Citizens JMP maintains Sprinklr stock rating after strong earnings

Published 05/06/2025, 09:54
Citizens JMP maintains Sprinklr stock rating after strong earnings

On Thursday, Citizens JMP analysts reaffirmed their Market Outperform rating for Sprinklr Inc (NYSE: CXM) stock with a price target of $17.00. This decision follows the company’s release of its fiscal first-quarter 2026 results, which exceeded expectations. According to InvestingPro data, six analysts have recently revised their earnings estimates upward, with price targets ranging from $7 to $17. The company maintains a GOOD financial health score, supported by strong fundamentals.

Sprinklr reported a non-GAAP earnings per share of $0.12, surpassing the consensus estimate of $0.05. The company’s non-GAAP operating margin improved to 17.9%, up from 12.8% in the previous quarter. Revenue for the quarter reached $205.5 million, exceeding the consensus forecast of $201.8 million. This represents a 5% year-over-year increase, up from a 4% growth rate in the previous quarter. The company maintains an impressive gross profit margin of 71%, demonstrating strong operational efficiency.

Despite a slight decrease in net dollar expansion to 102%, which was below the estimated 103% and down from 104% last quarter, Sprinklr showed stable growth in other areas. Remaining performance obligations (RPO) grew by 2%, consistent with the previous quarter, while current RPO (cRPO) increased by 5%, up from 4% last quarter.

The positive financial performance led to a 6% increase in Sprinklr’s stock on Thursday. Year-to-date, the stock has risen by 7%, compared to a 1% increase for the Russell 3000 index.

In other recent news, Sprinklr Inc. reported impressive financial results for the second quarter of 2025, with earnings per share (EPS) at $0.12, surpassing the forecasted $0.10. The company also achieved revenue of $205.5 million, exceeding the anticipated $201.88 million. Additionally, Sprinklr’s subscription revenue grew by 4% year-over-year, reaching $184.1 million. DA Davidson analysts responded to these strong results by raising Sprinklr’s stock price target from $8 to $9, while maintaining a Neutral rating. This adjustment reflects confidence in Sprinklr’s potential for growth as it continues its multiyear turnaround plan. Sprinklr has also launched an AI-native customer experience management platform, marking a strategic move to strengthen its market position. The company is projecting subscription revenue for fiscal year 2026 to be between $741 million and $743 million, indicating a 3% growth. Investors are keeping a close eye on Sprinklr’s ongoing transformation efforts and strategic initiatives, which are aimed at achieving long-term growth and stability.

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