Sprinklr Inc

Sprinklr reported first-quarter revenues of $219.5 million, up 6.8% year on year and exceeding analysts' expectations by 1.7%. Despite the top-line beat, the company's EPS guidance for the next quarter missed analysts' expectations significantly, while full-year revenue guidance met expectations. The stock has risen 3.8% since the report and currently trades at $5.83. Among the 18 sales and marketing software stocks tracked, the group overall beat revenue estimates by 2% and saw share prices rise an average of 39.2% since their latest earnings results.

Sprinklr's stock has fallen 19.5% over the past six months to $5.74, underperforming the S&P 500's 9.4% gain, and analysts recommend avoiding the shares. Billings reached $212.5 million in Q1, but year-on-year growth averaged just 5.3% over the last four quarters, signaling soft demand and competitive pressures. Revenue growth is expected to stall over the next 12 months, a sharp deceleration from the 16.6% annualized pace of the past five years. While GAAP operating margin improved by 4 percentage points over two years to 6%, the stock trades at 1.5 times forward price-to-sales, offering limited upside relative to downside risk.

StockStory identifies Palantir Technologies as a cash-heavy stock with impressive fundamentals, citing average billings growth of 67.6% over the last year and a robust free cash flow margin of 54.1%. The company holds a net cash position of $7.77 billion, representing 2.5% of its market cap. In contrast, Sprinklr and News Corp are flagged as facing challenges. Sprinklr has a net cash position of $399 million, or 31.7% of its market cap, but its average billings growth was only 5.3% over the last year and projected sales are flat. News Corp holds a net cash position of $96 million, just 0.6% of its market cap, with flat sales over the last five years and a poor free cash flow margin of 7.1%.

Shares of Paycom, Adobe, and Sprinklr each fell 4.1% after the Federal Reserve held its benchmark rate at 3.5%–3.75% and released a dot plot that removed expectations of a 2026 rate cut, instead introducing the possibility of a hike. The median year-end rate estimate rose to 3.8%, and the 2-year Treasury yield climbed 11 basis points to 4.161%, reducing the present value of future cash flows for software companies that are priced on earnings years into the future. Paycom, trading at $123.80 per share, is down 18.8% year-to-date and sits 48.8% below its 52-week high of $241.73 from June 2025.