| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 47 | 67.1x | 17.3x | Around median | |
Growth | 44 | 6.3% | 7.1% | Around median | |
Quality | 71 | 0.4% | 4.5% | Top tier | |
Safety | 76 | — | 2.6x | Top tier | |
Capital Return | 68 | 0.00% | 0.06% | Top tier | |
Momentum | 62 | -29.4% | -1.6% | Around median | |
Sentiment | 72 | 6 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sprinklr provides a unified AI-powered customer experience management CXM platform that brings together social listening, publishing, engagement, customer service, contact centers, and insights in a single environment for large enterprises. The revenue model is based primarily on software subscriptions, while professional and managed services play a supporting role in implementing the platform and expanding its use; the platform processes more than 180 billion customer conversations annually.
In the second quarter of fiscal year 2027, revenue reached $213.7 million, up 1% year over year, including $194.8 million from subscriptions, up 3%, and $18.9 million from professional services; subscriptions therefore accounted for approximately 91% of revenue. Gross profit according to EDGAR was approximately $139.2 million, equivalent to a margin of approximately 65%, while net income was $7.1 million and GAAP earnings per share were $0.03.
On a non-GAAP basis, Sprinklr generated operating income of $31.3 million, an operating margin of 15%, and diluted earnings per share of $0.11, exceeding the $0.10 estimate but declining from $0.13 in the comparable period. Subscription gross margin was 74%, compared with a negative 22% margin for services, resulting in a non-GAAP gross margin of 66%. On a trailing-twelve-month basis within fiscal year 2027, the company recorded revenue of $872.9 million, gross profit of $572.5 million, and net income of $23.2 million.
The analyst consensus on CXM stock is Neutral, with an average price target of $7.25 and a target range of $6.25 to $8; the average is approximately 12% below the 52-week range high of $8.275, while remaining approximately 54% above the range low of $4.715. The wide distance within the 52-week range reflects the market's balance between improving contracts and AI on one hand, and 1% total revenue growth and negative services margins on the other. The available data does not provide a valid comparable earnings multiple, making analyst targets and the development of profitability and cash flow more useful for evaluating the case.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Subscriptions contributed $194.8 million of the $213.7 million in total revenue, representing approximately 91% of the mix, and subscription revenue increased 3% year over year. Professional services added $18.9 million but fell short of management's expectations due to weakness in managed services. Non-GAAP subscription gross margin was 74%, compared with negative 22% for services, illustrating that the company's economics depend primarily on recurring software rather than service implementation.
On September 2, 2026, management said that more than 200 customer engagements involving Agentic AI and Copilot were underway and that annual recurring revenue from AI-native products had increased 40% year over year. The company has more than 300 AI engineers, and field engineers participate in more than 70% of AI-related customer engagements. However, management explained that implementing Agentic solutions may take two or three months because of the need to design workflows and connect APIs and contextual data, so not every engagement converts immediately into revenue.
Automated analysis for informational purposes only — not investment advice.
Total remaining performance obligations reached $1.03 billion at the end of the second quarter of fiscal year 2027, up 11% year over year, marking the second consecutive quarter of double-digit growth. Current remaining performance obligations were $614 million and increased only 3% because several large renewals and expansions extended for as long as five years. This increased the average duration of annual recurring revenue contracts by more than two months for the second consecutive quarter, improving contractual visibility but delaying the appearance of some growth in current remaining performance obligations and revenue.
Professional services recorded revenue of $18.9 million and a non-GAAP gross margin of negative 22% in the second quarter of fiscal year 2027. Management attributed the result to partner cost overruns and execution challenges in one region, alongside a comparison with a high base resulting from the completion of large implementation projects. The company expects services revenue of approximately $19 million in the third quarter of fiscal year 2027, down 34% year over year, and a negative margin of 15%, while Rory Read is targeting breakeven margins for this business in the near term.
The company raised its expected subscription revenue range to $782.5–784.5 million, equivalent to 4% annual growth at the midpoint, and maintained expected total revenue at $866.5–868.5 million, representing 1% growth. It expects non-GAAP operating income of between $139 million and $141 million, an operating margin of 16%, and diluted earnings per share of approximately $0.47. It also lowered its professional services forecast to $84 million and estimated free cash flow at approximately $135 million with a margin of 16%, due to lower services collections and higher spending on hosting environments.
The average analyst price target is $7.25, with a low target of $6.25 and a high target of $8, while the consensus rating is Neutral. The highest target is below the 52-week range high of $8.275, and the average lies between the range low of $4.715 and its high. This caution is consistent with total revenue growth of 1% and negative services margins, despite 11% growth in remaining performance obligations and a 40% increase in annual recurring revenue from AI-native products in the second quarter of fiscal year 2027.