Street Calls of the Week
Investing.com - Stifel has reduced its price target on Sprinklr Inc (NYSE:CXM) to $8.00 from $10.00 while maintaining a Hold rating on the customer experience management software company. The company, currently trading at $7.88 with a market capitalization of $2.03 billion, maintains a strong financial health score according to InvestingPro analysis.
The price target adjustment follows Sprinklr’s latest quarterly results, which showed quarter-over-quarter growth in subscription customers worth over $1 million, approximately 2.5% quarterly acceleration in Current Remaining Performance Obligations (CRPO), and strong margin and free cash flow performance. InvestingPro data reveals the company holds more cash than debt on its balance sheet and maintains a healthy 71% gross profit margin.
Stifel noted that management continues to characterize fiscal year 2026 as a "transition year" for Sprinklr as the company implements "Project Bearhug" to improve customer retention, realigns its go-to-market strategy, and delivers innovation across its platform. Despite the transition period, the company has maintained profitability with a diluted EPS of $0.40 over the last twelve months. Get deeper insights into Sprinklr’s financial health with InvestingPro’s comprehensive research report.
The firm views Sprinklr’s third-quarter subscription guidance as reflecting this transition period and uncertainty around when the company will improve its retention metrics, which Stifel believes is the primary factor affecting the stock price.
In addition to the quarterly performance, Sprinklr announced leadership changes with Scott Millard joining as Chief Revenue Officer effective September 22, 2025, and the departure of Chief Financial Officer Manish Sarin scheduled for September 19, 2025.
In other recent news, Sprinklr Inc. reported robust financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.13, which was significantly higher than the forecasted $0.1002. Additionally, Sprinklr’s revenue reached $212 million, outperforming the anticipated $205.4 million. Despite these strong financial results, the stock experienced a decline in pre-market trading, possibly due to market concerns over broader trends or specific company challenges. These developments highlight the company’s current financial standing and investor reactions.
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