Title

Earning Preview: Sprinklr, Inc. this quarter’s revenue is expected to increase by 8.15%, and institutional views are bearish

Abstract

Sprinklr, Inc. will release results Pre-Market on March 11, 2026, with the street tracking revenue, margins, and adjusted EPS following last quarter’s outperformance and looking for updates on subscriptions, services mix, and near-term profitability.

Market Forecast

For the current quarter, forecasts indicate revenue of 216.92 million, up 8.15% year over year, adjusted EPS around $0.10, up 34.81% year over year, and EBIT of 29.02 million, up 60.53% year over year. Forecasts for gross and net margins were not provided; last quarter’s gross margin was 66.41% and net margin was 1.33%, providing a reference point for investors gauging profitability trends. Subscriptions remain the core of Sprinklr, Inc.’s model and are expected to carry the growth profile as the services mix stays comparatively small and margin dilutive. The most promising segment continues to be subscriptions, which delivered 190.30 million last quarter, supported by scale and recurring contracts that anchor predictability in top-line performance.

Last Quarter Review

Sprinklr, Inc. reported last quarter revenue of 219.07 million, a gross profit margin of 66.41%, GAAP net profit attributable to the parent company of 2.90 million with a net profit margin of 1.33%, and adjusted EPS of $0.12, with year-over-year growth of 9.16% for revenue and 20.00% for EPS. A key highlight was broad-based outperformance versus forecasts: revenue exceeded the estimate by 9.87 million, EPS topped by approximately $0.03, and EBIT beat by 4.77 million while growing 43.95% year over year. Subscriptions contributed 190.30 million or 86.87% of revenue, with professional services at 28.77 million or 13.13%, illustrating a mix that continues to favor recurring, higher-margin software economics; sequentially, GAAP net profit declined by 76.98% quarter over quarter, signaling near-term variability in below-the-line items and margin flow-through.

Current Quarter Outlook

Main business trajectory

Subscriptions form the revenue backbone and are expected to remain the primary driver of growth and earnings quality this quarter. With total revenue forecast at 216.92 million, up 8.15% year over year, the setup implies continued expansion among existing customers and new wins, while sequential revenue is modeled lower versus the prior print, consistent with typical seasonality and the timing of deals. Investors will watch whether subscription momentum can offset a smaller and lower-margin services contribution, as mix shift toward subscriptions has historically supported gross margin resilience around the mid-60% range. Management’s execution on renewals and upsells typically determines the delta to top-line results, and the earnings power linked to subscriptions flows through operating leverage in periods of stable cost growth. The prior quarter’s adjusted EPS of $0.12 and EBIT growth of 43.95% year over year set a high bar for sustained profitability progress, though consensus for the current quarter embeds healthy, but not aggressive, assumptions with EPS around $0.10 and EBIT at 29.02 million. Against that backdrop, any update that points to higher net expansion rates, stronger attach of add-on modules, or improved deal linearity could support margin commentary even if headline revenue tracks near forecasts. Gross margin is not explicitly guided in the available forecasts, yet last quarter’s 66.41% provides a baseline for assessing the quality of revenue this quarter. If subscriptions remain a steady share of mix and discounting remains controlled, gross margin could hold within a similar band, underpinning the EBIT forecast that implies a 60.53% year-over-year increase. Investors will also compare net margin outcomes with last quarter’s 1.33% level, bearing in mind that GAAP net income can be sensitive to below-the-line items, including interest and one-offs, while adjusted EPS better reflects operating performance.

Most promising business: subscriptions

Subscriptions, at 190.30 million last quarter, represented 86.87% of revenue and anchor predictability for Sprinklr, Inc.’s model this quarter. The growth case within subscriptions is tied to multi-product adoption, steady enterprise retention, and expansion into adjacent use cases within existing accounts, each contributing to recurring revenue scale and smoother billings cadence. The broad-based revenue estimate increase of 8.15% year over year suggests ongoing strength in the installed base, with potential upside if larger, multi-year agreements closed earlier in the quarter. The services line at 28.77 million last quarter, representing 13.13% of revenue, plays a supporting role that can either aid implementations and customer success or pressure consolidated gross margin if it grows faster than subscriptions. A benign setup for gross margin would see services revenue growing proportionally or slower than subscriptions, particularly if subscriptions continue to account for the vast majority of incremental revenue. Clarity on new subscription cohorts, renewal rates, and module adoption will be pivotal to the sustainability of revenue growth and the conversion of top-line expansion into EBIT and EPS. Enterprise deal timing can introduce variability within a quarter, so commentary around linearity and the distribution of bookings will be closely scrutinized. Investors will look for signs that subscription revenue momentum is translating into consistent billings patterns, supporting the near- to medium-term growth algorithm implied by the year-over-year EPS and EBIT forecasts. Stable pricing, disciplined discounting, and targeted investments in sales capacity tend to reinforce the subscriptions growth engine by elevating win rates without undermining unit economics.

Key stock-price drivers this quarter

The primary stock-price catalyst is the degree to which reported revenue, adjusted EPS, and EBIT align with or exceed the current-quarter forecasts of 216.92 million, $0.10, and 29.02 million, respectively. Because last quarter delivered clear beats across revenue, EBIT, and EPS, investors may anchor to a beat-and-raise pattern, which raises the bar for sentiment even if the official consensus looks achievable. Any deviation—whether due to deal slippage or lower-than-expected bookings—could weigh on the stock given the sensitivity to quarterly execution and the higher expectations after recent outperformance. Margins will be equally important for price discovery. With last quarter’s gross margin at 66.41% and net margin at 1.33%, investors will parse commentary for signals around cost discipline, sales efficiency, and support costs tied to onboarding new customers. Upside to EBIT relative to revenue could come from mix favoring high-margin subscriptions and measured operating expense growth, while downside could come from heavier investments or a higher services mix. Sequential dynamics also matter. Last quarter’s revenue was 219.07 million versus a current-quarter revenue forecast of 216.92 million, implying a sequential decline that may reflect normal seasonality. If management frames the sequential pattern as typical and points to solid year-over-year growth of 8.15%, sentiment could remain constructive around the annual trajectory, particularly if billings and remaining performance obligations are healthy. Conversely, an absence of detail on deal timing or a shortfall versus the EPS forecast could amplify bearish narratives around near-term growth durability.

Analyst Opinions

Bearish opinions currently dominate the collected views for Sprinklr, Inc., with the ratio of bearish to bullish standing at 100% to 0% among the ratings captured in the period. On February 23, 2026, Barclays analyst Raimo Lenschow reiterated a Sell rating and set a $6.00 price target, emphasizing caution around near-term growth and profitability calibration. On November 17, 2025, Barclays maintained a Sell with a $7.00 target, underscoring concerns that execution would need to be strong to justify higher valuation multiples in the face of moderating growth. This bearish stance frames expectations for March 11, 2026. Bears are likely to focus on the sequential revenue step-down from 219.07 million last quarter to a 216.92 million forecast this quarter, arguing it could reflect deal timing and a need for robust late-quarter bookings to sustain momentum. With last quarter’s gross margin at 66.41% and net margin at 1.33%, they will also gauge whether profitability can hold or improve without compromising growth investments, particularly given that GAAP net profit declined sequentially by 76.98% even as adjusted metrics were strong. At the same time, the bear case must contend with solid year-over-year signals embedded in the current-quarter forecasts: revenue up 8.15%, adjusted EPS up 34.81%, and EBIT up 60.53%. The debate centers on whether these growth and profitability vectors are sustainable across multiple quarters without elevated execution risk. If management delivers clear evidence of steady subscription expansion, stable gross margin, and disciplined operating expenses, it could challenge the prevailing bearish narrative, but until then the balance of recent institutional opinions leans cautious heading into the print.