Key Points
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It posted satisfying growth on both the top and bottom lines in the fourth quarter.
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Both metrics also topped the average analyst estimates.
Sprinklr (NYSE: CXM) was spraying gains on its shareholders in a prosperous Wednesday trading session. On a generally forgettable day for the stock market, the customer experience management solutions company was an outperformer, posting an over 6% increase. That was in reaction to a very well-received earnings report.
A shower of good results
Well before market open that day, Sprinklr took the lid off its fourth quarter and full-year fiscal 2026 figures. In the prior period, the company earned revenue of just under $221 million, up 9% year over year. That was on the back of a 6% rise in subscription revenue to over $193 million. The specialized tech company’s net income not under generally accepted accounting principles (GAAP) leaped 16% to almost $32 million, or $0.13 per share.
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Both line items easily topped the consensus analyst estimates of $215.5 million for revenue and $0.09 per share for non-GAAP (adjusted) net income.
In recent times, Sprinklr has been pivoting from social media management solutions to a purveyor of artificial intelligence (AI)-powered customer experience tools. The company quoted CEO Rory Read as saying that the quarter “capped a pivotal year” in this transformation.
More growth anticipated
Sprinklr proffered guidance for its current (first) quarter and the entirety of fiscal 2027. For the year, the company anticipates booking $869 million to $871 million in revenue, fueled by subscription revenue that should come in at $778 million to $780 million. Per-share, adjusted net income should be $0.47 to $0.48.
Both ranges sit above the fiscal 2026 results of $857 million on the top line and the adjusted profitability of $0.37 per share. The consensus analyst estimates for the pair of metrics are almost $882 million and $0.47, respectively.
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That revenue estimate doesn’t compare well to the company’s guidance, but I wouldn’t be too worried about that. Fourth-quarter growth was satisfying, and management is clearly anticipating that momentum will continue. It feels like Sprinklr’s transformation wasn’t just a smart idea, it was (and is) a successful one. I think the market’s Wednesday bullishness was entirely justified.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.