Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. demonstrated a robust growth trajectory with calculated billings of $298.6 million, marking a 10% year-over-year increase, which surpassed the consensus estimate. The company reported professional services revenue of $20.5 million, up 19% year-over-year, further indicating strong demand for its offerings. Additionally, Sprinklr's guidance for fiscal year 2026 includes anticipated revenue of $821.5 million to $823.5 million, reflecting a 3% year-over-year growth at the midpoint, alongside an expected operating income of $129 million to $131 million, which significantly exceeded consensus estimates.

Sprinklr Inc. is facing a negative outlook due to a projected decline in gross margins, which are anticipated to decrease by 400 basis points, resulting in a revised gross margin of 70% compared to the previous 73.3%. The company is also grappling with macroeconomic challenges that threaten to adversely affect sales cycles, close rates, and customer retention levels, in addition to intensifying competition from larger tech firms and niche solution providers in the customer experience management and customer communications sectors. Furthermore, concerning financial metrics, the guidance for subscription gross margins is predicted to drop and the low year-over-year growth of 4% in cRPO subscription bookings suggests increasing difficulty in maintaining revenue momentum.