Sprinklr's growth stalls, but AI demand and raised guidance offer hope
Weak billings and slowing revenue growth Sprinklr's billings grew only 5.3% over the last four quarters, and revenue growth is expected to stall after years of double-digit gains. This signals soft demand and competitive pressure, which weighs on the stock price.
This is the core fundamental problem driving the negative view on CXM.
Disappointing EPS guidance Although Q1 revenue beat expectations, the company's EPS guidance for the next quarter missed significantly. This overshadowed the revenue beat and raised concerns about profitability, pushing the stock down.
Guidance miss is a key negative catalyst for the stock.
AI-driven demand lifts enterprise software Enterprise software stocks, including Sprinklr, surged as AI is boosting software adoption. Strong results from Salesforce and others showed AI is a tailwind, not a threat. Sprinklr rose 7.2% in the sector rally.
This shows a positive external force that can lift CXM's price.
Raised subscription revenue guidance Sprinklr raised its FY2027 subscription revenue forecast and beat Q2 EPS estimates, despite a slight revenue miss. The company also highlighted a $20 million deal and growing remaining performance obligations, signaling future revenue visibility.
This is the latest positive update that could support the stock.