Sprinklr
NYSE: CXM
$5.68 ▲ +0.18  (+3.36%)
At close: Jul 24, 2026 · 3:59 PM UTC
Financial Ratios
Market Cap1.38 Bn
P/E60.37
P/S1.62
Div. Yield0.00
Revenue Growth (1y) (Qtr)8.91
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About

Sprinklr provides a Unified CXM platform that helps organizations manage customer interactions across channels and teams. Its AI native platform enables customer facing teams from service to marketing to collaborate across internal silos, communicate across digital and traditional channels and use AI to deliver better customer experiences at scale. The company’s mission is to empower enterprises to deliver next generation unified journeys that reimagine the customer…

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Sector: Technology Industry: Software - Application CIK: 0001569345

Investment Thesis

▲ Bull case
  • Sprinklr's fourth-quarter renewal rate was the highest in fiscal year 2026, with expectations for continued improvement in Q1 and Q2 of fiscal year 2027, signaling a stabilization in customer retention after earlier elevated churn, which management attributes to the Bear Hug initiative focusing on top-tier customers representing 90% of revenue, and this progress positions the company to transition from operational fix-up to growth acceleration as customer sentiment improves and multiyear commitments increase.
  • The company's generative AI-native Service SKUs achieved 50% year-over-year ARR growth in fiscal year 2026, driven by AI agents, contact center intelligence, and agent copilot, with customers funding these initiatives from existing software budgets rather than cutting core spend, indicating strong organic demand for AI capabilities embedded in Sprinklr's platform, and management plans to incentivize sales teams to accelerate adoption further in the next 9–12 months to support the acceleration phase of transformation.
  • Sprinklr's partnership strategy with global system integrators yields a 75% higher win rate, as evidenced by a flagship deal with a leading global payments company standardizing corporate communications, brand, social care, and MarTech on its platform, which provides a single source of proof for global marketing data and converts social signals into actionable intelligence, and the company aims to grow this ecosystem without diluting margins by leveraging partners for implementation while focusing on its core software AI platform.
  • The company ended fiscal year 2026 with $502.5 million in cash and marketable securities, no debt, and generated $142 million in free cash flow for the year, up 140% year-over-year, and authorized a $200 million share buyback program to be completed by March 15, 2027, signaling management's confidence in the strategy and belief that the current share price represents a compelling opportunity, while maintaining sufficient capital to execute its growth agenda post-repurchases.
▼ Bear case
  • Sprinklr's fiscal year 2027 guidance calls for only 1% total revenue growth at the midpoint, with subscription revenue growth of 3%, reflecting a significant deceleration from the 8% total revenue and 5% subscription revenue growth achieved in fiscal year 2026, and this outlook assumes professional services revenue will decline to $91 million from $100.9 million in the prior year, suggesting that the Bear Hug initiatives may not be translating into sustainable subscription-driven expansion as expected.
  • Despite highlighting improvements in renewal rates, the company reported 141 customers contributing $1 million or more in subscription revenue at the end of fiscal year 2026 Q4, which is four fewer than in Q3, and management explicitly stated they do not intend to disclose this metric quarterly going forward, raising concerns about the durability of top-tier customer retention and the potential for ongoing churn pressure in the installed base that is not being adequately addressed.
  • While Sprinklr emphasizes AI-native innovation, the company is experiencing higher data and hosting costs due to expanded AI capabilities, particularly in Sprinklr Service, and is investing in hiring AI and R&D talent with forward-deployed engineers, yet these costs are pressuring margins, as reflected in the flat non-GAAP operating margin guidance of 17% for fiscal year 2027 despite ongoing cost discipline, suggesting that profitability gains from operational efficiency may be offset by the investments required to compete in the AI landscape.
  • The company's reliance on a partnership ecosystem for services delivery, while intended to avoid margin dilution, introduces execution risk, as evidenced by the need to "feed both sides" of the model, and management acknowledged that services revenue is expected to decelerate to levels seen one year ago, indicating that the large Global 50 implementation that drove prior-year services growth is winding down without a clear replacement catalyst, potentially leaving a gap in revenue contribution and customer adoption momentum.
  • Sprinklr operates in a highly competitive customer experience management market where DIY AI initiatives and in-house coding are becoming more prevalent, as noted in discussions about generative AI SKUs, and the company faces competition not only from external vendors but also from customers building their own solutions on internal platforms, which could undermine the value proposition of its unified platform if enterprises perceive they can achieve similar outcomes with greater control and lower long-term costs.

Geographical Breakdown of Revenue (2026)

Product and Service Breakdown of Revenue (2026)

Peer Comparison

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1 SAP Sap Se 208.91 Bn20.224.867.05 Bn
2 YMM Full Truck Alliance Co. Ltd. 188.77 Bn322.09-0.00 Bn
3 SHOP Shopify Inc. 145.98 Bn109.5911.80-
4 UBER Uber Technologies, Inc 141.48 Bn16.322.6410.51 Bn
5 CRM Salesforce, Inc. 128.51 Bn16.953.0039.28 Bn
6 NOW ServiceNow, Inc. 98.38 Bn54.177.057.52 Bn
7 ADP Automatic Data Processing Inc 97.56 Bn22.454.523.98 Bn
8 SNOW Snowflake Inc. 91.55 Bn-76.6318.19-