Sprinklr (NYSE:CXM) posted second-quarter revenue of $212 million, up 8% year-over-year and ahead of guidance. Subscriptions and professional services led growth. The company raised its fiscal 2026 revenue and EPS outlook, reported stronger cash flow, and announced leadership changes as it works to deepen engagement with large customers.
Rosenblatt analyst Catharine Trebnick maintained Sprinklr with a Buy and a $12 price forecast.
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Trebnick said Sprinklr delivered a strong second-quarter with revenue of $212 million, up 8% Y/Y and above both guidance and consensus, supported by 6% growth in subscriptions and 22% growth in professional services. She noted that the operating margin held steady at 18%, cash flow exceeded expectations, and management raised fiscal 2026 revenue and EPS guidance as the number of customers generating over $1 million in annual revenue grew.
She highlighted leadership changes, including Scott Millard joining as CRO and CFO Manish Sarin’s upcoming departure, with CEO Rory Read stepping in as interim CFO. Despite these strong results and guidance raises, Trebnick said shares fell about 8% post-earnings, reflecting investor unease over executive transitions and ongoing customer churn. Still, she reiterated a Buy rating with a $12 price forecast, pointing to improvement among large customers and progress with Project Bear Hug, which aims to deepen engagement with top accounts.
Trebnick lifted her fiscal 2026 revenue forecast to $838 million (from $826 million) and adjusted EPS estimate to $0.43 (from $0.40), above Street consensus. For the second quarter, she pointed out Sprinklr’s operating income of $38.2 million (18% margin) beat her estimate of $33.9 million, and adjusted EPS of $0.13 topped consensus at $0.10.
Trebnick added that while near-term margins face pressure from AI and R&D investments, stronger-than-expected revenue supports the raised full-year EPS outlook.
Price Action: CXM shares are down 0.84% at $7.67 at the last check on Thursday.
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