Sprinklr could become good improving business story in 2026, Oppenheimer says

Oppenheimer analyst Brian Schwartz notes that Perform-rated Sprinklr’s (CXM) Q1 P&L and billings results mostly outpaced consensus estimates. In the firm’s view, management is executing well on the cost-efficiency strategy for Sprinklr’s business transformation. This is visible in Q1 with a record 18% operating margin driven by total opex declining year/year by double digits and with record cash generation, Oppenheimer adds. In addition, Sprinklr estimates are slightly rising. These are positives, the firm says. Negatively, 102% NRR has yet to find bottom, and the outlook implies that growth will remain tepid for Sprinklr in 2025. A slow-growth outlook is expected given the business transformation. In the firm’s view, there is not enough growth to entice new investors to the name currently. However, Sprinklr could become a good improving business story in 2026.