Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc reported a notable increase in Professional Services revenue, which rose 43% year-over-year to $28.8 million, while Subscription revenue experienced moderate growth of 5% year-over-year to $190.3 million, suggesting a resilient demand for its unified engagement platforms. The company raised its fiscal year 2026 revenue guidance to $854 million, which reflects a projected year-over-year growth rate of approximately 7%, indicating confidence in its strategic direction and execution. Additionally, with $480 million in cash and cash equivalents, alongside strong efficiency metrics demonstrating a Non-GAAP operating income of $33.5 million, Sprinklr maintains a solid financial position to support investments in artificial intelligence and market expansion initiatives.

The financial outlook for Sprinklr Inc appears negative due to several critical factors. First, there has been a notable decline in total Remaining Performance Obligations (RPO), which dropped 5% year-over-year, primarily attributed to an 18% decrease in noncurrent RPO, signaling potential revenue challenges ahead. Additionally, while non-GAAP operating margins were reported at 15.3%, this figure represents a decrease of approximately 300 basis points quarter-over-quarter, compounded by a decrease in gross margins both overall and in subscription services, further complicating the company's profitability amidst macroeconomic pressures and competitive threats.