Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. reported a significant increase in Professional Services revenue, which rose 43% year-over-year, contributing positively to its overall financial performance, with subscription revenue reaching $190.3 million, reflecting a healthy 5% growth. The company has raised its FY26 revenue guidance to $854 million, suggesting improved expectations for growth, particularly noted in the increase of the subscription revenue midpoint to $755 million. Additionally, Sprinklr's strong cash position of $480 million, along with recent operational efficiencies yielding a Non-GAAP operating income of $33.5 million, underscores its robust financial health and commitment to investing strategically in AI and market capabilities.

Sprinklr Inc. has experienced a concerning decline in total remaining performance obligations (RPO), showing a 5% year-over-year reduction driven by an 18% decline in noncurrent RPO, suggesting weakening demand for its enterprise solutions. Furthermore, while non-GAAP operating margins improved compared to estimates, they fell approximately 300 basis points quarter-over-quarter, indicating potential inefficiencies and rising costs attributed to expanding AI capabilities. The combination of macroeconomic pressures impacting sales cycles and increased competition from both larger technology firms and niche providers further raises concerns about Sprinklr's ability to maintain customer retention and drive revenue growth in the near term.