Sprinklr (NYSE:CXM) Shares Down 5.4% – What’s Next?

Sprinklr, Inc. (NYSE:CXM)’s stock price dropped 5.4% during mid-day trading on Tuesday . The company traded as low as $7.71 and last traded at $7.7650. 2,613,617 shares changed hands during trading, a decline of 22% from the average session volume of 3,358,836 shares. The stock had previously closed at $8.21.

Sprinklr News Roundup

Here are the key news stories impacting Sprinklr this week:

• Positive Sentiment: Sprinklr reported fiscal Q2 2027 adjusted earnings of $0.11 per share, exceeding the $0.10 analyst consensus. Full-year EPS guidance of $0.47 is also above the $0.44 consensus, suggesting some support for profitability expectations. Sprinklr Q2 earnings report
• Positive Sentiment: The company forecast fiscal 2027 subscription revenue of approximately $782.5 million to $784.5 million, while maintaining full-year revenue guidance of $866.5 million to $868.5 million. The annual revenue range is broadly in line with estimates, indicating that management has not materially reduced its overall outlook. Sprinklr fiscal 2027 forecast
• Neutral Sentiment: Management highlighted services margins and continued investment in its platform, including artificial intelligence, as areas of focus. These investments could support longer-term product development but may pressure near-term margins and earnings.
• Negative Sentiment: Fiscal Q2 revenue of $213.74 million was slightly below the $214.45 million consensus and increased only 0.8% year over year. EPS also declined from $0.13 a year earlier, reinforcing concerns about decelerating growth. Sprinklr Q2 revenue and growth report
• Negative Sentiment: Third-quarter guidance calls for EPS of $0.11 and revenue of $215 million to $216 million, below analyst expectations of $0.12 and $216.3 million, respectively. The cautious near-term outlook appears to be the primary reason for the market’s negative reaction.
• Negative Sentiment: Analysts and commentary also questioned whether Sprinklr is generating meaningful incremental revenue from its AI offerings, citing slowing subscription and backlog growth, margin compression, and higher AI-related costs. Sprinklr AI analysis

Analysts Set New Price Targets

Several research firms have recently commented on CXM. Citigroup reissued a “neutral” rating on shares of Sprinklr in a research note on Thursday. Rosenblatt Securities reaffirmed a “buy” rating and set a $8.50 target price on shares of Sprinklr in a research note on Thursday. Weiss Ratings raised shares of Sprinklr from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Finally, DA Davidson decreased their price target on shares of Sprinklr from $6.25 to $6.00 and set a “neutral” rating for the company in a research report on Thursday, June 4th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $7.75.

Sprinklr Stock Performance

The firm has a market capitalization of $1.63 billion, a price-to-earnings ratio of 58.10 and a beta of 0.65. The company has a 50-day moving average price of $6.34 and a 200-day moving average price of $5.79.

Sprinklr (NYSE:CXM) last issued its earnings results on Wednesday, September 2nd. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.01. The business had revenue of $213.74 million for the quarter, compared to analyst estimates of $214.45 million. Sprinklr had a return on equity of 8.13% and a net margin of 3.29%.The business’s quarterly revenue was up .8% on a year-over-year basis. During the same quarter last year, the company earned $0.13 EPS. Sprinklr has set its FY 2027 guidance at 0.470-0.470 EPS and its Q3 2027 guidance at 0.110-0.110 EPS. On average, research analysts expect that Sprinklr, Inc. will post 0.23 earnings per share for the current fiscal year.

Insider Activity

In other news, General Counsel Jacob Scott sold 71,585 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $6.97, for a total value of $498,947.45. Following the transaction, the general counsel owned 576,827 shares of the company’s stock, valued at approximately $4,020,484.19. The trade was a 11.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Joy Corso sold 33,635 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $5.30, for a total value of $178,265.50. Following the sale, the insider owned 1,175,616 shares of the company’s stock, valued at $6,230,764.80. This trade represents a 2.78% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 395,880 shares of company stock valued at $2,210,116. Insiders own 25.18% of the company’s stock.

Hedge Funds Weigh In On Sprinklr

Several institutional investors have recently bought and sold shares of the company. SG Americas Securities LLC raised its position in Sprinklr by 84.9% during the 1st quarter. SG Americas Securities LLC now owns 8,377,479 shares of the company’s stock worth $50,265,000 after buying an additional 3,846,652 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Sprinklr by 3.5% in the fourth quarter. Morgan Stanley now owns 7,568,609 shares of the company’s stock valued at $58,884,000 after acquiring an additional 252,552 shares in the last quarter. Jefferies Financial Group Inc. increased its stake in shares of Sprinklr by 19.4% during the fourth quarter. Jefferies Financial Group Inc. now owns 5,590,002 shares of the company’s stock worth $43,490,000 after acquiring an additional 908,002 shares during the period. Geode Capital Management LLC increased its stake in shares of Sprinklr by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 2,722,671 shares of the company’s stock worth $21,187,000 after acquiring an additional 21,321 shares during the period. Finally, Dimensional Fund Advisors LP raised its holdings in Sprinklr by 19.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,648,640 shares of the company’s stock worth $15,891,000 after purchasing an additional 438,083 shares in the last quarter. 40.19% of the stock is owned by institutional investors and hedge funds.

Sprinklr Company Profile

Sprinklr, Inc (NYSE: CXM) is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale.

Sprinklr’s platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities.