Investors in Sprinklr (NYSE: CXM) are bracing for a pivotal week as the customer experience software provider prepares to release its quarterly results. The upcoming earnings announcement, scheduled for Wednesday before market open, is widely anticipated to determine whether the stock’s recent upward trajectory can be sustained or if it will retreat once more.
Financial Projections and Market Expectations
For its second quarter of fiscal year 2026, Wall Street anticipates Sprinklr will report revenue of $205.39 million with earnings per share of $0.10. The company faces a high bar, having previously exceeded expectations last quarter by posting $0.12 EPS against projections of $0.10, while also slightly surpassing revenue forecasts with $205.50 million. Sprinklr’s own guidance calls for earnings of $0.10 per share on revenue between $205 million and $206 million, figures the market now expects the company to deliver.
Divergent Signals from Market Participants
A notable contrast has emerged between analyst sentiment and institutional investor activity. The current consensus rating among market experts stands at “Hold,” with 47% of the 15 covering firms recommending investors maintain their positions. Only 27% advocate buying shares, while 13% advise selling. This cautious stance was reinforced in early August when Wall Street Zen downgraded its assessment from “Buy” to “Hold.”
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Institutional investors, however, appear more optimistic. Charles Schwab Investment Management increased its stake by 4.0% during the second quarter, bringing its total holdings to over one million Sprinklr shares. Other significant buyers included Susquehanna Fundamental Investments, Tudor Investment Corp, and Nuveen Asset Management, with the latter expanding its position by a substantial 139.6%.
Strategic Developments and Market Position
Beyond the financial metrics, market participants will be monitoring the company’s strategic direction. Recent executive changes, including the departure of the Chief Accounting Officer and the appointment of a new Head of Global Services, may provide additional context for the company’s operational focus. Furthermore, CEO Rory Read’s scheduled appearance at the Citi Global TMT Conference the day after earnings could offer further insights into the company’s roadmap.
From a technical perspective, Sprinklr shares are positioned at a critical juncture. Having recovered significantly from their 52-week lows, the stock now approaches key moving averages that could determine its near-term direction. The upcoming earnings release will likely determine whether the current upward trend gathers momentum or validates analyst concerns.
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