Update shared on 23 Oct 2025
Fair value Increased 5.32%Analyst Commentary Highlights Mixed Outlook for Sprinklr Amid Modest Valuation Increase
Narrative Update on Sprinklr
Analysts have modestly raised their fair value estimate for Sprinklr to $11.00. This is due to mixed guidance and executive changes, which have been balanced by stronger recent results and improved long-term profitability expectations.
Analyst Commentary
Recent analyst research reflects a range of perspectives regarding Sprinklr's outlook following its latest quarterly results and executive updates. Their commentary highlights several key points surrounding the company's valuation, execution risks, and growth trajectory.
Bullish Takeaways
- Recent quarterly performance surpassed expectations, demonstrating the company's ability to execute and adapt in a competitive landscape.
- Updated long-term guidance, including a beat and raise to FY26 targets, supports improved profitability expectations and provides some confidence in the firm’s strategic direction.
- Ongoing enhancements in profitability are seen as a positive factor that could support upward revisions to fair value if sustained.
Bearish Takeaways
- Analysts remain cautious about the company’s short-term outlook, noting that guidance for the coming quarter remains mixed and could indicate execution challenges.
- The recent departure of the CFO has become a focal point for investors, potentially raising questions around stability and leadership continuity.
- While headline results were positive, concerns persist about the identification of sustainable growth drivers needed for longer-term optimism on the stock.
- Some believe the company’s share price remains pressured by these uncertainties, as reflected in revised, lower price targets.
What's in the News
- Anthony Coletta has been appointed as Sprinklr's next Chief Financial Officer, effective October 7, 2025. He will succeed Manish Sarin and brings over 20 years of global finance leadership experience, most recently from SAP (Key Developments).
- Sprinklr has launched next-generation AI capabilities, including Sprinklr Copilot and Sprinklr AI Agents. These tools aim to unify data, teams, and tools for improved customer experience and operational efficiency (Key Developments).
- The company completed a share repurchase of 17,616,854 shares, totaling $150 million and representing 6.83% of outstanding shares. This was conducted under its buyback program from June to August 2025 (Key Developments).
- Updated earnings guidance has been issued, projecting third quarter 2025 subscription revenue between $186 million and $187 million, and total revenue between $209 million and $210 million. Full-year 2026 guidance forecasts subscription revenue up to $748 million, with total revenue up to $839 million (Key Developments).
- Chief Financial Officer Manish Sarin will depart the company on September 19, 2025, after serving on the executive leadership team (Key Developments).
Valuation Changes
- Fair Value Estimate has risen modestly from $10.44 to $11.00.
- Discount Rate has increased slightly from 8.47% to 8.48%.
- Revenue Growth projection remains unchanged at approximately 7.99%.
- Net Profit Margin has improved from 3.56% to 3.88%.
- Future P/E Ratio has decreased from 79.0x to 75.3x. This indicates lower expected future valuation multiples.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.