Sprinklr (CXM) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.03
• Revenue Growth: 6.48%
• EPS Growth: 168.94%
• Country: US
• Employees: 3,589
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.12
• Shares Outstanding: 145,436,450
• 10 Day Avg. Volume: 2,441,973
• 30 Day Avg. Volume: 2,487,635
• PEG Ratio: 0.13
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 32.30
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 2.36
• Enterprise Value/Ebitda: 19.21
• 1Y Price Target: $9.20
• Price Target Upside: 53.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $881.55M

• Rating: 73 Outperform
• Price Target: $6.00 ▲(0.00% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is supported primarily by strong financial performance (profitability improvement, robust cash flow, and low leverage). It is meaningfully weighed down by weak technicals (price below key moving averages and negative MACD, despite oversold readings). Valuation is reasonable on P/E, while the earnings call adds a mixed outlook: raised guidance and solid margins tempered by renewal pressure and higher cost/implementation risks.

Positive Factors

Cash generation

Strong free cash flow growth and a high FCF-to-net-income ratio indicate durable internal funding. This supports continued R&D and AI investments, funds renewal initiatives, and reduces reliance on external financing over the next several quarters.

Balance sheet strength

Very low financial leverage and materially improved ROE give the company flexibility to absorb cyclical costs, invest in growth initiatives, and pursue strategic opportunities without stressing liquidity or solvency over the medium term.

Recurring SaaS model & strategic initiatives

A subscription-based enterprise model combined with raised guidance, Project Bearhug to boost C-suite engagement, and targeted AI/R&D investment supports predictable revenue, differentiation, and the ability to improve renewal trends and product stickiness long-term.

Negative Factors

Renewal pressure

Multi-year renewal weakness is a structural risk for a subscription business: it reduces lifetime value, limits predictable recurring revenue, and forces heavier investment in retention or new sales to replace lost enterprise dollars over the next several quarters.

Rising data & hosting costs

Growing cloud and AI-related hosting expenses can compress gross margins and impair scalable unit economics. If costs persist, management must raise prices or improve efficiency, each of which can slow adoption or margin recovery over the medium term.

Implementation execution inconsistency

Execution gaps in implementation undermine customer satisfaction and renewal outcomes for enterprise clients. Persistent delivery issues increase service cost, elevate churn risk, and can negate product advantages unless corrected through process and talent improvements.

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 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 Financial Statement Overview

Summary

Strong overall fundamentals: improving profitability (positive EBIT/EBITDA trend and 14.64% net margin), robust free cash flow growth (11.96%) and good cash conversion (FCF/net income 0.93), plus low leverage (debt-to-equity 0.089). Offsets include slightly weakening gross margin and signs of cost pressure.

Income Statement

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

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

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.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	839.15M	796.39M	732.36M	618.19M	492.39M	386.93M
Gross Profit	576.68M	574.32M	552.96M	454.46M	344.84M	264.85M
EBITDA	70.71M	42.65M	49.41M	-39.17M	-79.41M	-19.89M
Net Income	112.63M	121.61M	51.40M	-55.74M	-111.47M	-41.18M
Balance Sheet
Total Assets	1.05B	1.18B	1.22B	1.02B	920.05M	585.89M
Cash, Cash Equivalents and Short-Term Investments	480.35M	483.46M	662.55M	578.63M	532.41M	280.69M
Total Debt	88.55M	48.70M	33.29M	16.77M	0.00	78.85M
Total Liabilities	495.80M	572.14M	543.41M	475.66M	404.20M	403.16M
Stockholders Equity	558.09M	612.06M	679.70M	549.33M	515.85M	182.73M
Cash Flow
Free Cash Flow	139.23M	71.79M	51.14M	10.21M	-45.33M	827.00K
Operating Cash Flow	143.89M	77.59M	71.47M	26.66M	-32.92M	7.31M
Investing Cash Flow	83.34M	154.13M	-110.57M	-193.49M	-15.65M	-219.46M
Financing Cash Flow	-132.20M	-248.16M	24.09M	34.97M	303.13M	269.78M

Sprinklr Technical Analysis

• Technical Analysis Sentiment: Neutral
• 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 Neutral. The current price of 6 is above the 20-day moving average (MA) of 5.74, below the 50-day MA of 6.69, and below the 200-day MA of 7.76, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 78.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CXM.

Sprinklr Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	73 Outperform	$1.44B	13.76	21.35%	―	6.48%	168.94%
GRND	67 Neutral	$2.10B	25.97	―	―	28.97%	-4.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$381.90M	-8.72	-23.42%	―	13.09%	32.34%
FRGE	52 Neutral	$623.01M	-9.13	-28.65%	―	16.40%	22.80%
BMBL	51 Neutral	$342.73M	-1.60	-25.34%	―	-7.43%	61.36%

Sprinklr Corporate Events

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.