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Sprinklr, Inc. (CXM)
NYSE:CXM
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Sprinklr (CXM) AI Stock Analysis

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CXM

Sprinklr

(NYSE:CXM)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
$5.50
▼(-8.33% Downside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by improving fundamentals (profitability and strong free cash flow) and a solid balance sheet, partially offset by conservative FY’27 growth guidance and margin/churn headwinds discussed on the earnings call. Technicals remain weak-to-neutral with the stock still below longer-term moving averages, and the high P/E with no dividend yield limits valuation support.
Positive Factors
Strong cash generation and conservative balance sheet
Durable free-cash-flow generation and a large cash position with no debt give Sprinklr financial flexibility to fund AI R&D, absorb near-term growth uncertainty, execute the $200M buyback, and support customer/sales investments without levering the balance sheet.
Negative Factors
Decelerating top-line growth guidance
Management's low-growth FY'27 outlook suggests constrained near-term ARR expansion and weaker revenue momentum, reducing the pace at which operating leverage can compound and making multi-year growth targets harder to regain without reaccelerating net-new bookings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and conservative balance sheet
Durable free-cash-flow generation and a large cash position with no debt give Sprinklr financial flexibility to fund AI R&D, absorb near-term growth uncertainty, execute the $200M buyback, and support customer/sales investments without levering the balance sheet.
Read all positive factors

Sprinklr (CXM) vs. SPDR S&P 500 ETF (SPY)

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 cha...
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 ...

Sprinklr Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Shows how much revenue each business segment generates, highlighting areas of strength and potential growth within the company’s diverse operations.
Chart InsightsSprinklr's Professional Services revenue has rebounded strongly in recent quarters, reaching new highs, while Subscription revenue growth has slowed. The earnings call highlights a 5% year-over-year increase in subscription revenue, but ongoing challenges with renewals persist. Strategic initiatives like Project Bearhug are improving customer engagement, potentially stabilizing future subscription growth. Despite high data and hosting costs, the company's focus on AI and R&D investments aims to drive long-term growth. Investors should watch for the impact of these initiatives on renewal rates and overall revenue stability.
Data provided by:The Fly

Sprinklr Earnings Call Summary

Earnings Call Date:Mar 11, 2026
(Q4-2026)
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% Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: solid progress on profitability, free cash flow (+140% YoY) and balance sheet strength, meaningful AI SKU ARR growth (+50% YoY), improved renewal trends and strategic enterprise wins. Offsetting these positives are elevated churn experienced in FY '26 (though improving), margin pressure from rising data/hosting costs tied to AI, a low-margin services mix, and conservative FY '27 top-line guidance (approx. 1% total revenue growth at midpoint). Management frames the company as mid-transformation with improving operational indicators but near-term growth headwinds and investment-driven margin moderation.
Positive Updates
Q4 Revenue and Subscription Growth
Total revenue for Q4 was $220.6M, up 9% year-over-year; subscription revenue was $193.4M, up 6% year-over-year.
Negative Updates
Elevated Churn in FY '26
Management acknowledged elevated churn during FY '26, particularly in the first half of the year; Q4 churn had improved but elevated churn remains a recent issue to overcome.
Read all updates
Q4-2026 Updates
Negative
Q4 Revenue and Subscription Growth
Total revenue for Q4 was $220.6M, up 9% year-over-year; subscription revenue was $193.4M, up 6% year-over-year.
Read all positive updates
Company Guidance
Sprinklr guided Q1 FY'27 total revenue of $215.5–$216.5M (~5% YoY at midpoint) with subscription revenue $193–$194M (~5% YoY), professional services ~$22.5M (up ~5% YoY) and services gross margin slightly negative to breakeven; Q1 non‑GAAP operating income $28.5–$29.5M (≈13% non‑GAAP operating margin at midpoint) and non‑GAAP net income per diluted share of about $0.09 (assuming ~245M diluted shares), with a Q1 tax provision ~ $8.5M, ~$3.5M of other income, and ~$40M of free cash flow expected. For full‑year FY'27 management forecast subscription revenue $778–$780M (~3% YoY), total revenue $869–$871M (~1% YoY) with professional services ~$91M (~10% of revenue), non‑GAAP operating income $144–$146M (≈17% margin), non‑GAAP EPS $0.47–$0.48 (assuming ~244M diluted shares), ~$15M total other income for the year, a total tax provision of ~ $42M (~26% effective tax rate on non‑GAAP PBT), and targeted full‑year free cash flow of ~$150M; guidance reflects continued investment in AI/R&D, higher cloud/data costs, and incremental hiring.

Sprinklr Financial Statement Overview

Summary
Strong turnaround signals: positive EBIT/net income in TTM, meaningful revenue scaling, and notably improved operating and free cash flow. Balance sheet strength (large cash position, modest leverage/no debt noted) supports resilience. Key risks are recent margin softening, services margin drag, and some earnings variability versus underlying operating performance.
Income Statement
74
Positive
Balance Sheet
79
Positive
Cash Flow
83
Very Positive
BreakdownJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue857.20M796.39M732.36M618.19M492.39M
Gross Profit577.78M574.62M552.96M454.46M344.84M
EBITDA78.16M32.89M44.41M-44.60M-82.84M
Net Income22.91M121.61M51.40M-55.74M-111.47M
Balance Sheet
Total Assets1.21B1.18B1.22B1.02B920.05M
Cash, Cash Equivalents and Short-Term Investments502.51M483.46M662.55M578.63M532.41M
Total Debt46.73M48.70M33.29M16.77M0.00
Total Liabilities612.42M572.14M543.41M475.66M404.20M
Stockholders Equity592.64M612.06M679.70M549.33M515.85M
Cash Flow
Free Cash Flow157.81M71.79M51.14M10.21M-45.33M
Operating Cash Flow159.19M77.59M71.47M26.66M-32.92M
Investing Cash Flow-12.47M154.13M-110.57M-193.49M-15.65M
Financing Cash Flow-131.85M-248.16M24.09M34.97M303.13M

Sprinklr Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.00
Price Trends
50DMA
5.77
Negative
100DMA
6.55
Negative
200DMA
7.34
Negative
Market Momentum
MACD
-0.12
Positive
RSI
45.44
Neutral
STOCH
25.89
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, above the 50-day MA of 5.77, and below the 200-day MA of 7.34, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 25.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CXM.

Sprinklr Risk Analysis

Sprinklr disclosed 44 risk factors in its most recent earnings report. Sprinklr reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sprinklr Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$2.40B27.1160.60%28.97%-4.18%
64
Neutral
$1.35B69.873.93%6.48%168.94%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
$335.33M-15.25-22.88%13.09%32.34%
57
Neutral
$530.95M-0.53-106.91%-7.43%61.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXM
Sprinklr
5.62
-1.26
-18.31%
SPT
Sprout Social
5.64
-13.24
-70.13%
GRND
Grindr
12.94
-6.36
-32.95%
BMBL
Bumble
4.31
<0.01
0.23%

Sprinklr Corporate Events

Business Operations and StrategyStock BuybackFinancial Disclosures
Sprinklr Posts Q4 Results With Improving Profitability, Modest Growth
Positive
Mar 11, 2026
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 ...
Executive/Board Changes
Sprinklr Announces Planned Departure of Chief Marketing Officer
Neutral
Jan 20, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 01, 2026