Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. reported calculated billings of $298.6 million, a 10% year-over-year increase, surpassing both consensus and internal estimates, indicating robust demand for its services. The company’s professional services revenue also experienced significant growth at 19% year-over-year, alongside total revenue of $202.5 million, reflecting a 4% year-over-year increase and outperforming expectations. Looking ahead, Sprinklr guided for revenue of approximately $821.5 million to $823.5 million for the fiscal year, coupled with a positive outlook for subscription and operating income growth, further establishing a solid foundation for future performance.

Sprinklr Inc. is facing a downward adjustment in gross margins, projected to decline by 400 basis points to 70% due to rising data and hosting expenses, exacerbated by a challenging macroeconomic environment that could negatively affect sales cycles, close rates, and customer retention. Competitive pressures from both larger technology firms and specialized point solution providers could hinder Sprinklr's market position, further complicating its revenue growth outlook, which is anticipated at only 4% based on billings of $863 million for FY26. Additionally, the company's non-GAAP gross margin of 71.3% fell short of expectations, signaling potential difficulties in maintaining profitability amidst increased operational costs.