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Sprinklr (CXM)
NYSE:CXM

Sprinklr (CXM) AI Stock Analysis

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CXM

Sprinklr

(NYSE:CXM)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
$7.00
▲(9.72% Upside)
Sprinklr's overall stock score reflects strong financial performance and strategic initiatives that support future growth. The company's effective management of leverage and cash flow, combined with strategic investments in AI and leadership changes, position it well for long-term success. However, challenges in subscription renewals and technical indicators showing some resistance temper the outlook.
Positive Factors
Cash Generation
Strong free cash flow growth and a high free cash flow-to-net-income ratio indicate durable cash conversion. This supports self-funded R&D, strategic investments, and potential bolt-on M&A while reducing dependence on external financing, improving long-term financial flexibility.
Balance Sheet Strength
Very low leverage and rising return on equity provide structural resilience. Minimal debt lowers interest burden and default risk, enabling sustained investment in product and go-to-market initiatives while preserving capacity to withstand demand swings over multiple quarters.
Product & Strategic Initiatives
Ongoing AI and R&D investments plus Project Bearhug’s C-suite engagement build product differentiation and deeper enterprise relationships. These structural moves increase switching costs, improve upsell potential, and should enhance renewal economics over the medium term.
Negative Factors
Subscription Renewal Pressure
Prolonged renewal headwinds undermine recurring revenue predictability and ARR expansion. Persistent renewal weakness forces higher sales and customer success spend to retain revenue, constraining margin expansion and making long-term revenue growth more execution-dependent.
Top-Customer Attrition
Decline in the cohort of million-dollar customers signals concentration and retention risks at the top end. Losing large accounts disproportionately reduces recurring revenue and can worsen churn metrics, pressuring scale economics and increasing reliance on new large deals.
Rising Data & Hosting Costs
Structural increases in data and hosting costs, amplified by AI feature expansion, compress gross margins unless offset by price or efficiency gains. Sustained cost inflation can limit operating leverage and require strategic changes to pricing, architecture, or partner arrangements.

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

Sprinklr Business Overview & Revenue Model

Company DescriptionSprinklr, 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 MoneySprinklr generates revenue primarily through a subscription-based model, offering its software as a service (SaaS) to businesses of varying sizes. Customers pay for access to the platform based on their selected features, number of users, and the level of support needed. Key revenue streams include annual contracts for enterprise clients, tiered subscription plans for mid-sized businesses, and additional charges for premium features or services. Significant partnerships with major social media platforms and integrations with other enterprise software solutions enhance Sprinklr's value proposition, driving customer acquisition and retention, which in turn contributes to its earnings.

Sprinklr Key Performance Indicators (KPIs)

Any
Any
Gross Profit by Segment
Gross Profit by Segment
Reveals the profitability of each segment, indicating which parts of the business are most efficient and contribute most to overall financial health.
Chart InsightsSprinklr's subscription gross profit has plateaued since early 2024, reflecting challenges in sustaining growth. The earnings call highlights churn and renewal pressures, impacting revenue stability. Professional services show erratic performance, with recent losses. Despite these hurdles, Sprinklr's AI investments and leadership changes aim to revitalize growth, though technical debt and margin pressures persist. The company's guidance for slower growth underscores the need for strategic adjustments to navigate these challenges effectively.
Data provided by:The Fly

Sprinklr Earnings Call Summary

Earnings Call Date:Dec 03, 2025
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with strong revenue growth and successful customer initiatives, but also ongoing challenges in subscription renewals and service implementations. While the company is making strategic investments and transformations, the impact of these changes is still unfolding.
Q3-2026 Updates
Positive Updates
Revenue Growth
Third quarter total revenue grew 9% year over year to $219.1 million, and subscription revenue grew 5% year over year to $190.3 million.
Non-GAAP Operating Income
Generated $33.5 million in non-GAAP operating income, resulting in a 15% non-GAAP operating margin for the quarter.
Project Bearhug Success
Early results from Project Bearhug show stronger C-suite relationships and better alignment with customer priorities, improving renewal rates into FY '27.
Customer Success Stories
Signed expansion deal with a leading Latin American bank, resulting in significant productivity boosts and CSAT improvements.
Improved Financial Outlook
Raised expectations for both subscription revenue and total revenue estimates for FY 2026, with total revenue expected to be $853 million to $854 million.
Negative Updates
Subscription Revenue Challenges
While subscription revenue was up 5% year over year, there has been downward pressure from renewals for more than two years.
Customer Cohort Decline
At the end of the third quarter, there were 145 customers contributing $1 million or more in subscription revenue, a decrease of four customers from Q2.
High Data and Hosting Costs
Experiencing higher data and hosting costs in response to business opportunities, especially in Sprinklr service and expanded AI capabilities.
Challenges in Implementation
Challenges in some service implementations noted, with inconsistencies in execution being addressed.
Company Guidance
In the recent financial results call for the third quarter of fiscal year 2026, Sprinklr provided detailed guidance for the upcoming fourth quarter and the full fiscal year. The company reported a total revenue of $219.1 million for Q3, reflecting a 9% year-over-year growth, with subscription revenue rising by 5% to $190.3 million. The non-GAAP operating income stood at $33.5 million, resulting in a 15% non-GAAP operating margin for the quarter. Sprinklr is projecting Q4 revenue to be between $216.5 million and $217.5 million, indicating a 7% growth year over year, and expects subscription revenue to be in the range of $191 million to $192 million, a 5% increase. For the entire fiscal year, the company has raised its guidance, anticipating total revenue between $853 million and $854 million, marking a 7% growth, and subscription revenue in the range of $754 million to $755 million, reflecting a 5% increase. The guidance also highlights a focus on improving renewal rates, with strategic initiatives like Project Bearhug aimed at enhancing engagement with top customers. Additionally, Sprinklr is investing in AI and R&D to drive future growth, with a commitment to sustaining innovation and optimizing operational efficiency.

Sprinklr Financial Statement Overview

Summary
Sprinklr demonstrates strong financial health with consistent revenue growth, improving profitability, and robust cash flow generation. The company has effectively managed its leverage, maintaining a low debt-to-equity ratio while enhancing return on equity. Despite minor fluctuations in gross profit margins, the overall trajectory is positive, positioning Sprinklr well for future growth.
Income Statement
85
Very Positive
Sprinklr's income statement shows strong revenue growth and improving profitability. The TTM data indicates a revenue growth rate of 2.24%, with a healthy net profit margin of 14.64%. The company has successfully transitioned from negative EBIT and EBITDA margins in earlier years to positive margins, reflecting improved operational efficiency. However, the gross profit margin has slightly decreased over time, suggesting potential cost pressures.
Balance Sheet
78
Positive
The balance sheet is robust, with a low debt-to-equity ratio of 0.089, indicating low financial leverage. The return on equity has improved significantly to 20.97%, showcasing effective use of equity capital. However, the equity ratio has slightly declined, which could suggest increased asset utilization or changes in asset structure.
Cash Flow
82
Very Positive
Sprinklr's cash flow statement highlights strong free cash flow growth of 11.96% in the TTM period. The operating cash flow to net income ratio of 0.27 indicates solid cash generation relative to net income. The free cash flow to net income ratio is high at 0.93, suggesting efficient conversion of income into cash. The company has shown consistent improvement in cash flow metrics over the years.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue796.39M732.36M618.19M492.39M386.93M
Gross Profit574.32M552.96M454.46M344.84M264.85M
EBITDA42.65M49.41M-39.17M-79.41M-19.89M
Net Income121.61M51.40M-55.74M-111.47M-41.18M
Balance Sheet
Total Assets1.18B1.22B1.02B920.05M585.89M
Cash, Cash Equivalents and Short-Term Investments483.46M662.55M578.63M532.41M280.69M
Total Debt48.70M33.29M16.77M0.0078.85M
Total Liabilities572.14M543.41M475.66M404.20M403.16M
Stockholders Equity612.06M679.70M549.33M515.85M182.73M
Cash Flow
Free Cash Flow71.79M51.14M10.21M-45.33M827.00K
Operating Cash Flow77.59M71.47M26.66M-32.92M7.31M
Investing Cash Flow154.13M-110.57M-193.49M-15.65M-219.46M
Financing Cash Flow-248.16M24.09M34.97M303.13M269.78M

Sprinklr Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.38
Price Trends
50DMA
7.36
Negative
100DMA
7.51
Negative
200DMA
7.93
Negative
Market Momentum
MACD
-0.32
Positive
RSI
26.26
Positive
STOCH
18.05
Positive
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 6.38 is below the 20-day moving average (MA) of 6.97, below the 50-day MA of 7.36, and below the 200-day MA of 7.93, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 26.26 is Positive, neither overbought nor oversold. The STOCH value of 18.05 is Positive, 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
77
Outperform
$1.57B14.8721.35%6.48%168.94%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$535.84M-10.73-26.69%13.09%32.34%
53
Neutral
$2.09B-29.69-171.54%28.97%-4.18%
52
Neutral
$618.85M-9.06-28.65%16.40%22.80%
51
Neutral
$377.68M-1.75-25.34%-7.43%61.36%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXM
Sprinklr
6.29
-2.53
-28.68%
SPT
Sprout Social
8.68
-24.45
-73.80%
GRND
Grindr
11.00
-7.07
-39.13%
FRGE
Forge Global Holdings
44.66
33.65
305.63%
BMBL
Bumble
3.34
-4.69
-58.41%

Sprinklr Corporate Events

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 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.

Business Operations and StrategyExecutive/Board Changes
Sprinklr Strengthens Leadership With New Chief Accounting Officer
Positive
Dec 18, 2025

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.

Executive/Board Changes
Sprinklr’s Chief Revenue Officer Resigns
Neutral
Nov 12, 2025

On November 7, 2025, Scott Millard, the Chief Revenue Officer of Sprinklr, Inc., announced his resignation to pursue another opportunity, with his departure effective November 11, 2025.

The most recent analyst rating on (CXM) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

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: Dec 19, 2025