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Sprinklr (CXM)
NYSE:CXM
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Sprinklr (CXM) AI Stock Analysis

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CXM

Sprinklr

(NYSE:CXM)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$8.50
▲(12.73% Upside)
Sprinklr's overall stock score reflects strong financial performance and reasonable valuation, offset by mixed technical indicators and balanced earnings call sentiment. The company's strategic focus on AI and customer engagement initiatives is promising, but challenges like churn, technical debt, and leadership transitions need to be addressed for sustained growth.
Positive Factors
Revenue Growth
Sprinklr's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Cash Flow Generation
Robust cash flow growth enhances financial flexibility, allowing for reinvestment in strategic initiatives and reducing reliance on external financing.
Strategic Initiatives
Initiatives like Project Bearhug improve customer engagement and retention, fostering long-term loyalty and enhancing revenue stability.
Negative Factors
Subscription Revenue Challenges
Persistent challenges in subscription renewals could hinder revenue growth and affect customer retention, impacting long-term financial stability.
Customer Cohort Decline
A decline in high-value customers may indicate competitive pressures or dissatisfaction, potentially affecting future revenue and market position.
High Data and Hosting Costs
Rising operational costs could pressure margins, limiting profitability improvements and financial flexibility over the long term.

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, where clients pay for access to its CXM platform and its suite of tools. The company offers various pricing tiers based on the features and services utilized, catering to businesses of all sizes. Key revenue streams include annual subscriptions, professional services for platform implementation and training, and add-on features or modules that customers can purchase. Sprinklr also benefits from strategic partnerships with major technology companies and agencies, which can enhance its service offerings and expand its market reach, thereby contributing to its overall earnings.

Sprinklr Key Performance Indicators (KPIs)

Any
Any
Remaining Performance Obligations
Remaining Performance Obligations
Indicates the total value of contracted revenue yet to be recognized, offering a view of future revenue streams and business stability.
Chart InsightsSprinklr's remaining performance obligations have shown a steady upward trend, reflecting strong demand for its services. However, recent earnings call insights reveal challenges with customer churn and slower revenue growth, which could impact future obligations. The company is addressing these issues with strategic initiatives like 'Project Bear Hug' to enhance customer engagement and a focus on AI investments. Despite macroeconomic pressures, Sprinklr's record free cash flow and stock buyback program indicate confidence in long-term growth potential.
Data provided by:The Fly

Sprinklr Earnings Call Summary

Earnings Call Date:Dec 03, 2025
(Q3-2026)
|
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 exhibits strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet. The company effectively manages its debt and generates substantial cash flow, positioning it well for future growth. Minor concerns include equity reduction and cash flow volatility.
Income Statement
85
Very Positive
Sprinklr has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.84%, indicating a positive trajectory. The company maintains healthy profitability margins, with a gross profit margin of 69.94% and a net profit margin of 14.64% in the TTM. The EBIT and EBITDA margins have improved significantly, reflecting operational efficiency. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet is robust, with a low debt-to-equity ratio of 0.09, indicating low leverage and financial stability. The return on equity (ROE) is strong at 20.97%, showcasing effective use of equity to generate profits. The equity ratio stands at 50.06%, reflecting a solid capital structure. However, the decrease in stockholders' equity over the past year could be a concern if it continues.
Cash Flow
82
Very Positive
Sprinklr's cash flow performance is impressive, with a free cash flow growth rate of 20.26% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.11 suggests efficient cash conversion. The free cash flow to net income ratio of 0.93 highlights the company's ability to generate cash relative to its net income. However, the lower operating cash flow coverage ratio compared to previous periods suggests potential volatility in cash flow.
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
Neutral
Last Price7.54
Price Trends
50DMA
7.54
Negative
100DMA
7.99
Negative
200DMA
8.14
Negative
Market Momentum
MACD
-0.09
Negative
RSI
57.55
Neutral
STOCH
78.36
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 7.54 is above the 20-day moving average (MA) of 7.29, below the 50-day MA of 7.54, and below the 200-day MA of 8.14, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 78.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
75
Outperform
$1.77B16.1123.74%6.08%153.79%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$592.09M-26.69%13.09%32.34%
61
Neutral
$1.31B1,046.670.35%-0.67%-95.68%
57
Neutral
$608.04M-28.65%16.40%22.80%
51
Neutral
$413.75M-25.34%-7.43%61.36%
48
Neutral
$2.37B-171.54%28.97%-4.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXM
Sprinklr
7.54
-1.10
-12.73%
SPT
Sprout Social
10.27
-21.73
-67.91%
GRND
Grindr
13.00
-2.40
-15.58%
FRGE
Forge Global Holdings
44.22
29.30
196.38%
BMBL
Bumble
3.67
-5.15
-58.39%
VMEO
Vimeo
7.85
1.10
16.30%

Sprinklr Corporate Events

Business Operations and StrategyExecutive/Board Changes
Sprinklr Appoints New Chief Product Officer
Positive
Oct 27, 2025

On October 27, 2025, Sprinklr announced the appointment of Karthik Suri as Chief Product and Corporate Strategy Officer. Suri, who brings over 25 years of experience in technology and product leadership, will lead Sprinklr’s product vision and corporate strategy. His expertise in identifying market opportunities and driving strategic growth aligns with Sprinklr’s ongoing transformation efforts to accelerate its product roadmap and define the unified customer experience market. This strategic appointment is expected to enhance Sprinklr’s industry positioning and expand its impact on delivering AI-native customer experience solutions.

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.

Business Operations and StrategyExecutive/Board Changes
Sprinklr Appoints Anthony Coletta as New CFO
Positive
Oct 7, 2025

On October 7, 2025, Sprinklr announced the appointment of Anthony Coletta as Chief Financial Officer, succeeding Rory Read who served as interim CFO. Coletta, with over 20 years of financial leadership experience, most recently at SAP, will oversee Sprinklr’s financial operations, including strategic growth initiatives. His appointment is expected to strengthen Sprinklr’s financial position and drive operational excellence, aligning with the company’s transformation journey.

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

Sprinklr Earnings Call: Balanced Sentiment Amid Transition
Sep 5, 2025

Sprinklr, Inc. Earnings Call Reflects Balanced Sentiment Amid Transition

Sprinklr Reports Strong Q2 Fiscal 2026 Results
Sep 4, 2025

Sprinklr, Inc. is a leading enterprise software company specializing in unified customer experience management (Unified-CXM) for modern enterprises, leveraging advanced AI to deliver exceptional customer interactions across various channels. Headquartered in New York City, Sprinklr serves over 1,900 global brands, including 60% of the Fortune 100.

Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Sprinklr CEO Steps In as Interim CFO
Positive
Sep 3, 2025

On September 3, 2025, Sprinklr announced the departure of its CFO, Manish Sarin, effective September 19, 2025, with Rory Read, the company’s CEO, stepping in as interim CFO. The company also appointed Scott Millard as Chief Revenue Officer, effective September 22, 2025. Sprinklr reported strong financial results for the second quarter of fiscal 2026, with total revenue increasing by 8% year-over-year to $212 million and subscription revenue rising by 6% to $188.5 million. The company continues to focus on its transformation journey, emphasizing customer engagement and R&D innovations.

The most recent analyst rating on (CXM) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Sprinklr stock, see the CXM Stock Forecast page.

Executive/Board Changes
Sprinklr Appoints New Principal Accounting Officer
Neutral
Aug 11, 2025

On August 7, 2025, Marlise Ricci announced her decision to resign as Chief Accounting Officer of Sprinklr, Inc., effective August 15, 2025. Following her resignation, the company’s Board appointed Manish Sarin, the current Chief Financial Officer, as the new principal accounting officer, effective the same date. There are no known personal or transactional conflicts involving Mr. Sarin in his new role.

The most recent analyst rating on (CXM) stock is a Hold with a $11.00 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 03, 2025