Sprinklr, Inc. (CXM) AI Stock Analysis
CXM AI stock analysis summary
AI ResearchSprinklr, Inc. (CXM) is an enterprise cloud software company providing Unified Customer Experience Management solutions. Across the trailing twelve months, revenue reached $872.9M with a net profit margin of 2.6%. The company holds $411.6M in net cash and generated $157.8M in free cash flow in FY2026, though quarterly revenue growth slowed to 0.8% in the latest quarter.
- Market cap
- $1.35B
- Revenue (TTM)
- $872.9M
- P/E
- 64.8x fwd 20.7x
- 1Y return
- -23.0% S&P 500 16.8%
- Avg. target
- $8.44 44.7% vs last close
Bull case
- Sprinklr generated $157.8M of free cash flow in FY2026, supported by low capital expenditures of $1.4M.
- The balance sheet maintains $411.6M in net cash with a low debt-to-equity ratio of 0.08.
- The mean analyst price target of $8.44 sits 44.7% above the last closing price of $5.83.
Bear case
- Revenue growth decelerated to 0.8% year-over-year in the latest quarter ended July 31, 2026.
- Gross margin contracted to 67.4% in FY2026 from 75.5% in FY2024 and 72.2% in FY2025.
- Quarterly earnings fell 39.5% year-over-year in the quarter ended July 31, 2026.
What Sprinklr does
Sprinklr, Inc. provides enterprise cloud software solutions focused on Unified Customer Experience Management. The platform analyzes and scales unstructured customer data across contemporary and emerging channels to connect customer journeys. Key products include Modern Research for gathering channel insights and Modern Care for listening, routing, resolving, and analyzing customer service issues across modern and traditional channels. It also delivers Modern Marketing and Advertising to plan, create, publish, optimize, and analyze digital campaigns, alongside Social Engagement and Sales tools. Founded in 2009 and based in New York, the company also provides professional services, managed solutions, training, and consultancy.
Growth and profitability
Sprinklr expanded revenue from $492.4M in FY2022 to $857.2M in FY2026, reflecting a 5-year revenue CAGR of 17.2%. Annual revenue growth moderated from 27.3% in FY2022 to 7.6% in FY2026. Gross margin stood at 67.4% in FY2026, down from 72.2% in FY2025. Operating margin improved from -20.2% in FY2022 to 6.9% in FY2026. Net income was $22.9M in FY2026, compared to $121.6M in FY2025 and a loss of -$111.5M in FY2022. In the quarter ended July 31, 2026, quarterly revenue growth slowed to 0.8% year-over-year, while quarterly earnings declined 39.5%. Trailing twelve month revenue reached $872.9M with an operating margin of 4.5%.
Balance sheet and cash flow
As of July 31, 2026, Sprinklr held $452.9M in cash and short-term investments against total debt of $41.4M, resulting in net cash of $411.6M. The current ratio was 1.56 and the debt-to-equity ratio was 0.08 on shareholders' equity of $519.5M. In FY2026, operating cash flow reached $159.2M and capital expenditures were $1.4M, producing $157.8M in free cash flow. Capital return in FY2026 included $152.3M spent on share buybacks, contributing to a -6.8% change in share count over 5 years.
Valuation and performance
Sprinklr closed at $5.83 on October 16, 2026, with a market capitalization of $1.35B and an enterprise value of $849.1M. The stock trades at a trailing P/E of 64.8x, above the 28.1x median of its US-listed Technology peers. Its forward P/E of 20.7x also trades above the peer group median of 18.8x. However, its price-to-sales of 1.6x and EV/EBITDA of 13.0x are below the peer medians of 2.8x and 16.6x, respectively. Over the trailing 12 months, CXM returned -23.0%, compared to a 16.8% return for the S&P 500 benchmark (SPY).
What analysts expect
Wall Street coverage includes 2 Strong Buy, 1 Buy, 5 Hold, and 1 Sell ratings. The mean price target is $8.44, representing a 44.7% premium over the last close of $5.83. For the fiscal year ending January 31, 2027, consensus estimates project revenue of $867.4M and EPS of $0.48. For the following fiscal year, 9 analysts project revenue of $897.5M and EPS of $0.53, representing 11.9% EPS growth. Sprinklr beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is December 2, 2026.
Key risks and what to watch
- The stock has lagged broader markets, posting a 1-year return of -23.0% against 16.8% for the S&P 500 (SPY).
- Short interest represents 10.1% of the float as of October 16, 2026.
- Consensus EPS estimate of $0.48 for the year ending January 31, 2027 reflects a projected decline of 2.5%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CXM AI stock analysis
This page is an AI-written research summary of Sprinklr, Inc. (CXM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CXM income statement, CXM balance sheet, CXM key metrics, CXM analyst forecast, CXM chart. See the CXM stock overview for the latest quote and news.
CXM AI stock analysis FAQ
What was Sprinklr's revenue in FY2026?
Sprinklr reported $857.2M in revenue for FY2026, reflecting 7.6% growth over FY2025.
How much cash and debt does Sprinklr have?
As of July 31, 2026, Sprinklr held $452.9M in cash and short-term investments and $41.4M in total debt, yielding net cash of $411.6M.
Does Sprinklr pay a dividend?
Sprinklr does not pay a dividend. In FY2026, the company deployed $152.3M toward share buybacks instead.
What is the consensus analyst price target for CXM?
The mean analyst price target is $8.44, which is 44.7% above its close of $5.83 on October 16, 2026.