Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. demonstrated robust financial performance with a noteworthy 43% year-over-year increase in Professional Services revenue, while Subscription revenue reached $190.3 million, reflecting a growth of 5% year-over-year, collectively constituting 87% of total revenue. The management's upward revision of the fiscal year 2026 revenue guidance to $854 million indicates an anticipated year-over-year growth of approximately 7%, highlighting a positive trend in revenue expectations amid strategic investments in AI and go-to-market capabilities. Additionally, the company maintained a strong cash position with $480 million in cash and cash equivalents, positioning Sprinklr well for sustained growth and operational efficiency as evidenced by a Non-GAAP operating income of $33.5 million and a 15% margin.

Sprinklr Inc. has experienced a significant decline in total Remaining Performance Obligations (RPO), falling from a year-over-year growth of 4% in F2Q26 to a negative 5%, primarily driven by an 18% decline in noncurrent RPO. Additionally, while non-GAAP operating margins improved to 15.3%, they still represented a drop of approximately 300 basis points quarter-over-quarter, accompanied by a decrease in subscription gross margins due to rising costs related to expanded AI capabilities. Furthermore, Sprinklr faces heightened risks from macroeconomic deterioration that may adversely impact sales cycles and customer retention, compounded by competitive pressures from established technology firms and point solution providers in the Customer Experience Management (CXM) and Contact Center as a Service (CCaaS) markets.