tiprankstipranks
Trending News
More News >
Sprinklr (CXM)
NYSE:CXM
Advertisement

Sprinklr (CXM) AI Stock Analysis

Compare
424 Followers

Top Page

CXM

Sprinklr

(NYSE:CXM)

Select Model
Select Model
Select Model
Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$8.50
▲(14.56% Upside)
Sprinklr's strong financial performance and reasonable valuation are significant strengths, supporting a solid overall score. However, technical analysis indicates bearish trends, and the earnings call highlights ongoing challenges such as churn and technical debt. Strategic initiatives and leadership changes are promising but require time to impact growth positively.
Positive Factors
Revenue Growth
Sprinklr's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
AI and Product Innovation
Strong uptake of AI products suggests Sprinklr's innovation aligns with market trends, enhancing competitive positioning and customer retention.
Leadership Strength
New leadership with strategic experience can drive product vision and corporate strategy, potentially accelerating growth and innovation.
Negative Factors
Churn and Renewal Pressure
High churn rates can undermine revenue stability and growth, requiring strategic adjustments to improve customer retention.
Technical Debt Challenges
Technical debt can hinder operational efficiency and innovation, potentially affecting long-term competitiveness and customer experience.
Gross Margin Pressure
Rising costs impacting gross margins could pressure profitability, necessitating cost management strategies to maintain financial health.

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:Main Street Data

Sprinklr Earnings Call Summary

Earnings Call Date:Sep 03, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Dec 03, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition with a mix of positive developments and ongoing challenges. While there is progress in revenue growth, AI product uptake, and leadership changes, the company continues to face churn and renewal pressures, technical debt issues, and slower growth guidance. The sentiment is balanced with both promising advancements and significant areas needing improvement.
Q2-2026 Updates
Positive Updates
Revenue Growth
Second quarter total revenue grew 8% year over year to $212 million, and subscription revenue grew 6% year over year to $188.5 million.
Non-GAAP Operating Income
Generated a record $38.2 million in non-GAAP operating income, resulting in an 18% non-GAAP operating margin for the quarter.
Project BearHug Success
Project BearHug is positively impacting customer relations, with detailed engagements with nearly half of the top 700 customers, who represent more than 80% of total revenue.
New Leadership Hires
Hired Bit Rambusch as Head of Global Services and Support and Scott Millar as Chief Revenue Officer, bringing experienced leadership to drive growth.
AI and Product Innovation
Investments in AI functionality in marketing, insights, and CCaaS products are showing strong uptake, and new AI-based product enhancements are driving customer satisfaction.
Increase in Large Customers
As of July 31, Sprinklr has 149 customers generating at least $1 million in annual subscription revenue, an increase of three from the previous quarter.
Negative Updates
Churn and Renewal Pressure
Continued scrutiny of enterprise spending and inconsistent operational execution are pressuring renewal cycles and customer churn remains a significant focus.
Technical Debt Challenges
Lingering technical debt from past years continues to impact operational execution and customer satisfaction.
Guidance for Slower Growth
Guidance for Q3 total revenue of $209-210 million represents only 4% growth year over year, with subscription revenue growth of 3% year over year.
Gross Margin Pressure
Higher data and hosting costs due to AI product consumption are expected to reduce gross margins by 2-3 points in the second half of the year.
CFO Departure
CFO Manish Sarin will be leaving Sprinklr, adding to leadership transition challenges.
Company Guidance
During Sprinklr's second quarter fiscal year 2026 earnings call, the company issued guidance for the upcoming fiscal periods. For the third quarter, Sprinklr expects total revenue to be in the range of $209 million to $210 million, with subscription revenue anticipated between $186 million and $187 million, reflecting a year-over-year growth of 3% at the midpoint. Professional services revenue is projected to be around $23 million, growing 15% year over year. The company forecasts non-GAAP operating income for the third quarter to range from $28.5 million to $29.5 million, translating to a 14% non-GAAP operating margin at the midpoint. For the full fiscal year 2026, Sprinklr raised its guidance for subscription revenue to between $746 million and $748 million, indicating a 4% year-over-year increase at the midpoint, and total revenue to be within $837 million to $839 million, up 5% year over year. The full year's non-GAAP operating income is expected to be between $131 million and $133 million, implying a 16% non-GAAP operating margin at the midpoint.

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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue820.77M796.39M732.36M618.19M492.39M386.93M
Gross Profit574.06M574.32M552.96M454.46M344.84M264.85M
EBITDA61.51M42.65M49.41M-39.17M-82.84M-19.89M
Net Income120.18M121.61M51.40M-55.74M-111.47M-41.18M
Balance Sheet
Total Assets1.09B1.18B1.22B1.02B920.05M585.89M
Cash, Cash Equivalents and Short-Term Investments473.99M483.46M662.55M578.63M532.41M280.69M
Total Debt48.21M48.70M33.29M16.77M0.0078.85M
Total Liabilities542.68M572.14M543.41M475.66M404.20M403.16M
Stockholders Equity543.44M612.06M679.70M549.33M515.85M182.73M
Cash Flow
Free Cash Flow124.36M71.79M51.14M10.21M-45.33M827.00K
Operating Cash Flow133.12M77.59M71.47M26.66M-32.92M7.31M
Investing Cash Flow-7.16M154.13M-110.57M-193.49M-15.65M-219.46M
Financing Cash Flow-120.04M-248.16M24.09M34.97M303.13M269.78M

Sprinklr Technical Analysis

Technical Analysis Sentiment
Negative
Last Price7.42
Price Trends
50DMA
7.76
Negative
100DMA
8.20
Negative
200DMA
8.28
Negative
Market Momentum
MACD
-0.07
Positive
RSI
36.96
Neutral
STOCH
22.18
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 7.42 is below the 20-day moving average (MA) of 7.65, below the 50-day MA of 7.76, and below the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 36.96 is Neutral, neither overbought nor oversold. The STOCH value of 22.18 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
73
Outperform
$1.84B16.4423.74%6.08%153.79%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$581.17M-26.69%13.09%32.34%
61
Neutral
$1.31B1,044.000.35%-0.67%-95.68%
53
Neutral
$2.61B-76.08%28.35%24.57%
53
Neutral
$355.27M-28.14%14.78%21.87%
50
Neutral
$441.00M-25.34%-7.43%61.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CXM
Sprinklr
7.42
-0.87
-10.49%
SPT
Sprout Social
10.00
-18.60
-65.03%
GRND
Grindr
15.09
>-0.01
-0.07%
FRGE
Forge Global Holdings
43.99
28.09
176.67%
BMBL
Bumble
4.26
-4.59
-51.86%
VMEO
Vimeo
7.83
0.69
9.66%

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: Oct 30, 2025