How Investors May Respond To Sprinklr (CXM) Q3 Beat And New 2026 Revenue Guidance

• In early December 2025, Sprinklr reported third-quarter revenue of US$219.07 million and net income of US$2.9 million, alongside new fourth-quarter and full-year 2026 revenue guidance of US$216.5–217.5 million and US$853–854 million, respectively.
• Award recognition from ADWEEK and L’Oréal’s large-scale use of Sprinklr Advocacy, which generated very large organic impressions and a 4x return on investment, underline how major brands are using Sprinklr’s AI-native platform to run social media, customer experience, and employee advocacy at global scale.
• We’ll now explore how stronger-than-expected Q3 execution, including L’Oréal’s employee advocacy success, may influence Sprinklr’s existing investment narrative.

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Sprinklr Investment Narrative Recap

To own Sprinklr, you need to believe its AI-native, unified customer experience platform can deepen relationships with large global brands faster than churn, pricing pressure, and competition erode that progress. The stronger than expected Q3 revenue and reaffirmed guidance help the near term execution story, but softer profitability and ongoing transformation efforts keep customer retention and margin pressure as the key watchpoints for now, rather than materially changing the main catalyst or risk.

The most relevant update here is Sprinklr’s Q3 earnings, where revenue of US$219.07 million and net income of US$2.9 million came in ahead of market expectations while management emphasized Project Bearhug and improving renewal rates. When you pair that with L’Oréal’s 33 million organic impressions and 4x return from Sprinklr Advocacy, it highlights how stronger large account execution could support the core catalyst of deeper enterprise adoption and expansion.

But even with these positives, investors should be aware that rising AI related cloud and data costs could still...

Read the full narrative on Sprinklr (it's free!)

Sprinklr's narrative projects $1.0 billion revenue and $36.8 million earnings by 2028. This requires 8.0% yearly revenue growth but implies an earnings decrease of $83.4 million from $120.2 million today.

Uncover how Sprinklr's forecasts yield a $11.00 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see Sprinklr’s fair value between US$7.79 and US$12.20, reflecting quite different expectations. Set against this, the recent Q3 beat and renewed focus on stabilizing renewals highlight how much future performance may hinge on improving enterprise retention and monetizing its AI capabilities, so it is worth weighing several viewpoints before forming a view.

Explore 4 other fair value estimates on Sprinklr - why the stock might be worth as much as 52% more than the current price!

Build Your Own Sprinklr Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sprinklr research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Sprinklr research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sprinklr's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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