Sprinklr (CXM) opened Q1 2027 with revenue of US$219.5 million and basic EPS of US$0.02, alongside net income of US$4.2 million. Its trailing twelve month revenue was US$871.2 million with EPS of US$0.12. Over the past year, the company’s quarterly revenue moved from US$205.5 million in Q1 2026 to US$219.5 million in Q1 2027, with basic EPS shifting from a loss of US$0.01 in Q1 2026 to a profit of US$0.02 in the latest quarter. This sets up a results season where margins and earnings quality are front and center for investors.

See our full analysis for Sprinklr.

With the headline figures on the table, the next step is to set these results against the prevailing narratives about Sprinklr's growth, profitability, and risk profile to see which stories hold up and which need a rethink.

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Margins Slide From 13.6% To 3.3%

• Trailing net profit margin is 3.3% compared with 13.6% a year earlier, while trailing twelve month net income is US$28.7 million on US$871.2 million of revenue.
• Consensus narrative points to AI features, more digital channels, and efficiency projects as long term margin drivers. However, the current margin level is much lower than last year, so investors are weighing those margin compression concerns against the long term story.
  • Projects such as Bear Hug aim to lift renewals and recurring revenue quality, but the recent trailing margin outcome shows that any efficiency gains have not offset cost pressures over the last 12 months.
  • Analysts expect revenue to grow around 8% a year with margins shrinking to 3.6% over time, which is close to the current 3.3% trailing margin and suggests limited margin cushion if costs stay elevated.

High P/E Versus Peers At 46.7x

• The stock trades on a trailing P/E of 46.7x compared with roughly 29x for the US software industry and peers, while earnings per share over the trailing twelve months sit at US$0.12 with the share price at US$5.38.
• Bears argue that a high P/E leaves little room for weaker profitability, and the step down in trailing margin from 13.6% to 3.3% aligns with that concern even though analysts still model revenue growth below the broader US market at 4.2% a year.
  • Slower forecast revenue growth than the broader US market together with a higher multiple than peers is the sort of mix critics highlight when they talk about valuation risk.
  • The recent quarterly pattern, where net income moved from US$12.6 million in Q2 2026 to US$4.2 million in Q1 2027, gives those cautious views a concrete profitability data point to focus on.

Investors who worry that a 46.7x P/E and thinner margins could cap upside may want to see how that case is built out in more detail in the 🐻 Sprinklr Bear Case

DCF Fair Value Sits Well Above Price

• The dataset’s DCF fair value of US$17.83 is much higher than the current share price of US$5.38, while trailing twelve month EPS of US$0.12 underpins that valuation gap.
• Bulls point to an earnings growth forecast of 34.5% a year as support for that DCF fair value, even though recent quarterly EPS has moved between US$0.01 and US$0.05 and trailing margins are currently 3.3%, so the optimistic view leans heavily on the growth forecasts rather than the latest margin trend.
  • The trailing twelve month EPS of US$0.12 and revenue of US$871.2 million provide the base that bullish models extend, even though trailing net income is US$28.7 million compared with higher levels a year ago.
  • Analysts’ forecasts for revenue growth of 4.2% a year, which is slower than the wider US market, sit alongside those higher earnings growth expectations and form a key tension in the bullish narrative.

If you want to see how optimistic investors justify a DCF fair value so far above US$5.38, it is worth reading the full bullish case in the 🐂 Sprinklr Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Sprinklr on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of risks and rewards feels finely balanced, it is worth checking the underlying numbers yourself and deciding how comfortable you are with the trade off, then taking a closer look at the 2 key rewards and 2 important warning signs

See What Else Is Out There

Sprinklr’s high 46.7x P/E, thinner 3.3% trailing net margin, and slower forecast revenue growth highlight a tight margin for error on valuation and profitability.

If you want stocks where the price tag lines up more comfortably with the fundamentals, now is a good time to scan the 45 high quality undervalued stocks for ideas that might better fit your risk tolerance.

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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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.