Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. demonstrated a substantial year-over-year increase in Professional Services revenue, reaching $28.8 million, up 43%, while Subscription revenue grew modestly by 5% to $190.3 million, contributing to 87% of total revenue. The company raised its fiscal year 2026 revenue guidance to $854 million, reflecting an anticipated year-over-year growth of approximately 7% and an increase in the subscription revenue midpoint to $755 million, indicating a slight rise in expectations. With $480 million in cash and cash equivalents, coupled with strong operating income of $33.5 million at a 15% margin, Sprinklr is well-positioned to invest in growth initiatives like AI and go-to-market capabilities, bolstering its overall financial health and outlook.

Sprinklr Inc. has experienced a concerning decline in total Remaining Performance Obligations (RPO), with year-over-year growth dropping from 4% to -5%, driven primarily by an 18% decline in noncurrent RPO. Even though the company reported non-GAAP operating margins of 15.3%, this marks a decrease of approximately 300 basis points quarter-over-quarter, alongside a slight decline in subscription gross margins due to rising costs associated with enhanced AI capabilities. Additionally, the adverse macroeconomic environment and heightened competitive pressures could further hinder sales cycles and customer retention, posing risks to Sprinklr's revenue generation and overall financial stability.