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1. Company Snapshot

1.a. Company Description

Sprinklr, Inc.provides enterprise cloud software products worldwide.The company offers Unified Customer Experience Management platform, a purpose-built to analyze unstructured customer experience data, built to scale across future and modern channels, and integrates all stages of the customer journey.


Its products include Modern Research that enables its customers to listen, learn from, and act on insights gleaned from modern channels; Modern Care that enables brands to listen to, route, resolve and analyze customer service issues across modern and traditional channels; Modern Marketing and Advertising enables global brands to plan, create, publish, optimize, and analyze their organic/owned marketing content and paid advertising campaigns across modern channels; and Social Engagement and Sales allows customers listen to, triage, engage, and analyze conversations across modern channels.The company also provides professional, managed, training, and consultancy services.Sprinklr, Inc.


was founded in 2009 and is headquartered in New York, New York.

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1.b. Last Insights on CXM

Sprinklr's recent performance has been impacted by mixed factors. The company's Q3 earnings beat estimates, with earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.09 per share. However, net dollar retention remains weak, limiting confidence in a swift recovery. The company has also unveiled AI-powered innovations, including Sprinklr Copilot and Sprinklr AI Agents, to help brands transform customer experiences. Additionally, Aviva PLC raised its stake in Sprinklr by 148.4% during Q2. Despite this, the stock has a "Hold" rating from brokerages, with two sell, nine hold, and two buy recommendations.

1.c. Company Highlights

2. Sprinklr's Q3 FY2026 Earnings: A Stronger Than Expected Performance

Sprinklr reported a total revenue of $219.1 million for Q3 FY2026, representing a 9% year-over-year growth, with subscription revenue growing 5% to $190.3 million. The company achieved a non-GAAP operating income of $33.5 million, resulting in a 15% non-GAAP operating margin. The actual EPS came out at $0.01116, missing estimates of $0.09. The company's gross margins on a non-GAAP basis were 77% for subscription and 5% for professional services, resulting in a total non-GAAP gross margin of 67%.

Publication Date: Dec -04

📋 Highlights
  • Revenue Growth:: Q3 total revenue rose 9% YoY to $219.1M, with subscription revenue up 5% to $190.3M.
  • Non-GAAP Profitability:: Generated $33.5M in non-GAAP operating income, achieving a 15% margin.
  • Customer Retention & Expansion:: Subscription net dollar retention hit 102%, with 145 customers contributing $1M+ in annualized revenue.
  • AI-Driven Growth:: Platform’s AI capabilities enabled a Latin American bank to boost agent productivity by 500% and reduce handling times by 50%.
  • Guidance Upside:: FY2026 subscription revenue raised to $754–755M, with full-year free cash flow estimated at $110M excluding restructuring costs.

Key Highlights and Customer Engagement Trends

The company's key indicators and customer engagement trends are moving in the right direction, with early momentum from Project Bearhug, an initiative focused on deepening engagement with top 700 customers. The company shared customer success stories, including a leading Latin American bank that expanded its partnership with Sprinklr, achieving a 35% increase in case deflection, 50% faster handling times, and a 500% boost in agent productivity. The subscription revenue-based net dollar retention rate was 102% in Q3, indicating a strong customer retention.

Guidance and Outlook

For Q4 FY2026, the company expects total revenue of $216.5-217.5 million and subscription revenue of $191-192 million. For the full year FY 2026, the company raised its expectations for subscription revenue to $754-755 million and total revenue to $853-854 million, with a non-GAAP operating income of $137.5-138.5 million. The company estimates full-year free cash flow of $110 million, excluding restructuring costs. Analysts estimate next year's revenue growth at 5.4%.

Valuation Metrics

With a P/S Ratio of 2.36 and an EV/EBITDA of 28.22, the market seems to be pricing in a moderate growth expectation. The company's ROE of 19.14% and ROIC of 10.8% indicate a relatively strong profitability. The Free Cash Flow Yield of 7.03% is also attractive, suggesting a potential undervaluation.

Strategic Initiatives and AI Focus

The company is focused on driving durable growth through its AI-native platform, which enables brands to unify customer experience data across channels. Sprinklr has over 300 AI skills and will continue to invest in adding more capabilities. The AI discussion is significant, with the platform being AI-native for the last nine or ten years, and having a strong foundation in social and unstructured data. The company sees opportunities for growth and margin expansion through AI use cases.

3. NewsRoom

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Sprinklr (CXM) Reports Q3 Earnings: What Key Metrics Have to Say

01:31

Source: zacks.com

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L'Oréal Drives Brand Awareness and Employee Engagement on Social Media with Sprinklr Advocacy

Dec -04

Source: businesswire.com

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Sprinklr, Inc. (CXM) Q3 2026 Earnings Call Transcript

Dec -03

Source: seekingalpha.com

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Sprinklr (CXM) Q3 Earnings and Revenues Beat Estimates

Dec -03

Source: zacks.com

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Sprinklr Announces Third Quarter Fiscal 2026 Results

Dec -03

Source: businesswire.com

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Gear Up for Sprinklr (CXM) Q3 Earnings: Wall Street Estimates for Key Metrics

Nov -27

Source: zacks.com

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Sprinklr and SAMY Strategic Alliance Unleash Next-Gen Customer Experience Solutions for Global Brands

Nov -20

Source: businesswire.com

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Everest Group Again Recognizes Engageware as Major Contender in Conversational AI and AI Agents in Customer Experience Management (CXM) Products PEAK Matrix® Assessment

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.10%)

6. Segments

Subscription

Expected Growth: 15.1%

Growing demand for social media management platforms, increasing adoption of cloud-based solutions, and rising need for content creation and analytics tools drive the growth of Sprinklr's subscription-based model.

Professional Services

Expected Growth: 15.1%

Growing demand for social media management platforms, increasing adoption of digital transformation strategies, and the need for customized solutions to maximize ROI drive the growth of Professional Services from Sprinklr, Inc.

7. Detailed Products

Modern Sales & Engagement

A unified platform for sales, customer service, and marketing teams to engage with customers across multiple channels

Modern Marketing & Advertising

A comprehensive platform for marketing teams to plan, execute, and measure omnichannel marketing campaigns

Modern Care

A customer service platform that enables brands to provide seamless, omnichannel support to customers

Social Media Management

A platform for managing social media presence, content, and engagement across multiple channels

Content Marketing

A platform for creating, managing, and distributing content across multiple channels

Influencer Marketing

A platform for discovering, collaborating, and measuring influencer partnerships

Customer Experience Management

A platform for managing customer feedback, sentiment, and experience across multiple channels

8. Sprinklr, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Sprinklr's platform is highly customizable, making it difficult for substitutes to emerge. However, the social media management industry is highly competitive, and new entrants could potentially disrupt the market.

Bargaining Power Of Customers

Sprinklr's customers are typically large enterprises with complex social media management needs. While they may have some bargaining power, Sprinklr's platform is highly specialized, limiting their ability to negotiate prices.

Bargaining Power Of Suppliers

Sprinklr's suppliers are primarily technology providers, and the company has a diversified supply chain. This limits the bargaining power of individual suppliers.

Threat Of New Entrants

The social media management industry is highly competitive, and new entrants could potentially disrupt the market. However, Sprinklr's established customer base and high barriers to entry mitigate this threat.

Intensity Of Rivalry

The social media management industry is highly competitive, with many established players. Sprinklr competes with companies like Hootsuite, Buffer, and Sprout Social, among others.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.67%
Debt Cost 3.95%
Equity Weight 95.33%
Equity Cost 8.28%
WACC 8.08%
Leverage 4.90%

11. Quality Control: Sprinklr, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sprinklr

A-Score: 5.1/10

Value: 3.5

Growth: 8.8

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
JFrog

A-Score: 5.0/10

Value: 4.5

Growth: 7.0

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
CleanSpark

A-Score: 4.5/10

Value: 5.6

Growth: 4.4

Quality: 9.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
PowerSchool

A-Score: 3.9/10

Value: 4.6

Growth: 7.4

Quality: 3.7

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Envestnet

A-Score: 3.7/10

Value: 3.7

Growth: 3.6

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
nCino

A-Score: 3.4/10

Value: 3.0

Growth: 7.4

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.9$

Current Price

7.9$

Potential

-0.00%

Expected Cash-Flows