Sprinklr stock soars on robust Q4 results and upbeat guidance

Published 12/03/2025, 15:38
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Investing.com -- Shares of Sprinklr (NYSE:CXM) surged 18% following the company’s announcement of strong fourth-quarter earnings and forward-looking guidance that exceeded analyst expectations. The unified customer experience management platform reported a quarterly EPS of $0.10, surpassing the consensus estimate of $0.07. Revenue for the quarter reached $202.5 million, also beating the expected $200.52 million.

The company’s guidance for the first quarter of 2026 is optimistic, projecting an EPS of $0.10 against the consensus of $0.08 and revenue forecasts ranging between $201.5 million and $202.5 million, slightly ahead of the $200.4 million consensus. Additionally, Sprinklr’s full-year 2026 revenue guidance stands at $821.5 million to $823.5 million, compared to the consensus estimate of $819.7 million.

Sprinklr’s fourth-quarter revenue marked a 4% increase YoY, with subscription revenue up 3% YoY. The company also highlighted an 18% YoY increase in $1 million customers and recognized a substantial non-cash income tax benefit. Despite a decline in GAAP operating income compared to the previous year, Sprinklr’s financial outlook remains positive, with subscription revenue expected to rise for fiscal year 2026.

Rosenblatt analyst Catharine Trebnick commented on Sprinklr’s performance, stating, "Sprinklr delivered a strong Q4 2025, exceeding Street expectations with 4.3% year-over-year revenue growth, significantly outpacing the estimated 3%. FY26 guidance slightly surpassed Street expectations at $821.5M to $823.5M. Notably, the company’s operating margin reached 16%, well above the anticipated 12%, a direct result of their recent 15% workforce reduction and effective cost management." Trebnick’s quote emphasizes the company’s robust demand and successful cost-control measures, "The better-than-expected revenue and margin figures suggest solid demand for the company’s customer experience management platform and the success of its cost-optimization efforts."

Sprinklr’s President and CEO, Rory Read, expressed confidence in the Q4 results, attributing the success to large customer deals and emphasizing the company’s strategic transition towards sustainable growth. With the company’s actions to optimize expenses and strengthen product innovation, Sprinklr is positioning itself for a promising fiscal year 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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