Sprinklr (CXM) Stock Forecast & Price Target

Sprinklr Inc. demonstrated robust growth in its Professional Services segment, achieving a 43% year-over-year increase, while Subscription revenue reached $190.3 million, representing a 5% year-over-year growth and exceeding expectations. Management's updated FY26 revenue guidance, increased to $854 million, projects a midpoint growth of approximately 7%, while a strategic focus on long-term investments in AI and go-to-market capabilities underscores Sprinklr's commitment to enhancing its service offerings. With $480 million in cash and cash equivalents, the company maintains a strong financial position to support future initiatives and navigate upcoming renewal challenges, suggesting a cautious yet optimistic outlook for the company's performance.

Sprinklr Inc. has experienced a significant decline in its Total Remaining Performance Obligations (RPO), decreasing from 4% year-over-year in F2Q26 to a negative 5%, primarily driven by an 18% fall in noncurrent RPO. Additionally, while non-GAAP operating margins of 15.3% surpassed estimates, they represented a decrease of approximately 300 basis points quarter-over-quarter, indicating potential operational challenges. The company faces increased competition and macroeconomic pressures that could adversely affect sales cycles, customer retention, and overall revenue generation, contributing to a negative outlook on its future financial performance.