Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. reported a substantial year-over-year increase of 43% in Professional Services revenue, contributing to a total revenue of $190.3 million from subscription services, which exceeded estimates and accounted for 87% of total revenue. The company has adjusted its FY26 revenue guidance upwards to $854 million, indicating a midpoint growth of approximately 7%, bolstered by strong execution and positive trends in customer retention and renewal rates. Additionally, with $480 million in cash and marketable securities, Sprinklr demonstrates a solid financial position to support ongoing investments in AI and go-to-market capabilities, setting a robust foundation for future growth despite management's caution in providing long-term forecasts.

Sprinklr Inc. has reported a significant decline in total Remaining Performance Obligations (RPO), with year-over-year growth dropping from 4% to -5%, primarily due to an 18% decrease in noncurrent RPO. Although the non-GAAP operating margins improved to 15.3% this quarter, they experienced a sequential decline of approximately 300 basis points, alongside total gross margins decreasing to 67.2%, down 180 basis points quarter-over-quarter. The company faces potential risks from macroeconomic deterioration that could adversely affect sales cycles and customer retention, as well as intense competition from larger technology firms and niche solution providers which may hinder its revenue growth and financial stability.