On Thursday, Rosenblatt Securities adjusted its outlook on Sprinklr Inc (NYSE:CXM), increasing the price target from $10.50 to $12.00 while sustaining a Buy rating on the company’s shares. The decision follows Sprinklr’s impressive fourth-quarter performance, which was notably the first under the direction of their new Chief Executive Officer. According to InvestingPro data, the stock has shown significant momentum with a ~14% return over the past week, while maintaining a strong financial position with more cash than debt on its balance sheet.
The firm’s analysts highlighted that Sprinklr’s recent success is a direct result of the CEO’s swift actions to overcome historical challenges in implementation and delivery. By focusing on expanding sales with the company’s top 400 - 500 clients, the company has started to see significant operational efficiency and increased customer value. This strategy has contributed to impressive margins, with InvestingPro data showing a robust gross profit margin of ~73%.
Sprinklr reported a fourth-quarter revenue growth of 4% year-over-year, which is 1% higher than the consensus estimate and exceeded expectations by $2 million. This increase was primarily due to a 3% year-over-year rise in Subscription Services, again surpassing the consensus estimates.
The company also reported operating margins of 13% and pro forma earnings per share (PF EPS) of $0.10, both of which outperformed the guidance and estimates, which were set at 9% and $0.07, respectively. These figures reflect Sprinklr’s ongoing transformation, focusing on stability and growth through improved execution and consistent performance.
In light of these developments, Rosenblatt’s revised price target of $12.00 is supported by their updated fiscal year 2026 estimates. The analysts at Rosenblatt expressed confidence in Sprinklr’s strategic updates, including the enhancement of margins and targeted customer engagement initiatives, which they believe lay a strong foundation for the company’s future.
In other recent news, Sprinklr Inc. reported its fourth-quarter fiscal year 2025 results, surpassing analyst expectations with non-GAAP earnings per share (EPS) of $0.10, compared to the forecasted $0.07. The company’s revenue reached $202.5 million, slightly above the consensus estimate of $201 million, marking a 4% year-over-year increase. Sprinklr’s guidance for the first quarter of fiscal year 2026 projects non-GAAP EPS of $0.10 and revenues between $201.5 million and $202.5 million, indicating a 3% year-over-year growth at the midpoint. For the full fiscal year 2026, the company expects revenue between $821.5 million and $823.5 million, surpassing the consensus estimate of $819.7 million.
JMP Securities maintained its Market Outperform rating on Sprinklr, with a price target of $17, following the company’s robust earnings performance. Rosenblatt analyst Catharine Trebnick highlighted Sprinklr’s strong demand and effective cost management, noting the company’s operating margin improvement to 16%, above the anticipated 12%. This improvement was attributed to a recent workforce reduction of 15% and strategic cost-control measures.
Sprinklr’s President and CEO, Rory Read, expressed confidence in the company’s strategic transition towards sustainable growth, emphasizing the importance of large customer deals and product innovation. The company reported an 18% year-over-year increase in customers generating over $1 million in annual subscription revenue, reflecting strong demand for its AI-driven customer experience platform. As Sprinklr navigates a challenging market landscape, these developments indicate a cautious yet steady growth trajectory.
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