Sprinklr (NYSE:CXM) Announces Earnings Results, Beats Expectations By $0.01 EPS

Sprinklr (NYSE:CXM) announced its earnings results on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.01, FiscalAI reports. Sprinklr had a return on equity of 7.21% and a net margin of 2.65%.The firm had revenue of $213.74 million during the quarter, compared to analysts’ expectations of $214.45 million. During the same period in the prior year, the firm earned $0.13 EPS. The business’s revenue was up .8% on a year-over-year basis. Sprinklr updated its FY 2027 guidance to 0.470-0.470 EPS and its Q3 2027 guidance to 0.110-0.110 EPS.

Here are the key takeaways from Sprinklr’s conference call:

• Q2 revenue growth remained modest: Total revenue increased 1% year over year to $213.7 million, while subscription revenue grew 3% to $194.8 million. Four enterprise deals exceeding $1 million in ARR and a 30% increase in completed sales transactions pointed to improving activity.
• Professional services weighed on results. Services revenue declined due to softness in managed services, while services gross margin fell to negative 22% because of partner cost overruns and regional execution issues; management expects another year-over-year decline in services revenue in Q3.
• Customer retention and contracted demand improved. Net dollar expansion was 102% overall and 112% among customers with more than $1 million in ARR, while total RPO rose 11% year over year to $1.03 billion, supported by larger renewals and contract terms of up to five years.
• AI adoption is gaining traction. Sprinklr reported more than 200 AI engagements, AI-native SKU ARR growth of 40%, and growing use of agentic AI and contact-center intelligence as enterprises consolidate point solutions onto its unified platform.
• Subscription guidance was raised, but total revenue was not. Full-year subscription revenue guidance increased to $782.5 million–$784.5 million, or 4% growth at the midpoint, while total revenue guidance remained at $866.5 million–$868.5 million because of a more conservative services outlook; the company also expects approximately $135 million in free cash flow and has $75 million remaining under its share-repurchase authorization.

Sprinklr Stock Performance

CXM stock opened at $6.24 on Friday. The stock’s 50 day moving average price is $6.37 and its 200 day moving average price is $5.80. The firm has a market cap of $1.46 billion, a P/E ratio of 62.41 and a beta of 0.65. Sprinklr has a 1 year low of $4.72 and a 1 year high of $8.27.

Insider Activity at Sprinklr

In other news, General Counsel Jacob Scott sold 71,585 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $6.97, for a total value of $498,947.45. Following the completion of the transaction, the general counsel directly owned 576,827 shares of the company’s stock, valued at $4,020,484.19. The trade was a 11.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Karthik Suri sold 41,852 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $5.14, for a total value of $215,119.28. Following the completion of the sale, the insider owned 1,111,472 shares in the company, valued at $5,712,966.08. This represents a 3.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 395,880 shares of company stock valued at $2,210,116 in the last ninety days. 25.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sea Cliff Partners Management LP boosted its stake in shares of Sprinklr by 1,174.6% during the 2nd quarter. Sea Cliff Partners Management LP now owns 2,166,792 shares of the company’s stock worth $18,331,000 after purchasing an additional 1,996,792 shares during the last quarter. Norges Bank acquired a new position in shares of Sprinklr in the fourth quarter valued at approximately $11,524,000. Goldman Sachs Group Inc. raised its position in shares of Sprinklr by 138.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,646,893 shares of the company’s stock valued at $12,813,000 after buying an additional 957,149 shares during the last quarter. Federated Hermes Inc. lifted its stake in shares of Sprinklr by 53.7% during the fourth quarter. Federated Hermes Inc. now owns 2,361,911 shares of the company’s stock valued at $18,376,000 after buying an additional 824,782 shares during the period. Finally, HRT Financial LP lifted its stake in shares of Sprinklr by 1,838.8% during the fourth quarter. HRT Financial LP now owns 833,801 shares of the company’s stock valued at $6,486,000 after buying an additional 790,796 shares during the period. 40.19% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CXM. UBS Group set a $7.50 price objective on Sprinklr in a report on Thursday. Morgan Stanley upped their price objective on Sprinklr from $7.00 to $8.00 and gave the stock an “equal weight” rating in a report on Thursday. Cantor Fitzgerald reissued a “neutral” rating on shares of Sprinklr in a report on Thursday. DA Davidson boosted their target price on shares of Sprinklr from $6.00 to $6.50 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $8.50 price target on shares of Sprinklr in a research report on Thursday. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $8.21.

Key Sprinklr News

Here are the key news stories impacting Sprinklr this week:

• Positive Sentiment: Sprinklr reported adjusted earnings of $0.11 per share, exceeding the $0.10 consensus estimate. Annual EPS guidance of $0.47 is also above analysts’ prior $0.44 expectation.
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and set an $8.50 price target, indicating substantial potential appreciation from recent trading levels.
• Positive Sentiment: Morgan Stanley raised its price target to $8.00 from $7.00, while DA Davidson increased its target to $6.50 from $6.00. Both firms maintain neutral-style ratings—“equal weight” and “neutral,” respectively—suggesting valuation support but limited conviction.
• Neutral Sentiment: Sprinklr’s second-quarter revenue reached $213.74 million, up just 0.8% year over year and slightly below the $214.45 million consensus estimate. Earnings declined from $0.13 per share in the year-ago quarter.
• Neutral Sentiment: Management forecast third-quarter revenue of $215 million to $216 million and EPS of $0.11, both modestly below consensus expectations of $216.3 million and $0.12, respectively.
• Negative Sentiment: Investors remain concerned about decelerating subscription growth, weaker backlog expansion, gross-margin pressure and rising AI-related costs, with limited evidence so far that new AI features are generating meaningful incremental revenue. Sprinklr: Failing To Build Any Traction Around AI
• Negative Sentiment: The combination of nearly flat revenue growth and below-consensus third-quarter guidance is offsetting the quarterly EPS beat, leaving the market focused on Sprinklr’s difficulty rebuilding sustainable growth.

About Sprinklr

Sprinklr, Inc (NYSE: CXM) is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale.

Sprinklr’s platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities.