TD Cowen has reduced its target price for Klaviyo Inc. (NYSE:KVYO) to $35.00 from $40.00, while leaving its Buy rating intact. The change comes after Klaviyo reported fiscal fourth-quarter results that outperformed several expectations, even as the shares trade well below their 52-week peak.
At the time of the update the stock was trading at $21.12, a notable drop from a 52-week high of $49.55 and representing a year-to-date decline of nearly 35%.
TD Cowen's revision follows Klaviyo's Q4 performance, which produced 30% revenue growth - ahead of TD Cowen's own estimate of 24% for the period. The company also posted a one percentage point improvement in its net revenue retention rate, which reached 110% in the quarter.
Over the trailing twelve months Klaviyo recorded 32.8% revenue growth, supported by a gross profit margin of 75.2%, figures TD Cowen referenced in its analysis. Looking ahead, Klaviyo's fiscal 2026 guidance calls for revenue growth in a range of 21.5% to 22.5%, which TD Cowen notes sits 50 basis points above the firm's earlier forecast range.
TD Cowen also pointed to Klaviyo's services and artificial intelligence offerings as contributing factors to the quarter's results, saying those initiatives are "off to a strong start." In characterizing the company, the firm described Klaviyo as an "underappreciated story with difficult to replicate infrastructure roots and compelling AI value proposition for users," language that underpinned its decision to sustain a Buy rating despite trimming the price target.
Additional company-reported results for the fourth quarter of 2025 show that Klaviyo exceeded earnings expectations, posting earnings per share of $0.19 versus the $0.15 that analysts had anticipated. Revenue for the quarter came in at $350.2 million, ahead of the $320.74 million consensus figure.
Those beats translate to a 26.67% positive surprise on EPS and a 9.19% upside relative to revenue forecasts, based on the comparisons cited above.
Separately, Stephens has adjusted its own valuation assumptions for Klaviyo, lowering its price target to $31.00 from $43.00 and attributing the change to a valuation reset. Stephens continues to carry an Overweight rating on Klaviyo and highlighted several favorable developments in the company's operating results.
Taken together, the analyst actions reflect a market in which Klaviyo's recent operating progress - including robust gross margins, strong retention metrics, and early traction in services and AI - is balanced against a share price that remains well below its recent highs and prompted downward adjustments to some price targets.