JMP maintains Sprinklr stock with $17 target after earnings

Published 13/03/2025, 08:04 pm
JMP maintains Sprinklr stock with $17 target after earnings

Sprinklr’s guidance for the first quarter of fiscal year 2026 was also slightly above analyst expectations. The company anticipates non-GAAP EPS of $0.10 on projected revenues between $201.5 million and $202.5 million, which would represent a 3% year-over-year increase at the midpoint. Subscription revenue is expected to be between $182 million and $183 million, also up 3% year-over-year at the midpoint. Professional services revenue is forecasted to be around $19.5 million, with operating income projected to be between $31.5 million and $32.5 million.The positive earnings report and the subsequent stock surge reflect Sprinklr’s ability to outperform in a challenging market. The company’s guidance suggests a cautious but steady growth trajectory in the face of broader market headwinds. InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, which reveals 13 additional ProTips and detailed financial metrics for Sprinklr. As the company continues to navigate the evolving market landscape, investors will be watching closely to see if it can maintain its momentum and continue to exceed expectations.

Sprinklr’s guidance for the first quarter of fiscal year 2026 was also slightly above analyst expectations. The company anticipates non-GAAP EPS of $0.10 on projected revenues between $201.5 million and $202.5 million, which would represent a 3% year-over-year increase at the midpoint. Subscription revenue is expected to be between $182 million and $183 million, also up 3% year-over-year at the midpoint. Professional services revenue is forecasted to be around $19.5 million, with operating income projected to be between $31.5 million and $32.5 million.The positive earnings report and the subsequent stock surge reflect Sprinklr’s ability to outperform in a challenging market. The company’s guidance suggests a cautious but steady growth trajectory in the face of broader market headwinds. InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, which reveals 13 additional ProTips and detailed financial metrics for Sprinklr. As the company continues to navigate the evolving market landscape, investors will be watching closely to see if it can maintain its momentum and continue to exceed expectations.

Sprinklr’s guidance for the first quarter of fiscal year 2026 was also slightly above analyst expectations. The company anticipates non-GAAP EPS of $0.10 on projected revenues between $201.5 million and $202.5 million, which would represent a 3% year-over-year increase at the midpoint. Subscription revenue is expected to be between $182 million and $183 million, also up 3% year-over-year at the midpoint. Professional services revenue is forecasted to be around $19.5 million, with operating income projected to be between $31.5 million and $32.5 million.

The positive earnings report and the subsequent stock surge reflect Sprinklr’s ability to outperform in a challenging market. The company’s guidance suggests a cautious but steady growth trajectory in the face of broader market headwinds. As Sprinklr continues to navigate the evolving market landscape, investors will be watching closely to see if the company can maintain its momentum and continue to exceed expectations.

In other recent news, Sprinklr announced its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.10, compared to the projected $0.07. The company reported a revenue of $202.5 million, slightly exceeding the anticipated $200.52 million. Looking ahead, Sprinklr’s guidance for the first quarter of 2026 is optimistic, with an EPS forecast of $0.10 against the consensus of $0.08, and revenue expectations ranging from $201.5 million to $202.5 million. Additionally, Sprinklr’s full-year 2026 revenue guidance is set between $821.5 million and $823.5 million, surpassing the consensus estimate of $819.7 million.

Analyst Catharine Trebnick from Rosenblatt noted Sprinklr’s strong performance, highlighting the company’s operating margin of 16%, which was above the anticipated 12%, attributing this to effective cost management and workforce reduction. The company’s strategic transition towards sustainable growth was emphasized by CEO Rory Read, who attributed the success to large customer deals. Despite a decline in GAAP operating income, Sprinklr’s financial outlook remains positive, with subscription revenue expected to rise for fiscal year 2026.

Furthermore, Sprinklr has undertaken a significant restructuring effort, reducing its global workforce by approximately 15% to better align employee costs with current business needs and free up capital for incremental investments. The restructuring expenses are projected to be around $22 million, with the majority to be booked in the first quarter of fiscal year 2026. The company’s strategic focus on enhancing its AI-driven customer experience platform seems to be resonating well with the market, as evidenced by the 18% growth in customers generating over $1 million in annual subscription revenue.

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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