Sprinklr (CXM) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: N/A
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.98
• Revenue Growth: 6.48%
• EPS Growth: 168.94%
• Country: US
• Employees: 3,589
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.13
• Shares Outstanding: 145,436,450
• 10 Day Avg. Volume: 4,610,699
• 30 Day Avg. Volume: 3,357,105
• PEG Ratio: -0.86
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 10.14
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 21.65
• 1Y Price Target: $8.25
• Price Target Upside: 37.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $870.08M

• Rating: 67 Neutral
• Price Target: $6.00 ▲(0.00% Upside)
• Action: Downgraded Date: 03/11/26
• Date: Action: Downgraded 03/11/26

The score is driven primarily by improving fundamentals—stronger free cash flow, positive profitability, and a modestly levered balance sheet. Offsetting that, technicals are weak with the stock below key moving averages, and valuation is demanding with a very high P/E. Guidance and buyback support the outlook, but renewals and cost/implementation pressures remain notable risks.

Positive Factors

Free Cash Flow Strength

Sprinklr’s material expansion in operating and free cash flow, and the swing from prior negative cash flow to durable positive FCF, improves financial flexibility. Durable FCF supports R&D, larger deals, buybacks, and cushions execution risks while enabling reinvestment.

Improving Profitability & Margins

Sustained positive non-GAAP operating income and a mid-teens operating margin reflect structural improvements in cost discipline and scalability of the SaaS model. Higher margins enable reinvestment in product and AI while reducing dependency on external financing over the medium term.

Conservative Balance Sheet / Liquidity

Low leverage and a substantial equity base provide financial resilience. Modest debt levels plus cash reserves support strategic initiatives (R&D, customer success, buybacks) and absorb temporary revenue volatility without forcing dilutive financing.

Negative Factors

Renewal Pressure / Customer Cohort Shrinkage

Prolonged renewal headwinds and a shrinking $1M+ customer cohort signal structural retention and account-health issues. Loss of large accounts reduces recurring revenue predictability and upsell runway, forcing more sales/service investments to maintain growth.

Rising Data and Hosting Costs

Higher data and hosting expenses driven by expanded AI and service workloads can structurally compress gross margins. If costs scale faster than revenue or price realization, margin gains may be eroded, limiting the durability of recent profitability improvements.

Implementation and Service Execution Inconsistency

Inconsistent professional services and implementation execution undermine adoption, delay value realization, and strain renewal/expansion dynamics. Persistent delivery variability increases customer churn risk and raises long-term cost-to-serve for large enterprise deployments.

Sprinklr Business Overview & Revenue Model

Company Description

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company offers Unified Customer Experience Management platform, a purpose-built to analyze unstructured customer experience data, built to scale across future and modern channels, and integrates all stages of the customer journey. Its products include Modern Research that enables its customers to listen, learn from, and act on insights gleaned from modern channels; Modern Care that enables brands to listen to, route, resolve and analyze customer service issues across modern and traditional channels; Modern Marketing and Advertising enables global brands to plan, create, publish, optimize, and analyze their organic/owned marketing content and paid advertising campaigns across modern channels; and Social Engagement and Sales allows customers listen to, triage, engage, and analyze conversations across modern channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.

How the Company Makes Money

Sprinklr primarily makes money by selling subscriptions to its cloud software platform (software-as-a-service). Customers typically pay recurring fees for access to Sprinklr’s CXM capabilities, with pricing generally influenced by factors such as the products/modules purchased, the scale of deployment (for example, number of users/seats or usage/volume), and contract term/enterprise scope. In addition to subscription revenue, Sprinklr generates services revenue from professional services associated with customer onboarding, implementation, configuration, and training to support deployments and adoption. The company may also earn revenue via partner-led implementations and alliances with systems integrators and technology partners that help sell, deploy, or extend the platform; however, specific partnership economics (e.g., revenue share terms) are not publicly available at a granular level, so those details are null.

Sprinklr Financial Statement Overview

Summary

Strong turnaround signals: revenue has scaled, TTM profitability is positive, and free cash flow has expanded meaningfully. Balance sheet leverage remains modest. Key risks are recent margin softening and variability in reported earnings versus underlying operating performance.

Income Statement

Revenue has scaled meaningfully over the last several years, with a sharp acceleration shown in TTM (Trailing-Twelve-Months) revenue growth. Profitability has also improved versus earlier loss-making years, with positive EBIT and net income in TTM. That said, margins have softened from prior annual peaks (gross margin down and net margin slightly lower), and net income in the most recent annual period appears unusually high versus the underlying operating margin—suggesting earnings volatility and/or non-operating impacts.

Balance Sheet

The balance sheet looks conservatively levered: debt remains low relative to equity across periods, which provides financial flexibility. Equity is substantial versus total assets, and returns on equity have rebounded strongly from negative levels in earlier years to solid positive levels recently. The key watch-out is that leverage has ticked up from very low levels (though still modest), and profitability consistency remains important to sustain the improved return profile.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow have expanded materially, with strong free-cash-flow growth in TTM (Trailing-Twelve-Months) and high conversion of profits into free cash flow. Importantly, the business has swung from negative cash flow in earlier years to durable positive cash flow more recently. The main drawback is that operating cash flow remains relatively small compared with revenue (despite improving), indicating there is still room for better cash efficiency at scale.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	857.20M	796.39M	732.36M	618.19M	492.39M
Gross Profit	577.78M	574.62M	552.96M	454.46M	344.84M
EBITDA	40.24M	32.89M	44.41M	-44.60M	-82.84M
Net Income	22.91M	121.61M	51.40M	-55.74M	-111.47M
Balance Sheet
Total Assets	1.21B	1.18B	1.22B	1.02B	920.05M
Cash, Cash Equivalents and Short-Term Investments	502.51M	483.46M	662.55M	578.63M	532.41M
Total Debt	46.73M	48.70M	33.29M	16.77M	0.00
Total Liabilities	612.42M	572.14M	543.41M	475.66M	404.20M
Stockholders Equity	592.64M	612.06M	679.70M	549.33M	515.85M
Cash Flow
Free Cash Flow	157.81M	71.79M	51.14M	10.21M	-45.33M
Operating Cash Flow	159.19M	77.59M	71.47M	26.66M	-32.92M
Investing Cash Flow	-12.47M	154.13M	-110.57M	-193.49M	-15.65M
Financing Cash Flow	-131.85M	-248.16M	24.09M	34.97M	303.13M

Sprinklr Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CXM, the sentiment is Negative. The current price of 6 is above the 20-day moving average (MA) of 5.79, below the 50-day MA of 6.14, and below the 200-day MA of 7.57, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 57.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CXM.

Sprinklr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	67 Neutral	$1.45B	69.87	3.93%	―	6.48%	168.94%
GRND	67 Neutral	$2.32B	27.11	60.60%	―	28.97%	-4.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$343.53M	-15.25	-22.88%	―	13.09%	32.34%
BMBL	57 Neutral	$463.44M	-0.53	-106.91%	―	-7.43%	61.36%

Sprinklr Corporate Events

Sprinklr Posts Q4 Results With Improving Profitability, Modest Growth

On March 11, 2026, Sprinklr reported fourth-quarter and full-year fiscal 2026 results, highlighting moderate top-line growth and improving profitability, supported by $220.6 million in Q4 revenue, up 9% year-on-year, and non-GAAP operating margin expanding to 17%. For the full year ended January 31, 2026, revenue rose 8% to $857.2 million, non-GAAP operating income climbed to $146.2 million, free cash flow strengthened, and the company ended the period with $502.5 million in cash and securities, while management pointed to macro caution but underscored transformation progress, a base of 141 $1 million customers, and guidance for continued albeit modest growth in fiscal 2027.

On March 8, 2026, Sprinklr’s board authorized a $200 million stock repurchase program, under which the company expects to execute an approximately $125 million accelerated share repurchase in the near term and complete the wider program by March 15, 2027, subject to market conditions. The buyback, which can be conducted through open-market and structured transactions and may be adjusted or suspended at any time, signals confidence in Sprinklr’s balance sheet strength, cash generation, and long-term shareholder value strategy, though management emphasized that actual repurchase levels will depend on share price, trading conditions, and alternative capital needs.

The most recent analyst rating on (CXM) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Sprinklr Announces Planned Departure of Chief Marketing Officer

On January 20, 2026, Sprinklr, Inc. announced that its Chief Marketing Officer, Arun Pattabhiraman, will leave the company effective March 16, 2026, under a planned transition period and separation arrangement. During the transition, Pattabhiraman will remain in his role with full salary and benefits, and upon his departure he is set to receive severance in line with Sprinklr’s executive severance plan while continuing to observe post-employment obligations such as confidentiality and restrictive covenants, signaling an orderly leadership change designed to minimize operational disruption.

The most recent analyst rating on (CXM) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Sprinklr Strengthens Leadership With New Chief Accounting Officer

On December 12, 2025, Sprinklr’s board appointed Michele M. Meyers as Chief Accounting Officer and principal accounting officer, effective January 5, 2026, while Anthony Coletta continues as Chief Financial Officer and principal financial officer. Meyers, a seasoned accounting and finance leader with more than two decades of experience at publicly traded technology companies including Coursera, Black Knight, Altisource Portfolio Solutions, and Deloitte, will oversee Sprinklr’s accounting operations, financial reporting, and compliance, reporting directly to the CFO. Her compensation package includes a $380,000 annual base salary, a target bonus equal to 40% of base salary, a $220,000 signing bonus subject to repayment conditions, and a $2 million restricted stock unit award vesting over four years, along with eligibility for executive severance protections, standard employee benefits, confidentiality obligations, and an indemnification agreement under Delaware law. Sprinklr highlighted her track record in SEC reporting, SOX compliance, process automation, and leading finance teams through complex transactions such as IPOs, spin-offs, and major bond offerings, underscoring the company’s focus on strengthening its accounting and compliance capabilities as it continues its broader transformation efforts; the appointment was publicly announced in a press release issued on December 18, 2025.

The most recent analyst rating on (CXM) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.