Sprinklr Inc. (CXM) Drops 1.62% After Earnings, EPS Tops Expectations, Sales Beat Consensus

2025-12-03 · Stocks · QuoteReporter

Post Earning Analysis

Sprinklr Inc. (CXM) Drops 1.62% After Earnings, EPS Tops Expectations, Sales Beat Consensus

Sprinklr, Inc. is a New York-based company founded in 2009 by Ragy Thomas. It specializes in providing enterprise cloud software that helps organizations manage and enhance customer experiences across various modern communication channels like social media, messaging, chat, and text. Sprinklr’s unified platform supports functions including marketing, advertising, customer care, sales, and engagement.

The current price of the asset is $7.51, which represents a decrease of 1.62% today. This price is positioned between the 52-week range of $6.75 to $9.69, showing a moderate recovery from the 52-week low but still considerably below the high. The year-to-date metrics mirror the 52-week figures, indicating no significant price changes occurred outside this range within the year.

The asset has recently faced a decline, as suggested by the price being 6.12% below the week’s high of $8.00, though it has recovered somewhat from the week’s low of $7.09. The moving averages indicate a mixed sentiment: the asset is currently above the 20-day moving average by 3.09% but below the 50-day and 200-day moving averages by 0.31% and 7.62%, respectively, suggesting recent gains amidst a longer-term downward trend.

The RSI at 56.1 points to neither overbought nor oversold conditions, providing a neutral signal. However, the MACD being slightly negative at -0.06 indicates a weak bearish momentum. Overall, the asset shows some short-term recovery but remains under pressure in a broader context.

Sprinklr (NYSE: CXM) reported a third-quarter fiscal year 2026 revenue of $219.1 million, marking a 9% increase from the previous year’s $200.7 million. Subscription revenue rose by 5% to $190.3 million. The company’s GAAP operating income improved to $11.6 million from $7.9 million, while non-GAAP operating income increased significantly to $33.5 million from $23.0 million. GAAP net income per share decreased to $0.01 from $0.04, whereas non-GAAP net income per share rose to $0.12 from $0.10.

Cash flow from operations was $20.0 million, and free cash flow stood at $15.5 million. Despite a 5% decline in Remaining Performance Obligations (RPO), Current Remaining Performance Obligations (cRPO) grew by 3%. The company ended the quarter with $480.3 million in cash and equivalents.

For Q4 FY2026, Sprinklr anticipates subscription revenue between $191 million and $192 million, with total revenue projected between $216.5 million and $217.5 million. Non-GAAP operating income is expected to be between $29 million and $30 million, and non-GAAP EPS between $0.09 and $0.10. Full-year guidance forecasts subscription revenue between $754 million and $755 million, total revenue between $853 million and $854 million, and non-GAAP operating income between $137.5 million and $138.5 million, with an EPS range of $0.43 to $0.44. The company also repurchased $152.3 million worth of shares during the quarter, reflecting confidence in its financial health and future performance.

Earnings Trend Table

The earnings per share (EPS) data over the observed quarters shows a general trend of the company consistently surpassing analyst estimates, with a few notable exceptions. From the period beginning in December 2023 to December 2025, the company has mostly reported higher EPS than estimated, indicating robust financial performance and potentially effective management strategies.

Starting in December 2023, there is a significant positive surprise of 60.68%, with the reported EPS of $0.11 against an estimate of $0.07. This trend of outperforming estimates continues consistently, with surprises ranging from 22.45% to 49.68% until a dip occurs in September 2024. During this quarter, the company underperforms for the first time, with a reported EPS of $0.06 against an estimate of $0.07, marking a -13.93% surprise. This could indicate operational or market challenges during that period.

However, the company quickly rebounds in the following quarters, returning to positive surprise margins, culminating in a 33.33% positive surprise in December 2025. This pattern suggests that the September 2024 dip was an anomaly rather than a trend, as the company demonstrates a strong ability to exceed expectations in subsequent periods. Overall, the data reflects a positive outlook on the company’s earnings performance, with consistent overachievement relative to analyst expectations.

The most recent rating changes for Outer provide a mixed outlook from various financial firms, reflecting diverse perspectives on the company’s market position and future potential.

1. Cantor Fitzgerald – June 3, 2025: Cantor Fitzgerald resumed coverage on Outer with a “Neutral” rating, setting a target price of $8. This suggests that the firm sees the company as fairly valued at its current price, indicating neither significant upside nor downside risk.

2. William Blair – February 7, 2025: William Blair downgraded Outer from “Outperform” to “Market Perform.” This change implies that the firm no longer perceives the previous growth potential in Outer’s stock, suggesting that it might perform in line with the general market rather than outperforming.

3. JP Morgan – December 11, 2024: JP Morgan downgraded its rating on Outer from “Overweight” to “Neutral” with a target price of $11. This adjustment indicates a shift in expectation, where JP Morgan possibly sees limited catalysts for growth or increased risks that could hamper performance.

4. Scotiabank – November 19, 2024: Scotiabank initiated coverage on Outer, assigning a “Sector Perform” rating with a target price of $7.70. This initiation at a neutral stance suggests Scotiabank’s view of Outer aligns with the average sector performance, without any particular advantage or disadvantage noted at the time of evaluation.

These adjustments in ratings by prominent financial firms highlight a cautious or neutral stance towards Outer, with expectations aligning closely with market or sector performance rather than significant growth or decline.

The current price of the stock is $7.51. Based on the latest ratings, the average target price from analysts varies, with Cantor Fitzgerald setting a target at $8.00, JP Morgan at $11.00 after a downgrade from ‘Overweight’ to ‘Neutral,’ and Scotiabank initiating coverage with a target of $7.70. This suggests a mixed outlook from analysts, with some seeing potential for modest growth and others advising caution.

The recent downgrades by William Blair and JP Morgan indicate a shift in market sentiment, possibly due to underlying challenges in the company’s performance or broader market conditions. William Blair’s change from ‘Outperform’ to ‘Market Perform’ and JP Morgan’s adjustment both reflect a more conservative stance on the stock’s future performance.

Overall, the average target price suggests a potential upside from the current price, albeit with varied confidence among analysts. This mixed analyst outlook could imply that investors should keep an eye on upcoming earnings reports and market conditions that could influence the stock’s performance.

Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.