Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. reported a strong performance in its Professional Services revenue, which increased by 43% year-over-year to $28.8 million, while Subscription revenue also exceeded expectations, reaching $190.3 million and accounting for 87% of total revenue. The company demonstrated confidence in its financial outlook by raising its FY26 revenue guidance to $854 million, indicating a growth rate of approximately 7% at the midpoint, supported by encouraging results and strategic initiatives that have positively impacted customer retention and renewal rates. Furthermore, Sprinklr maintains a solid financial position with $480 million in cash and marketable securities, allowing for continued investment in AI and go-to-market capabilities, reinforcing a favorable long-term growth trajectory.

Sprinklr Inc. has experienced a decline in total RPO growth from 4% in F2Q26 to a negative 5% year-over-year, driven by an 18% decrease in noncurrent RPO, indicating challenges in future revenue visibility. Additionally, the company reported a decrease in total gross margins to 67.2%, down 180 basis points quarter-over-quarter and 440 basis points year-over-year, attributed to increased service revenue and lower subscription margins. The current macroeconomic environment and rising competitive pressures pose significant risks to Sprinklr's sales cycles, customer retention, and overall ability to maintain profitable growth.