William Blair analyst Arjun Bhatia has maintained their neutral stance on CXM stock, giving a Hold rating today.
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Arjun Bhatia has given his Hold rating due to a combination of factors impacting Sprinklr’s current and future performance. The company’s first quarter showed better-than-expected subscription revenue growth and improved profitability, with operating margins surpassing previous guidance. However, despite maintaining full-year subscription revenue guidance, the macroeconomic environment remains uncertain, leading to longer sales cycles and increased scrutiny on enterprise spending. This has resulted in pressure on renewals and a slight decrease in net revenue retention and high-value customer numbers.
While there is optimism surrounding the leadership of President and CEO Rory Read, who is implementing a turnaround plan to stimulate growth, the changes are still in the early stages and will take time to yield significant results. The company is experiencing some positive developments, such as an improved pipeline, but these are expected to contribute more meaningfully in the latter half of the fiscal year. Consequently, fiscal 2026 is viewed as a transition period, with the potential for long-term growth, but current uncertainties warrant a cautious Hold rating.
Bhatia covers the Technology sector, focusing on stocks such as InterDigital, ServiceNow, and Five9. According to TipRanks, Bhatia has an average return of 3.8% and a 49.17% success rate on recommended stocks.
In another report released today, D.A. Davidson also maintained a Hold rating on the stock with a $9.00 price target.