Sprinklr (CXM): Buy, Sell, or Hold Post Q4 Earnings?

Sprinklr has gotten torched over the last six months - since September 2025, its stock price has dropped 22.8% to $5.96 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Is now the time to buy Sprinklr, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Do We Think Sprinklr Will Underperform?

Even though the stock has become cheaper, we're sitting this one out for now. Here are three reasons you should be careful with CXM and a stock we'd rather own.

1. Weak Billings Point to Soft Demand

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Sprinklr’s billings came in at $317.4 million in Q4, and over the last four quarters, its year-on-year growth averaged 6%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers.

2. Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Sprinklr’s revenue to rise by 1.5%, a deceleration versus its 17.2% annualized growth for the past five years. This projection is underwhelming and suggests its products and services will see some demand headwinds.

3. Operating Margin Rising, Profits Up

While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This metric shows how much revenue remains after accounting for all core expenses – everything from the cost of goods sold to sales and R&D.

Looking at the trend in its profitability, Sprinklr’s operating margin rose by 1.7 percentage points over the last two years, as its sales growth gave it operating leverage. Its operating margin for the trailing 12 months was 4.7%.

Final Judgment

Sprinklr doesn’t pass our quality test. After the recent drawdown, the stock trades at 1.7× forward price-to-sales (or $5.96 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are superior stocks to buy right now. We’d recommend looking at a safe-and-steady industrials business benefiting from an upgrade cycle.

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