BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
On Wednesday, DA Davidson analysts raised the price target for Sprinklr Inc (NYSE: CXM) stock to $9 from $8 while maintaining a Neutral rating. This adjustment follows Sprinklr’s strong fiscal first-quarter 2026 results, which surpassed expectations on both the top and bottom lines. The company, currently valued at $2.3 billion, has maintained profitability over the last twelve months with impressive 72% gross margins and nearly 9% revenue growth.
The analysts highlighted that Sprinklr’s net revenue retention (NRR) and current remaining performance obligations (cRPO) trends are stabilizing. These improvements are attributed to the company’s ongoing resource reallocation efforts. Despite these positive developments, the analysts noted that Sprinklr is still in the early stages of a multiyear turnaround plan. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt, supporting its transformation efforts.
Sprinklr’s recent financial performance has shown promise, but the company acknowledges that the full execution of its strategic plan will take time. The DA Davidson analysts remain cautious, maintaining their Neutral rating on the stock despite the price target increase.
The raised price target reflects the analysts’ confidence in Sprinklr’s potential for growth as it continues to implement its turnaround strategy. The company’s focus on stabilizing key financial metrics is seen as a positive step in achieving its long-term goals.
In other recent news, Sprinklr Inc. reported better-than-expected earnings for the second quarter of 2025, with earnings per share (EPS) of $0.12, surpassing the forecast of $0.10. The company’s revenue reached $205.5 million, exceeding the anticipated $201.88 million, highlighting strong operational execution. Sprinklr’s subscription revenue grew by 4% year-over-year, contributing to a total revenue increase of 5% compared to the previous year. The company also achieved a record free cash flow of $80.7 million during the quarter. Additionally, Sprinklr launched an AI-native customer experience management platform, aiming to solidify its position in the market. The company implemented workforce reduction and restructuring efforts to optimize its operations. Looking ahead, Sprinklr has set its FY 2026 subscription revenue guidance between $741 million and $743 million, with total revenue expected to range from $825 million to $827 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.