Sprinklr's FY26 Will Be A Transition Year With Operational Gains Amid Turnaround, Analyst Says

On Thursday, Wall Street analysts rerated Sprinklr Inc CXM after the company reported its fourth-quarter report Wednesday.

The company reported quarterly revenue of $202.54 million, up 4% year-over-year, topping the analyst consensus estimate of $200.58 million.

Adjusted EPS of $0.10 topped the analyst consensus estimate of $0.07.

Rosenblatt analyst Catharine Trebnick reiterated Sprinklr with a Buy and raised the price target from $10.50 to $12.

Scotiabank analyst Allan Verkhovski maintained Sprinklr with a Sector Perform and raised the price target from $8.50 to $9.

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Rosenblatt: According to the analyst, Sprinklr’s strong fourth-quarter performance, achieved under the new CEO’s leadership, shows a rapid and effective shift towards operational efficiency and customer value.

Trebnick noted this initial success is rooted in the CEO’s efforts to address legacy implementation and delivery challenges while strategically prioritizing expansion sales to the company’s top 400-500 customers.

Fourth-quarter revenue grew 4% versus the consensus estimate of 3% and exceeded expectations by $2 million, primarily driven by subscription services (up 3% versus the consensus of +2%).

Operating margins of 13% and adjusted EPS of $0.10 surpassed guidance and Trebnick/Street estimates of 9% and $0.07, respectively.

Sprinklr is transforming to stabilize and grow, prioritizing improved execution and consistency. This quarter’s financial results and strategic updates, including enhanced margins and targeted customer engagement initiatives, indicate a clear commitment to this strategy.

Trebnick projected first-quarter revenue of $202.0 million and EPS of $0.10.

Scotiabank: Sprinklr guided fiscal 2026 subscription revenue growth aligning with consensus at 3%. Meanwhile, its fiscal 2026 16% adjusted operating margin forecast sharply exceeded consensus at 12%, which did not factor in the 15% layoffs. This drove shares up for the day.

The analyst noted fiscal 2026 is a transition year for Sprinklr, with CEO Rory Read driving operational improvements. The company has implemented a new, redefined GTM model focusing on its top 400 customers.

Additionally, Sprinklr is still in the early stages of revamping its pricing and packaging, with management expecting better performance at the end of the year. The fiscal 2026 subscription revenue growth outlook of 3% suggests no deceleration despite cRPO growth decelerating further to 4%. Even with an 8-figure multiyear renewal from one of the largest tech companies, RPO growth decelerated to 2%.

Sprinklr is trading at 14 times calendar 2026E EV/FCF, a modest discount compared to its <8% calendar 2025 revenue growth peers at 16 times. Verkhovski noted this discount to be warranted as Sprinklr will likely operate below the Rule of 20 while peers are at the Rule of 32.

Verkhovski projected first-quarter revenue of $202.0 million and EPS of $0.10.

Price Action: CXM stock is down 0.80% at $9.345 at last check Thursday.

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