Sprinklr (CXM) | News Based Sentiment Analysis

• On September 3, 2025, Sprinklr announced Q2 FY2026 total revenue of $212.0 million, an 8% increase year-over-year, exceeding the $205.5 million consensus estimate. This positive revenue news was tempered by a slight miss on non-GAAP diluted EPS, which came in at $0.13, just above the $0.10 estimate but lower than previous quarters.
• Following the Q2 results, Sprinklr completed a $150 million share buyback program, repurchasing 16.5 million shares for approximately $140 million. Simultaneously, Scott Millard was appointed Chief Revenue Officer, effective September 22, 2025, bringing AI sales experience from Dell Technologies, signaling a focus on leveraging artificial intelligence.
• During the September 4, 2025 earnings call, the company highlighted a record $38.2 million in non-GAAP operating income (an 18% margin) and a net dollar retention rate of 102.2%. However, analysis on September 10, 2025, revealed this retention rate was down from 107% in Q4 FY2025, indicating potential challenges in retaining and expanding existing customer relationships.
• Despite the positive revenue news, Sprinklr’s stock experienced a decline of 8.14% on September 3, 2025, due to cautious sentiment regarding a softer Q3 outlook and the company being described as in a “transition year.” Analyst reactions were mixed, with Stifel lowering its price target to $8.00 from $10.00 on the same day, while Rosenblatt maintained a “Buy” rating with a $12.00 target.
• Insider selling continued to be a concern, with insiders collectively selling 9.6 million shares valued at over $78 million recently, as of September 13, 2025. A director notably sold 3,000,000 shares at an average price of $8.37, totaling $25,110,000.00, representing a 79.66% decrease in their ownership.
• Sprinklr raised its full-year FY2026 guidance on September 3, 2025, now expecting total revenue of $837 million to $839 million (up from around $826 million) and non-GAAP EPS of $0.42 to $0.43 (up from a consensus of $0.300). However, on September 8, 2025, the stock traded down 5.6% following the guidance update, despite exceeding consensus estimates.
• Recent analyst activity showed a mixed outlook, with Barclays lowering its price target from $9.00 to $8.00 on September 4, 2025 (an 11.11% decrease), while Wall Street Zen upgraded Sprinklr to “Buy” on September 5, 2025. GuruFocus highlighted robust revenue growth of 7.50% and an ROE of 23.74% on September 11, 2025.
• S Squared Technology LLC increased its stake in Sprinklr by 78% in the first quarter, now holding 445,039 shares valued at approximately $3.7 million, as of September 13, 2025, signaling some institutional confidence despite recent insider sales.

The Investment Story: September was a month of conflicting signals for Sprinklr, with strong revenue growth and raised guidance offset by a declining net dollar retention rate, significant insider selling, and mixed analyst sentiment. The company appears to be in a transitional phase, navigating challenges while investing in AI.

What It Means for Investors: The mixed signals suggest caution is warranted. While the company is making progress on profitability and revenue, the declining retention rate and insider sales raise questions about long-term growth and management confidence. The wide range of analyst price targets reflects significant uncertainty.

Looking Ahead: Investors should closely monitor Sprinklr’s Q3 performance, the impact of the new Chief Revenue Officer, and the trends in net dollar retention. Continued insider trading activity will also be a key indicator to watch.

The Bottom Line: Sprinklr remains a turnaround story with potential, but the mixed signals this month highlight the risks. Investors should proceed with caution and closely monitor key performance indicators before making investment decisions.