in non-GAAP gross margins to 72.8%, coupled with increased infrastructure costs and rising competition from major players like Microsoft and ServiceNow. Given these challenges, alongside the potential for rapid subscription revenue deceleration and limited competitive differentiation, the outlook on Klaviyo's stock remains negative.