CXM

Interested in Sprinklr, Inc.? Here are five stocks we like better. Sprinklr’s Q2 fiscal 2027 revenue rose 1% to $213.7 million, with subscription revenue up 3% to $194.8 million. However, professional services revenue fell short and produced a negative 22% non-GAAP gross margin, prompting management to focus on improving execution and profitability. Customer trends showed improvement, including a 102% subscription net dollar expansion rate, 11% growth in total remaining performance obligations to $1.03 billion, and a 30% increase in completed sales transactions. Sprinklr also reported more than 200 AI engagements and 40% growth in AI-native SKU ARR. The company raised its fiscal 2027 subscription revenue outlook to $782.5 million–$784.5 million while maintaining total revenue guidance of $866.5 million–$868.5 million. Sprinklr ended the quarter with $453 million in cash, no debt, and had completed a $125 million accelerated share repurchase. Sprinklr: Has the smoke cleared to buy back in? Sprinklr (NYSE:CXM) reported second-quarter fiscal 2027 revenue of $213.7 million, up 1% from a year earlier, as subscription revenue growth offset weaker professional services results. The company said it is continuing a broader transformation intended to improve customer retention, operating execution and long-term growth, while addressing service-delivery profitability issues. Subscription revenue increased 3% year over year to $194.8 million in the quarter. Non-GAAP operating income was $31.3 million, representing a 15% operating margin, while non-GAAP net income was $0.11 per diluted share. Sprinklr generated $13.1 million in free cash flow during the quarter and $79 million during the first half of the fiscal year. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? 3 customer engagement stocks you need to watch Professional services revenue totaled $18.9 million, lower than management anticipated because of softness in managed services. The business also faced partner-cost overruns and execution challenges in one region, according to Chief Financial Officer Anthony Coletta. Professional services carried a negative 22% non-GAAP gross margin in the second quarter, compared with a 74% non-GAAP subscription gross margin and a 66% total non-GAAP gross margin. President and CEO Rory Read said the services performance did not reflect weakening demand for large customer deployments. He pointed to a recently completed major implementation and continued large-deal activity, including a five-year agreement valued at more than $20 million with a global sports betting and gaming company. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings Sprinklr Gets Targets Raised By Analysts, Here's Why Read said he will oversee the services organization on an interim basis as Sprinklr works to improve partner utilization, implementation economics, AI use in service delivery and managed-services attachment rates. The company plans to bring in new services leaders and is working toward making services a margin-neutral business “in the near term,” Coletta said. “Services is an enabler” of subscription growth, Read said during the question-and-answer session. He said Sprinklr intends to use internal services staff on critical projects while relying on partners for additional reach, noting that the company sees a higher win rate when customers have established partner relationships. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Sprinklr reported a subscription revenue-based net dollar expansion rate of 102% for the quarter. The rate for customers with more than $1 million in annual recurring revenue was 112%, remaining above 110% for a fifth consecutive quarter. Total remaining performance obligations, or RPO, reached $1.03 billion at the end of the quarter, up 11% from the prior-year period. Current RPO was $614 million, up 3%. Coletta said total RPO grew faster than current RPO because several large renewals and expansions included contract terms extending up to five years. Average contract duration increased by more than two months for the second consecutive quarter, he said. Read said renewal rates improved and completed sales transactions rose 30% year over year. He also cited four deals with more than $1 million in annual recurring revenue closed during the quarter. Management characterized these trends as evidence that its customer-focused “Bear Hug” strategy is improving customer engagement and confidence in the company. The company also expanded its leadership team, appointing Thomas Addis as chief revenue officer and adding Jordi Ribas, Microsoft’s president of Search and AI, to its board of directors. Management said Sprinklr has more than 200 AI engagements underway across its customer base. Annual recurring revenue from AI-native stock-keeping units rose 40% year over year, with particular growth in agentic AI and contact-center intelligence offerings. Read said customer AI projects have evolved from proof-of-concept work toward operational implementations involving workflows, application programming interfaces and contextual data. He said Sprinklr has more than 300 AI engineers and has deployed forward-deployed engineers across more than 70% of its customer AI engagements. In addition to the sports betting and gaming agreement, Sprinklr cited a $4 million total contract value expansion with a financial software and services company. The customer expanded from a departmental deployment to an enterprise-wide relationship spanning five brands and eight business units, consolidating three vendors and six contracts onto Sprinklr’s platform. For the third quarter, Sprinklr forecast total revenue of $215 million to $216 million and subscription revenue of $196 million to $197 million, implying 3% year-over-year subscription growth at the midpoint. The outlook assumes $19 million in professional services revenue, down 34% year over year, and a negative 15% professional services gross margin. The company expects third-quarter non-GAAP operating income of $33.5 million to $34.5 million and non-GAAP earnings of approximately $0.11 per diluted share. For fiscal 2027, Sprinklr raised its subscription revenue outlook to $782.5 million to $784.5 million, representing 4% growth at the midpoint. It maintained total revenue guidance of $866.5 million to $868.5 million, or 1% growth at the midpoint, while lowering its assumed full-year professional services revenue to $84 million. Sprinklr expects full-year non-GAAP operating income of $139 million to $141 million, for a 16% non-GAAP operating margin, and non-GAAP earnings of approximately $0.47 per diluted share. It also expects about $135 million in free cash flow, equating to a roughly 16% free-cash-flow margin. The company ended the quarter with $453 million in cash equivalents and marketable securities and no debt. It completed a $125 million accelerated share repurchase, buying approximately 22 million shares, and had $75 million remaining under its authorized repurchase plan as of Aug. 28. Sprinklr, Inc (NYSE: CXM) is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale. Sprinklr's platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sprinklr Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Sprinklr (CXM) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this customer experience software developer would post earnings of $0.1 per share when it actually produced earnings of $0.11, delivering a surprise of +10%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sprinklr, which belongs to the Zacks Technology Services industry, posted revenues of $213.74 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $212.04 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sprinklr shares have lost about 2.3% since the beginning of the year versus the S&P 500's gain of 11.5%. While Sprinklr has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sprinklr was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $216.35 million in revenues for the coming quarter and $0.49 on $868.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Acuity (AYI), another stock in the same industry, has yet to report results for the quarter ended August 2026. The results are expected to be released on October 1. This lighting maker is expected to post quarterly earnings of $5.58 per share in its upcoming report, which represents a year-over-year change of +7.3%. The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. Acuity's revenues are expected to be $1.25 billion, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report Acuity, Inc. (AYI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Customer experience management platform Sprinklr (NYSE:CXM) met Wall Street’s revenue expectations in Q2 CY2026, but sales were flat year on year at $213.7 million. The company expects next quarter’s revenue to be around $215.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.11 per share was in line with analysts’ consensus estimates. Is now the time to buy Sprinklr? Find out in our full research report. Revenue: $213.7 million vs analyst estimates of $214.5 million (flat year on year, in line) Adjusted EPS: $0.11 vs analyst estimates of $0.10 (in line) Adjusted Operating Income: $31.3 million vs analyst estimates of $29.91 million (14.6% margin, 4.6% beat) The company reconfirmed its revenue guidance for the full year of $867.5 million at the midpoint Management lowered its full-year Adjusted EPS guidance to $0.47 at the midpoint, a 3.1% decrease Operating Margin: 4.7%, down from 7.7% in the same quarter last year Free Cash Flow Margin: 6.1%, down from 30% in the previous quarter Market Capitalization: $1.78 billion With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE:CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels. A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Sprinklr grew its sales at a 15.2% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded. Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. Sprinklr’s recent performance shows its demand has slowed as its annualized revenue growth of 6.2% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, Sprinklr’s $213.7 million of revenue was flat year on year and in line with Wall Street’s estimates. Company management is currently guiding for a 1.6% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and indicates its products and services will see some demand headwinds. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Sprinklr’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its incremental sales and marketing investments outpaced its revenue. The company’s inefficiency indicates it operates in a highly competitive environment where there is little differentiation between Sprinklr’s products and its peers. We enjoyed seeing Sprinklr beat analysts’ adjusted operating income expectations this quarter. On the other hand, its full-year EPS guidance missed and its EPS guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2.2% to $7.43 immediately after reporting. Sprinklr’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

This article first appeared on GuruFocus. Total Revenue: $213.7 million, up 1% year-over-year. Subscription Revenue: $194.8 million, up 3% year-over-year. Professional Services Revenue: $18.9 million, lower than anticipated due to softness in managed services. Non-GAAP Operating Income: $31.3 million, representing a 15% non-GAAP operating margin. Non-GAAP Net Income: $0.11 per diluted share. Free Cash Flow: $13.1 million in Q2; $79 million for the first half of fiscal year 2027. Non-GAAP Subscription Gross Margin: 74%. Services Gross Margin: Negative 22%. Total Non-GAAP Gross Margin: 66%. Net Dollar Expansion Rate: 102% overall; 112% for the $1 million cohort. Total RPO: $1.03 billion, up 11% year-over-year. Current RPO: $614 million, up 3% year-over-year. Cash Position: $453 million in cash, cash equivalents, and marketable securities, with no debt. Q3 FY '27 Revenue Guidance: $250 million to $260 million. Q3 FY '27 Subscription Revenue Guidance: $186 million to $197 million. Full Year FY '27 Subscription Revenue Guidance: Raised to $782.5 million to $784.5 million. Full Year FY '27 Total Revenue Guidance: $866.5 million to $868.5 million. Full Year FY '27 Non-GAAP Operating Income Guidance: $139 million to $141 million. Full Year FY '27 Free Cash Flow Guidance: Approximately $135 million, representing a 16% margin. Warning! GuruFocus has detected 7 Warning Sign with CXM. Is CXM fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sprinklr Inc (NYSE:CXM) delivered solid Q2 FY2027 results with total revenue of $213.7 million and subscription revenue growth of 3% year-over-year, alongside a 15% non-GAAP operating margin. The company saw significant momentum in key metrics, including NAR growth of over 50% year-over-year, a 30% increase in completed sales transactions, and four $1 million-plus ARR deals closed during the quarter. Sprinklr Inc (NYSE:CXM) was recognized as a leader in the 2026 Gartner Magic Quadrant for Social Media Management and Listening, validating its strategic vision and innovation leadership. The company's AI-native platform is gaining traction with over 200 AI engagements underway, and ARR for AI-native SKUs grew 40% year-over-year, positioning Sprinklr Inc (NYSE:CXM) for future growth. Sprinklr Inc (NYSE:CXM) reported strong balance sheet and cash flow, with $453 million in cash, no debt, and $79 million in free cash flow generated in the first half of fiscal year 2027. Total RPO reached $1.03 billion, up 11% year-over-year, marking the second consecutive quarter of double-digit growth and providing increased visibility into future revenue. Sprinklr Inc (NYSE:CXM) experienced a significant decline in professional services revenue, which was lower than anticipated due to softness in managed services and execution challenges, leading to a negative 22% services gross margin. The company's total revenue growth was only 1% year-over-year, with subscription revenue growth of just 3%, indicating a slow pace of expansion. Sprinklr Inc (NYSE:CXM) faces ongoing headwinds from higher data and hosting costs related to AI capabilities, which are pressuring margins and profitability. The company's Q3 FY2027 revenue guidance is slightly down year-over-year due to a significant reduction in professional services revenue, reflecting a structural shift that may impact near-term growth. Sprinklr Inc (NYSE:CXM) lowered its full-year free cash flow margin outlook to approximately 16% due to lower services billings and higher cash outflows for new hosting environments. The company is still in the transition phase of its transformation, with management acknowledging that more work is needed to achieve durable long-term growth and enter the acceleration phase in fiscal year 2028. Q: What is the evidence that the professional services underperformance is an execution issue rather than a sign of weakening large-deal demand?A: Rory Read (President and CEO) clarified that the issue is the opposite of a demand problem. The company recently completed its largest implementation ever, which was successful, and continues to win large deals, including a well over $20 million TCV agreement. The transgression was being caught with too much partner expense in the short term during the transition from that massive project. Read stated he has taken direct oversight of the services organization and has clear line of sight to clean up the mix between partners and internal resources over the next few quarters, emphasizing this is a tactical execution issue, not a demand indicator. Q: How should investors interpret the 30% year-over-year increase in completed sales transactions when revenue is not growing at the same rate?A: Rory Read (President and CEO) explained that the metric is anecdotal evidence of improving customer activity and engagement. He noted that while the company backed down new logo acquisition to about 20% of volume upon his arrival, they are now starting to increase that activity, aiming for the 30s in FY '28. Read emphasized that subscription growth must be built over multiple quarters, and while the company is three quarters into improved execution, they are still living with heightened churn from the first half of last year. The key is to run five consecutive good quarters to set the trajectory for next year. Q: Can you elaborate on the trade-off between using external partners versus the internal organization for professional services, and how you plan to allocate resources?A: Rory Read (President and CEO) stated that services are an enabler for growing subscription revenue, not a growth driver itself. The strategy is to leverage partners for reach, noting that the "troika" of Sprinklr, the partner, and the customer yields a 15-point higher win rate. However, the internal services team brings deep expertise and will be focused on the most critical projects. Read emphasized he does not need to grow services faster than subscription revenue and will use partners to scale while keeping internal experts on high-value implementations. Q: What is driving the sustainability of the net dollar expansion rate above 110% for the $1 million-plus customer cohort, and how durable is this trend?A: Anthony Coletta (CFO) confirmed the trend is solid and steady, driven by more renewals and NAR growth. Rory Read (President and CEO) added that this reflects the success of the "bear hug" strategy, where addressing historical issues has improved customer sentiment and expansion rates. He noted that the sub-$50,000 cohort is the last space to tackle with this strategy, and the company expects the metric to firm up and improve over time as leading indicators like total RPO point in that direction. Q: How are the AI engagements evolving compared to earlier this year, and what is the path from POCs to actual booked ACV?A: Rory Read (President and CEO) explained that three or four quarters ago, AI engagements were mostly POCs and concepts. Now, with over 200 active engagements and 300 forward-deployed AI engineers, the focus has shifted to practical execution, defining workflows, and linking contextual data to unlock agentic power. These implementations take two to three months to execute well. Read emphasized that the learnings from these engagements are being refined to demonstrate real returns, deflection rates, and cost savings, positioning Sprinklr to win in the agentic space rather than becoming a mere "pipe." Q: How should we think about the Q4 subscription revenue deceleration implied by the full-year guidance, and what metrics support the move into the acceleration phase in FY '28?A: Rory Read (President and CEO) stated that the key is executing well in Q3 and Q4. The company has delivered three predictable, good quarters on renewals, NAR, and expansions, which is building the foundation. However, it is only "halftime," and they must clean up the accelerated churn from the first half of last year. How they execute in the next two quarters will set the trajectory for next year, and they will provide updates at the end of Q3 to guide expectations for FY '28. Q: What is the status of the Middle East business, and did the deals that slipped last quarter close?A: Rory Read (President and CEO) praised the "gritty, determined" Middle East team for executing well in a tough environment. The deals that slipped from Q1 largely closed in Q2, and the team has a pipeline for a potentially interesting uptick. However, the macro situation remains choppy and fluid, so the company is not counting on breakout numbers but is relying on the team's demonstrated grit to keep delivering. Q: What are the plans for customers migrated to the Irish data center due to the Middle East conflict, and how is this impacting gross margins?A: Rory Read (President and CEO) explained that the company is building more capacity on the COGS side for sovereign data access and geofencing concepts in the Middle East and Asia to meet strategic demand. They are now starting to move some customers back to the Middle East region. These investments in new hosting environments are contributing to higher cash outflows and impacting near-term margins, but they are necessary to position the company for future opportunities in the pipeline. Q: What is the outlook for profitability, and where are the points of leverage to drive operating margins higher in FY '28 and beyond?A: Rory Read (President and CEO) stated that the company is paying down technical debt in the current transition phase, with most of that work expected to be complete this year. This should position the company to be more efficient. If they execute well in the next two quarters, they can move into the acceleration phase and potentially stretch profitability in the next year or two. However, Read emphasized that growth is the key priority for the company, and decisions over the next several quarters will be made to drive long-term durable growth. Q: Are you seeing traction in specific end markets, and how is the strategy to proliferate AI offerings across the broader customer base?A: Rory Read (President and CEO) noted that traction is being seen across all the enterprise spaces they play in, including banking and retail. The strategy involves hardening the CCaaS space and accelerating the innovation engine. For AI offerings, the company is seeing engagement across iconic brands in both CCaaS and core social spaces. Read emphasized that customers are past the "flashy" AI phase For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Sprinklr (NYSE:CMX) shares fell 2.4% to $7.42 in premarket trading after the company reported fiscal second-quarter 2027 results, including revenue below analyst expectations. Total revenue for the quarter was $213.7 million, compared with an analyst consensus estimate of approximately $215.6 million. The reported figure was also below the company’s previous guidance range, according to the supplied information. Earnings per share also came in below expectations, although the supplied information does not provide the reported EPS figure or the corresponding analyst estimate. Sprinklr’s total revenue increased 1% from the corresponding period a year earlier, while subscription revenue grew 3%. The results followed the company’s previous quarter, when revenue of $219.5 million exceeded forecasts and earnings per share of $0.11 came in above the $0.10 consensus estimate. The sequential comparison reflects results from different reporting periods and does not by itself establish a longer-term trend in the company’s financial performance. The supplied information indicates that investors have been monitoring Sprinklr’s guidance for the second half of fiscal 2027 as they assess the company’s growth outlook. The current figures alone do not establish whether the slower growth rate reflects temporary business conditions or a longer-term change in demand for the company’s products. Any company guidance for future periods represents management’s expectations and remains subject to changes in business and market conditions. Sprinklr’s decline came as broader U.S. equity markets also traded modestly lower in premarket trading. The Nasdaq was down 0.4%, while the S&P 500 declined 0.1%, according to the supplied market data. Other companies operating in customer-experience and enterprise software markets, including Sprout Social and Braze, are also being assessed by investors in relation to artificial intelligence adoption and enterprise technology spending. However, the supplied information does not establish that Sprinklr’s results affected the share prices or outlook of those companies. At the premarket price of $7.42, Sprinklr remained within its supplied 52-week trading range of $4.71 to $8.49. The 2.4% decline followed the release of the company’s quarterly results, including revenue below consensus expectations. However, the extent to which individual elements of the report or broader market conditions contributed to the share-price move cannot be established from the supplied information. Sprinklr stock price

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management characterizes the current period as the midpoint of a multi-quarter transformation, moving from a 'technical debt' cleanup phase toward a projected 'acceleration phase' in fiscal year 2028. Performance was driven by a 'Bear Hug' strategy focused on enterprise retention, resulting in renewal rates improving and completed sales transactions increasing 30% year-over-year. The company is seeing a strategic shift among large enterprises away from point solutions toward unified AI-native platforms to reduce complexity and lower costs. Professional services underperformed due to partner cost overruns and execution challenges in one specific region following the completion of a massive implementation project. CEO Rory Read has assumed interim leadership of the services organization to accelerate decision-making and improve partner utilization economics. Strategic investments in AI talent and hosting environments are being prioritized to support over 200 active Agentic AI customer engagements. The company is transitioning its innovation cycle from quarterly releases to a weekly or bi-weekly cadence via 'Project Blitz' to maintain leadership in AI-powered customer experience. Guidance for the remainder of the year assumes a conservative outlook for professional services while expecting subscription revenue growth to resume sequential increases in Q3. Management believes that firming leading indicators and bolstered contracting demand position fiscal year 2027 as the inflection point in the company's overall trajectory. The services organization is targeted to become margin-neutral in the near term through improved partner mix and increased managed service attach rates. Future profitability is expected to benefit from the completion of 'technical debt' payments by the end of the current fiscal year, allowing for more efficient scaling. Strategic capacity is being built in the Middle East and Asia to address sovereign data access and regulatory requirements for future regional demand. Professional services revenue is expected to decline 34% year-over-year in Q3, reflecting a structural shift toward AI-driven efficiency and the completion of large legacy projects. Gross margins are experiencing pressure from higher data and hosting costs associated with the 40% year-over-year growth in AI-native SKU adoption. The company completed a $125 million accelerated share repurchase program, leaving $75 million remaining in the current authorization. Geopolitical instability in the Middle East remains a recognized headwind, though management noted that deals previously delayed in the region have begun to close. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that services softness is a tactical execution issue related to partner expense management rather than a signal of declining large-deal demand. The CEO noted that the company is currently tracking more large deals in the pipeline than at any other point during his tenure. Sprinklr sees a 15-point higher win rate when engaging in a 'troika' relationship involving the company, a partner, and the customer. The company intends to leverage partners for reach while keeping internal experts focused on the most critical, high-complexity implementations. Management stated that AI engagements have moved beyond 'flashy' proofs-of-concept to real-world Agentic workflows that require deep data integration. Current projects are focused on measurable outcomes like deflection rates and cost savings, particularly in CCaaS and customer insights. After intentionally backing down new logo acquisition to 20% of volume to focus on the core base, management plans to drive this toward the 30% range next year. The 'new logo engine' is being restarted now to account for the typical 6- to 9-month enterprise sales cycle.

Q2 Total Revenue of $213.7 million, up 1% year-over-year Q2 Subscription Revenue of $194.8 million, up 3% year-over-year Q2 net cash provided by operating activities of $18.2 million, and free cash flow of $13.1 million RPO of $1.03 billion, up 11%, and cRPO up 3% year-over-year NEW YORK, September 02, 2026--(BUSINESS WIRE)--Sprinklr (NYSE: CXM), the unified customer experience management (Unified-CXM) platform for modern enterprises, today reported financial results for its second fiscal quarter ended July 31, 2026. "We delivered solid second quarter results and continued to strengthen the fundamentals of the business," said Rory Read, President and CEO of Sprinklr. Read continued, "We believe that the pace of our AI innovation, combined with new ARR growth, increasing enterprise adoption, and contracted demand underpinned by total RPO growth, demonstrate that we are making headway on our transformation and positioning Sprinklr for durable growth." Second Quarter Fiscal 2027 Financial Highlights Revenue: Total revenue for the second quarter was $213.7 million, up from $212.0 million one year ago, up 1% year-over-year. Subscription revenue for the second quarter was $194.8 million, up from $188.5 million one year ago, an increase of 3% year-over-year. Operating Income and Margin: Second quarter GAAP operating income was $10.0 million, compared to $16.3 million one year ago. Non-GAAP operating income was $31.3 million, compared to $38.2 million one year ago. Second quarter GAAP operating margin was 5%, compared to 8% one year ago. Non-GAAP operating margin was 15%, compared to 18% one year ago. Net Income Per Share: Second quarter GAAP net income per share, diluted was $0.03, compared to $0.05 one year ago. Non-GAAP net income per share, diluted for the second quarter was $0.11, compared to $0.13 one year ago. Cash, Cash Equivalents, and Marketable Securities: Total cash, cash equivalents, and marketable securities as of July 31, 2026 were $452.9 million. Free cash flow, non-GAAP operating income, non-GAAP operating margin, and non-GAAP net income per share are non-GAAP financial measures defined under "Non-GAAP Financial Measures," and are reconciled to their closest comparable GAAP measure in the "Reconciliation of Non-GAAP Financial Measures" section below. Financial Outlook Sprinklr is providing the following guidance for the third fiscal quarter ending October 31, 2026: Subscription revenue between $196.0 million and $197.0 million. Total revenue between $215.0 million and $216.0 million. Non-GAAP operating income between $33.5 million and $34.5 million. Non-GAAP net income per share of approximately $0.11, assuming 239 million diluted weighted-average shares outstanding. Sprinklr is providing the following updated guidance for the full fiscal year ending January 31, 2027: Subscription revenue between $782.5 million and $784.5 million. Total revenue between $866.5 million and $868.5 million. Non-GAAP operating income between $139.0 million and $141.0 million. Non-GAAP net income per share of approximately $0.47, assuming 240 million diluted weighted-average shares outstanding. Non-GAAP Financial Measures In addition to our results determined in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"), we believe that the following non-GAAP financial measures are useful in evaluating our operating performance: Non-GAAP gross profit and non-GAAP gross margin; Non-GAAP operating income and non-GAAP operating margin; and Non-GAAP net income and non-GAAP net income per share. We define these non-GAAP financial measures as the respective U.S. GAAP measures, excluding, as applicable, stock-based compensation expense and related charges; amortization of stock-based compensation expense associated with capitalized internal-use software; amortization of acquired intangible assets; restructuring charges; costs associated with acquisitions; litigation, settlement, and related costs deemed unrelated to our core business operations; facility exit costs; and the estimated tax effect of these non-GAAP adjustments. We believe that it is useful to exclude these items in order to better understand the long-term performance of our core business and to facilitate comparison of our results to those of peer companies over multiple periods. In addition, we believe that free cash flow is also a useful non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a useful indicator of liquidity as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. We typically experience higher billings in the fourth quarter compared to other quarters and experience higher collections of accounts receivable in the first half of the year, which results in a decrease in accounts receivable in the first half of the year. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by U.S. GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our condensed consolidated financial statements presented in accordance with U.S. GAAP. Conference Call Information Sprinklr will host a conference call today, September 2, 2026, to discuss its second quarter fiscal 2027 financial results, as well as the third quarter and full year fiscal 2027 outlook, at 8:30 a.m. Eastern Time, 5:30 a.m. Pacific Time. Investors are invited to join the webcast by visiting: https://investors.sprinklr.com/. To access the call by phone, dial 877-459-3955 (domestic) or 201-689-8588 (international). The conference ID number is 13762253. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days. About Sprinklr, Inc. Sprinklr is the definitive, AI-native platform for Unified Customer Experience Management (Unified-CXM), empowering brands to deliver extraordinary experiences at scale — across every customer touchpoint. By combining human intelligence with the enhancements and insights of artificial intelligence, Sprinklr helps brands earn trust and loyalty through personalized, seamless, and efficient customer interactions. Sprinklr’s unified platform provides powerful solutions for every customer-facing team — spanning social media management, marketing, advertising, customer feedback, and omnichannel contact center management — enabling enterprises to unify data, break down silos, and act on real-time insights. Today, 1,600+ enterprises — including Microsoft, P&G, Samsung, and 59% of the Fortune 100 — rely on Sprinklr to help them deliver consistent, trusted customer experiences worldwide. Forward-Looking Statements This press release contains express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the third quarter and full year fiscal 2027 and our ability to execute on our business transformation and position Sprinklr for durable growth. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "will," "would," "should," "could," "can," "predict," "potential," "target," "explore," "continue," or the negative of these terms, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the statements, including: the risk that the potential benefits of the stock repurchase program are not realized; our historical growth may not be indicative of our future growth; our revenue growth rate has fluctuated in prior periods; our ability to achieve or maintain profitability; we derive the substantial majority of our revenue from subscriptions to our Unified-CXM platform; our ability to manage our growth and organizational change; the market for Unified-CXM solutions is rapidly evolving; our ability to attract new customers in a manner that is cost-effective and assures customer success; our ability to attract and retain customers to use our products; our ability to drive customer subscription renewals and expand our sales to existing customers; our ability to effectively develop platform enhancements, introduce new products, or keep pace with technological developments, including with respect to artificial intelligence; the market in which we participate is new and rapidly evolving and our ability to compete effectively; our business and growth depend in part on the success of our strategic relationships with third parties; our ability to develop and maintain successful relationships with partners who provide access to data that enhances our Unified-CXM platform’s artificial intelligence capabilities; the majority of our customer base consists of large enterprises, and we currently generate a significant portion of our revenue from a relatively small number of enterprises; our investments in research and development; our ability to expand our sales and marketing capabilities; our sales cycle with enterprise and international clients can be long and unpredictable; certain of our results of operations and financial metrics may be difficult to predict; our ability to maintain data privacy and data security; we rely on third-party cloud service providers; the sufficiency of our cash, cash equivalents, and marketable securities to meet our liquidity needs; our ability to comply with modified or new laws and regulations applying to our business; our ability to successfully enter into new markets and manage our international expansion; the attraction and retention of qualified employees and key personnel; our ability to effectively manage our growth and future expenses and maintain our corporate culture; our ability to maintain, protect, and enhance our intellectual property rights; unstable economic, political, and market conditions, including as a result of public health crises, fluctuations in inflation, interest, and foreign currency rates, the imposition of tariffs in the U.S. and abroad, the recent and any future U.S. government shutdown, or geopolitical actions, such as war and terrorism or the perception that such hostilities may be imminent; and our ability to successfully defend litigation brought against us. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are or will be discussed in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2026, filed with the Securities and Exchange Commission ("SEC") on June 4, 2026, under the caption "Risk Factors," and in other filings that we make from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprinklr at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprinklr assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law. Key Business Metrics RPO. RPO, or remaining performance obligations, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in future periods. cRPO. cRPO, or current RPO, represents contracted revenues that have not yet been recognized, and include deferred revenue and amounts that will be invoiced and recognized in the next 12 months. (1) During the first fiscal quarter of fiscal year 2027, the Company changed the presentation of its share repurchase activity within stockholders’ equity from accumulated deficit to additional paid‑in capital. Prior-period balances have been recast to conform to the current-period presentation. This change represents a reclassification within equity only and does not affect total stockholders’ equity, net income, or cash flows. (1) Includes stock-based compensation expense, net of amounts capitalized, as follows: (1) Employer payroll tax related to stock-based compensation for the periods ended July 31, 2026 and 2025 was immaterial as to the impact to gross profit.(2) Includes employer payroll tax related to stock-based compensation expense of $0.3 million and $0.1 million for the three months ended July 31, 2026 and 2025, respectively, and $0.8 million and $0.5 million of employer payroll tax related to stock-based compensation expense for the six months ended July 31, 2026 and 2025, respectively.(3) Relates to litigation, settlement, and related costs deemed unrelated to our core business operations.(4) Includes employer payroll tax related to restructuring expenses of nil for both the three and six months ended July 31, 2026 and nil and $0.7 million for the three and six months ended July 31, 2025, respectively. (1) Includes employer payroll tax related to stock-based compensation of $0.3 million and $0.1 million for the three months ended July 31, 2026 and 2025, respectively, and $0.8 million and $0.5 million for the six months ended July 31, 2026 and 2025, respectively.(2) Represents the Company’s current and deferred income tax expense commensurate with the non-GAAP measure of profitability using a non-GAAP tax rate of 26% for the three and six months ended July 31, 2026 and 2025. The Company uses an annual tax rate in its computation of the non-GAAP income tax provision and excludes the direct impact of stock-based compensation expense, employer tax costs related to stock-based compensation, intangible amortization expense, amortization of stock-based compensation expense associated with capitalized internal-use software, non-recurring litigation costs, restructuring costs, and settlement of prior year tax positions.(3) Relates to litigation, settlement, and related costs deemed unrelated to our core business operations.(4) Includes employer payroll tax related to restructuring expenses of nil for the three and six months ended July 31, 2026 and nil and $0.7 million for the three and six months ended July 31, 2025, respectively. View source version on businesswire.com: https://www.businesswire.com/news/home/20260902336713/en/ Contacts Investor Relations: [email protected] Media & Press: [email protected]

The upcoming report from Sprinklr (CXM) is expected to reveal quarterly earnings of $0.10 per share, indicating a decline of 23.1% compared to the year-ago period. Analysts forecast revenues of $214.51 million, representing an increase of 1.2% year over year. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. In light of this perspective, let's dive into the average estimates of certain Sprinklr metrics that are commonly tracked and forecasted by Wall Street analysts. The consensus estimate for 'Revenue- Subscription' stands at $193.99 million. The estimate points to a change of +2.9% from the year-ago quarter. The consensus among analysts is that 'Revenue- Professional services' will reach $20.52 million. The estimate indicates a year-over-year change of -12.9%. Analysts predict that the 'Gross Margin - Subscription' will reach 74.1%. Compared to the current estimate, the company reported 77.0% in the same quarter of the previous year. View all Key Company Metrics for Sprinklr here>>> Shares of Sprinklr have experienced a change of +28.1% in the past month compared to the +4.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), CXM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sprinklr, Inc. (CXM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research