Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc demonstrated significant year-over-year growth in Professional Services revenue, rising 43% to $28.8 million, while Subscription revenue grew 5% to $190.3 million, contributing to 87% of total revenue. The company also increased its fiscal year 2026 revenue guidance to $854 million from $838 million, reflecting a commitment to growth despite a challenging market environment, with a midpoint growth rate of approximately 7%. With $480 million in cash and cash equivalents, along with improved operational efficiency reflected in a 15% Non-GAAP operating income margin, Sprinklr positions itself well for future investments and sustained growth.

Sprinklr Inc. is experiencing a significant downturn in its financial performance, as evidenced by a 5% year-over-year decline in total Remaining Performance Obligations (RPO) and an 18% decrease in noncurrent RPO. Although the company's non-GAAP operating margins are at 15.3%, showing a slight edge over estimates, they have fallen approximately 300 basis points quarter-over-quarter, indicating ongoing operational challenges. Additionally, the current macroeconomic environment and intense competition from larger tech firms and niche providers pose substantial risks, potentially affecting customer retention, sales cycles, and overall revenue growth.