CXM

Image source: The Motley Fool. Wednesday, Sept. 2, 2026 at 8:30 a.m. ET Head of Investor Relations - Eric Scro President and CEO - Rory Read Chief Financial Officer - Anthony Coletta Operator: Greetings. Welcome to Sprinklr's Second Quarter Fiscal Year 2027 Call. [Operator Instructions] Please note, this conference is being recorded. I'll now turn the conference over to Eric Scro, Head of Investor Relations. Eric Scro: Thank you, Operator, and welcome, everyone, to Sprinklr's Second Quarter Fiscal Year 2027 Financial Results Call. Joining us today are Rory Read, Sprinklr's President and CEO, and Anthony Coletta, Sprinklr's Chief Financial Officer. We issued our earnings release a short time ago, filed the related Form 8-K with the SEC, and we've made them available on the Investor Relations section of our website, along with the supplementary investor presentation. Please note that on today's call, management will refer to certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with GAAP. You are directed to our press release and supplementary investor presentation for a reconciliation of such measures to GAAP. In addition, during today's call, we'll be making some forward-looking statements about the business and about the financial results of Sprinklr that involve many assumptions, risks, and uncertainties, including our guidance for the third fiscal quarter and full fiscal year of 2027, the impact of our corporate strategies, the benefits of our platform, and our market opportunity. Our actual results might differ materially from such forward-looking statements. Any forward-looking statements that we make on this call are based on our beliefs and assumptions as of today, and we disclaim any obligation to update them. For more details on the risks associated with these forward-looking statements, please refer to our filings with the SEC also posted on our website. With that, I'll now turn it over to Rory. Rory Read: Thank you, Eric, and hello, everyone. It's great to be with you today. In the second quarter, total revenue was $213.7 million, up 1% year-over-year, and subscription revenue grew 3% to $194.8 million. We delivered $31.3 million in non-GAAP operating income, representing a 15% non-GAAP operating margin. I want to thank our global teams, customers, and partners for their trust and ongoing support. We continue to strengthen our leadership during the quarter with the addition of Tom Addis as our Chief Revenue Officer. And just recently, we added Jordi Ribas to our Board of Directors. Tom brings a proven track record of driving growth, scaling customer-centric organizations, and building high-performance global sales teams. Jordi is a recognized product, engineering, and AI leader with decades of experience at Microsoft, where he serves as President of Search & AI. We're excited to welcome Tom and Jordi to Sprinklr, and we look forward to their many contributions. In the second quarter, we continued building a stronger, more customer-centric company. At the midpoint of the fiscal year, our transformation remains on track. We remain firmly in the transition and execution phase of this process, strengthening the foundation needed to drive durable long-term growth. The business continued to show signs of improvement during the quarter. And compared to the first half of last year, we are operating from a significantly stronger position across several key areas. Our bear-hugging mindset and commitment to innovation are resonating with our customers, driving deeper engagement and reinforcing confidence in our strategy. NAR grew more than 50% year-over-year, and our enterprise momentum remains solid with 4 $1 million-plus ARR deals closed during the quarter. Renewal rates improved, and completed sales transactions for the quarter increased 30% year-over-year. Together, these results reflect stronger execution, healthy demand, and the value customers are realizing from our AI-native platform. While we delivered solid results, we recognize that our professional service and support organization requires greater focus. Optimizing our partner ecosystem and enhancing profitability within the service business are important priorities as we continue our transformation. To accelerate these efforts, I will lead our services organization on an interim basis. We believe with this direct oversight, we'll enable faster decision-making, stronger execution, and more rapid implementation of the changes needed to improve performance over the coming quarters. Our efforts will focus on three key areas: First, we'll improve the utilization of partners and enhance the economics of customer implementations. Second, we will expand the use of our AI across our service delivery model to drive greater efficiency and scalability. And third, we'll increase managed service attach rates where our data consistently shows stronger platform adoption, greater customer value realization, and higher renewal rates for customers that leverage our managed services. We believe these actions will help create a stronger foundation for growth and customer success. With that, let me turn to another key driver of our long-term growth strategy, our technology and product innovation. Sprinklr's differentiation starts with our AI-native unified platform, which helps the world's most iconic brands transform customer intelligence into business outcomes at enterprise scale. This quarter, Gartner recognized Sprinklr as a leader in the 2026 Magic Quadrant for Social Media Management and Listening, positioning us at the highest for the ability to execute and furthest for the completeness of vision. We believe this recognition validates both our strategic vision and our continued innovation leadership. Underpinning this innovation is a highly scalable enterprise-grade platform that ingests over 180 billion customer conversations annually and delivers the performance and reliability that global enterprises depend on. As AI reshapes customer experience, enterprises are increasingly seeking solutions that combine trusted data, domain expertise, and intelligent automation to drive measurable business outcomes. With more than 200 AI engagements underway across our customer set, our Agentic AI capabilities are helping our customers improve productivity, enhance customer experiences, and accelerate results. We believe our unified platform, proprietary customer intelligence, and deep enterprise expertise position Sprinklr to be a leader in the next generation of AI-powered customer experience. Here are a few customer examples that demonstrate how we're delivering results and winning in the marketplace. Following the largest deal in Sprinklr's history in the first quarter, which included significant CCaaS and platform components, our first customer story highlights an expanded partnership with one of the world's largest sports betting and gaming companies. We recently signed a 5-year strategic agreement with this customer valued at well over $20 million. This partnership will extend our platform across more than 35 global brands, supporting 1,500 contact center agents and 2,500 users worldwide. The customer selected Sprinklr to simplify its technology landscape by consolidating multiple vendors into a single AI-native platform. By unifying CCaaS, social engagement, and insights, Sprinklr will help improve operational efficiency, strengthen governance, and enable greater customer understanding at scale across this global set of operations. Our second story is a $4 million TCV expansion with a leading financial software and services company. What began as a departmental deployment has evolved into an enterprise-wide partnership spanning 5 brands and 8 business units. To simplify its technology stack and improve customer experiences, this customer consolidated 3 vendors and 6 contracts into Sprinklr's AI-native platform. By unifying social listening, publishing, customer care, and customer insights, the company gained greater efficiency, deeper insights, and faster responses across the entire enterprise. These two wins highlight a trend we're seeing across large enterprises. Customers are increasingly moving away from disconnected point solutions towards enterprise platforms with deep AI capabilities that can reduce complexity, lower cost, and drive measurable business outcomes. We believe Sprinklr is uniquely positioned to capitalize on this trend. So in closing, at the midpoint of the fiscal year, we remain on track to build a stronger, more customer-centric company. We have now achieved 3 consecutive quarters of improved execution, which is driving NAR growth, higher renewal rates, and stronger customer sentiment. Our bear-hugging efforts and the innovation capabilities of our AI-native platform are resonating with customers and reinforcing that our strategy is working. While we're making progress, there is more work to do. Executing well in 3Q and 4Q and building upon the recent momentum is the key next step for us to enter the acceleration phase of our strategy in fiscal year '28. With that, I'll turn it over to Anthony for the financials. Anthony? Anthony Coletta: Thank you, Rory, and good morning, everyone. First, I want to recognize the commitment and passion for customer success of our teams across the company. I also want to extend a warm welcome to Tom Addis, who recently started as new Chief Revenue Officer and member of our leadership team. This quarter marks another key milestone in our transformation journey. We continue to execute against our road map and strengthen the business. While there is still work to do, our momentum is building, and we are moving steadily toward our goals. Now let me turn to our financial performance. In Q2, total revenue was $213.7 million, up 1% versus prior year with an increase in subscriptions being offset by services. Subscription revenue was $194.8 million, up 3% year-over-year. We saw a balanced performance across our key markets, underpinned by the continued growth of NAR and quality logos. Professional services revenue came in at $18.9 million. This was lower than anticipated due to some softness in managed services. Our subscription revenue-based net dollar expansion rate in the second quarter was 102%. Net dollar expansion rate for the $1 million cohort was 112% in Q2, which we view as a relevant measure of increased share of wallet. Net dollar expansion from this customer cohort stayed north of 110% for the fifth consecutive quarter. More relevant to how we are transforming the business is our Bear Hug focus that continues to yield dividends. We believe this will continue to solidify our baseline and contribution from the top-tier customer base over time. Renewal rates came in exactly as planned and keep showing improvement year-over-year. Furthermore, the average contract duration continues to increase. We like to see this trend as it can compound over time. At the end of Q2 FY '27, total RPO was $1.03 billion, once again above the $1 billion mark for the quarter, reflecting the quality of contracted demand and increasing visibility into the future. Total RPO was up 11% year-on-year, representing the second consecutive quarter of double-digit growth compared to the prior year period. In addition, current RPO was $614 million, up 3% year-over-year. Total RPO grew faster than CRPO, primarily driven by several large renewals and NAR expansions with contract terms extended up to 5 years. These longer duration agreements contributed to a more than 2 months increase in average NAR contract length for the second consecutive quarter. While this can create timing differences between RPO and CRPO growth from quarter-to-quarter, it does not change the underlying level of customer commitment. We consider RPO to be a leading indicator, and we typically pair it with other metrics to better appreciate underlying business momentum. As we post the best total RPO growth on record over the past 1.5 years, it is supporting near-term visibility. Turning to margins. Second quarter non-GAAP subscription gross margin was 74%, while services gross margin was negative 22%, resulting in a total non-GAAP gross margin of 66%. While we expected some pressure from services during the quarter, margins were further impacted by partner cost overruns and execution challenges in one region. In addition, the completion of several large implementation projects over the past year created an elevated baseline. There is no correlation to customer demand. And as Rory noted, we have identified key levers for remediation. We are bringing in some new leaders in the services organization and are working towards making this a margin-neutral line in the near term. As noted in previous calls, we are experiencing higher data and hosting costs in response to business opportunities, especially for our expanded AI capabilities. In particular, the ARR for AI-native SKUs was up 40% year-over-year, and we are seeing outsized growth with our Agentic and Contact Center intelligence. Turning to profitability for the quarter. Non-GAAP operating income was $31.3 million or a 15% margin, which drove non-GAAP net income of $0.11 per diluted share. We generated $13.1 million in free cash flow in Q2. For the first half of this fiscal year, we've now generated $79 million in free cash flow. The strong free cash flow was driven by cost discipline and robust cash collection, resulting in improved cash conversion. Our balance sheet remains strong with $453 million in cash, cash equivalents, and marketable securities and no debt. The $125 million accelerated share repurchase is now complete, and we have repurchased approximately 22 million shares under the program. By successfully executing this program over the past few months, we believe we optimized the value of capital deployed. As of August 28, we have $75 million remaining in our $200 million authorized repurchase plan to use at our discretion. Even after completing the buyback and the ViralMoment acquisition, we remain very well capitalized with no debt outstanding. Now I'd like to shift to our financial outlook. As Rory shared in his remarks, we are still in the second phase of our transformation and mindful of the current macro and geopolitical environment. Our expectations as of today regarding these dynamics are factored into the following figures. We remain confident in our strategy and are excited about the medium trajectory that is forming for Sprinklr. For Q3, we expect total revenue to be in the range of $215 million to $216 million, which is slightly down versus last year due to a significant reduction in professional services revenue. We had called out some normalized revenue mix due to completion of large services implementation last year. We expect subscription revenue to be in the range of $196 million to $197 million, representing 3% growth year-over-year at the midpoint. The Q3 guide implies $19 million in professional services revenue, which is down 34% year-over-year. We expect professional services gross margin to be negative 15% in Q3. And as noted above, we are actively working on making improvements in this area. We expect non-GAAP operating income to be in the range of $33.5 million to $34.5 million, resulting in non-GAAP net income per diluted share of approximately $0.11, assuming 239 million diluted weighted average shares outstanding. Our non-GAAP operating income is pressured by lower professional services revenue in Q3, but more importantly, it's a structural shift for the long term. It reflects strong adoption of our AI products, which is driving higher cloud and data costs as noted in prior quarters. We are also investing in future growth by expanding AI talent, particularly forward-deployed engineers in the field. We continue to make strategic investments to fuel the momentum across our AI product suite with the uptake of our Agentic capabilities. For the full year FY '27, we are flowing through the beat from Q2 and raising our subscription revenue guide to be in the range of $782.5 million to $784.5 million, representing 4% growth year-over-year at the midpoint. We estimate the sequential increase in quarterly subscription revenue to resume here in Q3 given higher renewal rates and pipeline conversion compared to prior year. We expect total revenue to still be in the range of $866.5 million to $868.5 million, representing 1% growth year-over-year at the midpoint. This total revenue guide now assumes professional services revenue of $84 million, reflecting a more conservative services outlook. We are reaffirming full year total revenue guidance because of sales traction and improving overall execution, offsetting the impact from services. For the full year FY '27, we estimate non-GAAP operating income to be in the range of $139 million to $141 million, driving a 16% non-GAAP operating margin. This equates to non-GAAP net income per diluted share of approximately $0.47, assuming 240 million diluted weighted average shares outstanding. We estimate non-GAAP operating income to increase in the fourth quarter as we expect some efficiency gains. In deriving the net income per share for modeling purposes, a total tax provision of approximately $41 million needs to be added to the non-GAAP profit before tax line. To get to non-GAAP profit before tax, start with the non-GAAP operating income ranges provided and add an estimated $15 million in other income for the full year with $3 million to be earned here in Q3. This other income line primarily consists of interest income. We estimate a tax provision of approximately $10 million in Q3. This equates to approximately a 26% effective tax rate on our non-GAAP profit before tax for both the quarter and the year. We now expect to generate a full year free cash flow margin of approximately 16%, representing about $135 million of free cash flow with roughly $10 million expected in Q3. This updated outlook reflects two factors that became clear during the quarter. First, we now anticipate lower services billings, which reduces near-term cash collections. Second, we expect higher cash outflows for investments we are making in new hosting environments. Importantly, our cash collection efficiency remains strong, and we continue to maintain a disciplined approach to capital allocation. In summary, Q2 was a stepping stone as we continue positioning the business for the next phase. We are seeing positive signs in the renewal rates and customer engagements. We have some headwinds for services, but we are taking action. This is distinct from our subscription growth outlook and from tangible progress of our core operating model. Our fundamentals remain solid with a healthy balance sheet and strong cash conversion. As we move through this transition, we are building momentum and continue to instill operational discipline as we execute our strategy. Our leading indicators are beginning to firm up and bolstering contracting demand, which we believe positions FY '27 at the inflection point in our overall trajectory. Our global customer base continues to embrace our unified CXM platform as the operating system for customer experience. Our AI-native platform combines unique data, context, and situational awareness across the enterprise, enabling customers to turn signals into actions in real time with our Agentic capabilities. And that's of paramount relevance in a modern enterprise. This differentiated approach combined with actionable context serves as the connective tissue across customer-facing functions, helping organizations drive stronger engagement, efficiency, and greater outcomes. As we look ahead, our customer obsession remains intact with continuous focus on the speed of innovation and quality execution for the long run. With that, we'll open the line for questions. Operator? Operator: [Operator Instructions] And the first question is from the line of Jackson Ader with KeyBanc. Jackson Ader: The first one, Rory, is for you on the professional services performance. What's the evidence that this is truly going to be -- is an execution issue or an execution fix and not some sort of indicator of activity or large deal demand? Rory Read: Yes. No, quite the opposite, Jackson. We came off of the largest implementation we had ever done, and it was very successful. And we continue to win large deals here in the second quarter. I referenced one, the well over $20 million TCV deal. I have very interesting large deals in the second half that are key, as I mentioned. Very important, our execution in 3Q and 4Q to make sure we maintain that momentum. But basically, the transgression was that we got caught with a bit too much partner expense in the short term. We knew this was coming, and we signaled this to everyone for some time that this was the transition quarter. I think we could have executed it more cleanly. I think that I've now been running it for about 6 weeks. I can see line of sight over the next couple of few quarters to clean it up properly. It's just about having the right mix between partners and internal. And then we have some of the larger deals that will come in the second half that build on top of it. So I want to leverage that experience. It's really just that transition period, and I think that's the key to execution. I'll give you updates as we go through the quarters, but that's my proof points. Jackson Ader: Okay. And then if I think about just the rest of the year and the fourth quarter, obviously, always being important for bookings and deal signings. How are you thinking about not just allocating your time now that professional services is under your, kind of, direct supervision, but just rightsizing the resource and the attention allocation of the company to make sure that still new deal signings are top priority as we head into, like, the seasonal strength. Rory Read: Jackson, you're spot on, a 100%. The key to this transformation, we've worked the last 21 months to position ourselves. We're at the halfway point of this year. We are where we wanted to be minus the service transgression, but that's a tactical execution issue. The key to our turn in getting to the acceleration phase is running 5 good quarters together. We built 3 in a row now. We need to execute 3Q and 4Q. That means closing deals, managing Bear Hug, making sure the renewal rates stay where they've been. All indicators have become much more predictable. We believe that we're in a good position. If this was a World Cup soccer game, we're at half time. And half time, we're up 1-0. We are in the game for this year. Now we have to execute 3Q and 4Q, and we have to stay aggressive and win those deals. Fixing services takes a couple of few quarters. I don't see anything significant about that. It's really just that transition from which was a huge implementation, well over 200 people working on it and then capturing that momentum. I'm going to work on that, sure. But my primary focus is on every major customer, key renewals, key large deals, making sure we negotiate our data costs properly, each of those items. And I'm excited about adding Tom Addis on the sales side. This guy is a pro. I mean, he understands how to build long-term success. He knows how to build the culture. He's deep into the pipeline. That's the kind of discipline and focus. I'm hopeful that the Middle East will settle down as that's a key part of our business, and we want to continue. And that group has shown real grit and determination. They have great opportunities. The deals are there. Now we have to execute. I think that's the key. And you're spot on. My primary focus is keep building the turn. I can fix service and support, and that's important, and we will. But the key, key is the next 2 quarters and getting that momentum 5 quarters in a row. Operator: The next question is from the line of Arjun Bhatia with William Blair. Arjun Bhatia: Rory, for you, can you just maybe let us know how you think about the trade-off in professional services between relying on external partners and your internal organization to better serve your customers? Are you sort of leaning more one way or another now that you're, kind of, working through some of the challenges in that organization in terms of how you should allocate resources between those two? Rory Read: Yes, Arjun, I think it's really straightforward. The key to this business is to grow subscription revenue. That's the key, becoming valuable on all phases of a unified customer experience platform. Services is an enabler of that. Two things. We want to use the strong expertise in our internal service and support organization to augment that. They did a magnificent job on the largest deal we ever won and the implementation, really nice work. What we want to do is we want to make sure when we make this transition, we don't really need to grow that faster than subscription revenue. We'd like to leverage partners to give us more reach. We see a higher win rate when we have customers with a strong trusted relationship with a partner. That troika, the 3-way of Sprinklr, the partner, and the customer wins about 15 points higher win rate. So I like that. And I've always been a channel guy in my entire career, and they're definitely a powerful asset. We'll be naming a new leader in the partner space. They'll be reporting to Tom Addis. He's a pro in this space. I think though, our services team brings deep, deep expertise. And I want to put them on the most critical projects, and I want to bring their skills to bear to truly bring what's next to customers. This is a software company, a unified customer experience platform company. Services are needed to enable that and to accelerate that. That's how I view it. And partners have to play a key role in this. I don't need to grow services faster. I told everyone that we would have had that huge deal and we would transition. I gave you the signals. Could we have done it a bit smoother? For sure. I'll straighten that out. But the key for us is to make sure that it's helping us win more of these unified customer experience deals. Arjun Bhatia: Okay, perfect. And then just I'd love to hear how you're thinking about profitability here. I know we had a little bit of a dip in the first half of the year with gross margins and AI investments, which I think makes a lot of sense. But when you look at other items in OpEx, what kind of points of leverage do you see here in the business to drive operating margins higher in fiscal '27 or '28 and beyond? Rory Read: Yes, '28. I think what we've always told everyone is that in the second phase of execution and transition, we have to pay down the technical debt. I'm very pleased with the progress we're making, the work around tokenization, AI, and our internal execution is paying real dividends. I really like where that's going. We'll be done with most of that technical deficit this year. That should position us to be more efficient. And you combine that, if we execute well the next 2 quarters and we run 5 together, we should move into the acceleration phase. And that then will enable us to really focus on that growth. So we're making the investments now to clean up the debt, to accelerate innovation with our Project Blitz and Blaze, which are over 200 customer engagements in AI. I think we're making sure we're prudent on the spend right now. As we move into that acceleration phase and we have that debt behind us, we can stretch out some bit of profitability potentially in the next year or 2, but it's always a trade-off. Do we want the growth? And the key for this company is growth. We need to grow faster, and I'm going to make the decisions over the next 2, 6, 8 quarters that drive that long-term durable growth. And we're in the right spot to make those decisions. Thanks. Operator: The next question is from the line of Patrick Walravens with Citizens Bank. Kincaid LaCorte: This is Kincaid on for Patrick. Rory, I just wanted to poke you on this metric. You mentioned that completed sales transactions for the quarter were up 30% year-over-year, but obviously, revenue did not grow at the same rate. How do I think about that number in relation to performance? I mean, yes, I think that's where I'd love to be. Rory Read: Yes. Kincaid, the key there is I'm just trying to give you a sense with some anecdotal information that gives you a feel for activity. I keep telling you, I like the pipeline. I like the uptake from the customers. There are no question the customers are seeing Sprinklr as a better company. They're engaging with us. We can see it in the pipeline. We can see it in larger deals. I can tell you that when I first got here, we backed down new logo acquisition to about 20% of our volume. We're starting to crank that up. We want to -- as we go into FY '28, we want to drive that to a much higher rate next year, probably into the 30s. So that's a key component. I believe that from a standpoint of the customers, they see this kind of activity. They see the value of the platform. They're moving away from towers and spot solutions. They want to simplify their IT platform. I wanted to get a sense for that. I always talk about the pipeline and the activity. I want to give you a number. The key to subscription growth is you have to build it over multiple quarters. That's the key. We've seen our RPO come off the bottom of 3Q last year, which was the low point. We've seen it consistently build. We see our renewals rate for 3 quarters in a much better spot. We can see that we're building a firmer base to work from. We're 3 quarters into it. We need to run 2 more quarters together, and that will set the trajectory for next year. I think that gives you an indication that we have good activity on the underpinnings, but now we have to do it, you have to do it 5 quarters. And we're still living with that heightened churn from the first half of last year. Kincaid LaCorte: Spectacular. And then on the executive side, I'm super excited to hear that you're taking ownership and taking the lead on the services piece. I'm super excited by the addition of Tom. Who else do you need to add into this organization to make sure that you guys are going to be flying? Rory Read: Yes. We've done a very good job across the board of building out the leadership team, not only at the ELT level, but the next level and two levels down. Most all of our VP and SVP positions are complete. I mean there's a handful left out there. So I feel we have that operating organization in place. I think we want to get the head of Partners in place. We're going to shortly announce a new leader in Customer Success. And I think then it's really just doing the long-term leader for Service and Support. I'm in no gigantic rush to do that. I want to find that right person, but I also want to get my fingerprints on it before I pass it off to someone. And I don't want to give any sense that I'm not focused on our largest deals, our biggest renewals, and our data relationships with our key technology partners. That's always my first priority. Operator: Our next question is from the line of Raimo Lenschow with Barclays. Raimo Lenschow: Rory, we, kind of, use billings often as a leading indicator. And I know it can be noisy. And I got some of these points today on professional services on billings there. Is that what drove that number? Because if I use that as a leading number, that's obviously there's some different messages coming from that one. Can you speak to that, please? Rory Read: Billing? I didn't quite hear. You, kind of, cut out a little, sorry, Raimo. What did you say exactly? Raimo Lenschow: I said billings is, kind of, we use that often as a leading indicator for what's coming. I know you had noise from professional services. So is that all professional services? Or what's going on there? Rory Read: Yes, yes. There's a big chunk. I'll pass it to Anthony in a second. Sure. There was some in terms of professional service and some timing activity. I like the trajectory year-to-year at the halfway point. I like the RPO trend. I like the fact that we're seeing longer renewals. We're seeing early renewals. I think we're a work in progress. Let's keep going. I think we're at the halfway point of a World Cup game. I think we're tied, or we're ahead one. We got to execute. We got to keep going and deliver 3Q and 4Q. Anthony, any color you want to add on billings? Anthony Coletta: Yes. No, you're right, Raimo. This is mostly related to services billings. And while we don't guide on billings, we -- it came a bit softer than anticipated for the quarter. And -- but this is no change for the long run. You've seen the total RPO trajectory. And the fact that we've also closed some larger deals with longer periods and terms, et cetera, that's supporting the model. But for the short term, obviously, services billings came a bit softer than anticipated, but that's pretty much it. Raimo Lenschow: Okay. Perfect. And then the second question was, like, what are you seeing at the moment in the market in terms of new project starts? I know, like, you're competing on something, but how does [indiscernible] in terms of AI, there's a lot of talk about crowding out and things like that. Like, what are you seeing in the sales engagements? Rory Read: What I said is the key. I think our Bear Hugging, Raimo, is definitely working. With our core business, I think we've seen a good uptake in interest. Our pipeline looks good in the second half. We've got more large deals in the next 3 quarters than we've had in my time that I've been here. I think our run rate business looks positive. I think the activity and interest level of customers, and they're seeing a different Sprinklr. Over 200 AI Agentic Copilot engagements, we track every one of them. And we've implemented Project Blitz, which we're trying to deliver code and changes using AI and our own internal processes every week or two moving from a quarterly release cycle that we used to go on. This is much faster innovation. And then Blaze, we have forward-deployed engineers on over 70%, the vast majority of those customer AI engagements. So we see good activity at large. We see good activity on run rate. We see good engagement. And then we have -- in the must-win AI space, I like 200 engagements is a good number. We're growing at over 40-plus percent in that space. This is the right indicators. And if I continue to turn on the spigot as I've hardened the infrastructure on new logo acquisition, we should see that next year in FY '28. And that's how we're positioning this transition. Operator: Our next question is from the line of Catharine Trebnick with Rosenblatt Securities. Catharine Trebnick: A quick question on net dollar expansion. This is the fourth quarter of north of 110%, 5 consecutive quarters. How sustainable is that level? And is it driven -- what's it driven by seat expansion, module attach, price? More color on that would be appreciated. Anthony Coletta: Yes. As you say, Catharine, it's a good trend. So we have been fairly steady on that trend overall. It's been in the right ballpark. It can vary from one quarter to the other, but it's still solid. And as I mentioned, we also look closely based on our go-to-market focus and strategy on the $1 million-plus cohort in terms of net dollar expansion. And this is for 5 consecutive quarters north of 110%, as I said. So it's essentially, we are seeing more renewals and more NAR growth, and we have a customer sentiment that is really close to the bottom now in terms of uptick and firming up. So we expect this to be a metric that will continue to improve over time and to stay steady. But we don't expect this to be lower than where we are. We expect this to firm up actually. And this is actually when you look at the leading indicators, this is what those leading indicators are telling us in terms of ARR, in terms of total RPO, et cetera. So this is pointing that direction. But there was a bit of this transition also in the space across the different segments. And you can see that between -- when you look at the difference between the $1 million cohort and the rest. So you could see that there was some transition happening underneath. But we see it stable and probably firming up as we go. Rory Read: And by the way, Catharine, I think it reflects on Bear Hug. I mean, as we've addressed some of the issues from the previous 3 or 4 years, our enterprise customers are seeing a different Sprinklr. And as we've taken Bear Hug lower and lower into the cohorts, we see an improvement in terms of renewal rates and expansion. There's no question. 250 and below is the last space for us to tackle with Bear Hug. And I believe the work we're doing with Project Cornerstone is going to yield the right outcomes there. I believe that we're seeing the right momentum, the right customer sentiment. And I think we have the right solution. We have this access to data that they need in the new buying models that's almost unmatched in the marketplace. And with better execution, better engagement, we're seeing better uptick from our customers. Operator: The next question is from the line of Mason Marion with Cantor Fitzgerald. Mason Marion: I want to go back to the Middle East. I think you had a few deals slip last quarter. Did you see those close? Are you still seeing ongoing disruptions in the region? Or are you getting back to business as normal there? Rory Read: Yes. Thanks, Mason. What I see is a gritty determined team in Sprinklr Middle East. They're doing a great job in a tough environment. We saw yesterday things heat up again. The thing is a fluid structure. We saw the deals that slipped from 1Q pretty much close in 2Q, but then we saw some other deals close. They've done a good job of executing and delivering. They have the pipeline out there to have a quite interesting uptick. I'd like to see this thing -- this macro situation stabilize a bit more, so that team could run like I think they can. They've done a good job. I think they're delivering at a strong level, but I think there's much more work to get there once that environment settles down. I still think it's a bit choppy. And so we're not counting on any kind of breakout numbers at this point, but I am counting on that team to show the grit and determination that they've shown through the first half to keep delivering. Mason Marion: Maybe one more on that topic. I know you had to migrate those customers to your Irish data center. Are you planning on keeping them in the Irish data center? Are you going to move them back to the region? And then how is that impacting your gross margins? Rory Read: Yes. We had to put up a new capability in region. I think that's partial. Two reasons, because we wanted some of our customers need to based on their local legal and regulatory issues return. And two, I think there is good demand in that region on a strategic time line, the next 6, 12, 18, 24 months. So we're building some more capacity on the COGS side, both around sovereign data access, geofencing concepts around the Middle East and around Asia, where we see interesting strategic demand. We'll make those investments now so that we're ready. But we're now starting to move some of those customers back to the Middle East and position ourselves for future opportunities that we see in the pipeline. Operator: Our next question is from the line of Elizabeth Porter with Morgan Stanley. Elizabeth Elliott: I wanted to develop on the subscription revenue guidance. When we're looking at the full year, it looks like the Q4 implies a bit of a deceleration in growth just exiting the year. So I was hoping you could put a finer point on what are some of the measurable metrics, whether it's in net new ARR, CRPO, retention that really support the confidence that Sprinklr is moving from the execution phase into the acceleration phase in fiscal '28? And how much of it is rooted in what you're seeing today versus still needing to execute on in the back half of the year? Rory Read: Yes. Thanks, Elizabeth, and great to talk to you, and welcome back. Hey, I think, Elizabeth, the key here is 3Q and 4Q. We're keeping our powder dry. We're making sure we execute. We've done 3 good quarters in a row that are building the foundation. You know, in a subscription business and with this kind of software, you have to run 4 quarters. We have to clean up that accelerated churn from the first half of last year. That's starting to get behind us, right? And we've seen 3 very predictable good quarters on renewals, on NAR, on those expansion. But it's only half time. We have to deliver 3Q and 4Q. How we execute 3Q and 4Q sets up the trajectory for next year. The feedback I give you is we're where we would like to be on the transformation at this midpoint of this fiscal year. We see the deals and the opportunities. Now we have to execute and close them in 3Q and 4Q. We will give you an update at the end of 3Q. And then based on that, we'll give you an update on 4Q. That will set the trajectory of next year. That's the key. That's where we sit. Operator: The next question is from the line of Tyler Radke with Citi. Tyler Radke: Rory, you talked about 200 active AI engagements, which is great to hear. I'm wondering if you could just compare and contrast the capabilities and use cases that you're seeing in those AI engagements versus, say, earlier this year or a year ago. And for the engagements that initially translate to a deal, what type of uplift? Or how can you sort of quantify what you're booking in terms of ACV? Rory Read: Yes. Thanks, Tyler. That's an awesome question. I think the key here is we have over 300 AI engineers in place, forward-deployed capabilities. We see the application of the AI technology internally, both in our support services and our engineering team playing real important dividends. As we look at these 200 engagements and we look back maybe 3, 4 quarters, they're in the Agentic space, the Copilot space. Those are primary and some of the insight activities. In 3, 4 quarters ago, it's a lot of POCs and a lot of concepts. People were excited about it, but they didn't really know how to yield. When you get to the detailed execution, you have to create the workflows, the APIs that link the data and then you have to have the right contextual data unlock the Agentic power of the solution. Copiloting is straightforward that gives you the knowledge and the productivity, but full Agentic, you really need that data and execution. And that's not a 2-week project. Those projects to go implement them, they take time. They might take 2 months, 3 months, and really execute them well. But I think what we're seeing, and we've tracked every single project, and we are looking at every project, what went well, what needed to change. The key for us moving forward is making sure that we're after those POCs, which anybody can do and they're fancy and look nice, make sure there's a real understanding of what the workflow that we're going to move to an Agentic solution is and how we're going to link the contextual data that creates the yield. I think the knowledge and experience that our teams and our customer has is at a much higher level than it was 3, 4 quarters ago. I think the practical execution and leveraging this powerful set of data in Sprinklr, it should be part of that acceleration phase next year. We have to win in the Agentic space because otherwise, you just become a pipe. You don't want to be a pipe. You want to be a player in that. 200 engagements, very nice. Like them, they're a key driver for the growth that comes over the next 2, 3 years. The key here is take the learnings over the past 2, 3, 4 quarters, keep refining it over the next couple of quarters and demonstrate those outcomes that we are seeing with customers now. These are not POCs. These are real returns and real deflection rate, real cost savings. And remember, we've been doing this at scale with some of our largest customers for 7, 8 years, like one of the largest technology companies in Texas. We've had a long relationship in this AI space, and that's what's happening in that space. So very different than 3, 4 quarters ago. And I think both sides, the customer and us have learned how to really turn it into outcomes. Operator: The next question is from the line of Clark Wright with D.A. Davidson. Clark Wright: I appreciate the added commentary on new logo growth assumptions in the current pipeline. Could you potentially elaborate on from an industry perspective, if you're seeing traction in specific end markets? Rory Read: Yes. So Clark, great to talk to you. What we did when I got here, and it was 3.5 years of declining activity, we said, hey, we got to back off a little bit and get our house in order. Let's harden the CCaaS space, get it mature, get our processes in order, let's accelerate our innovation engine, and let's start doing what we say. We must be accountable to customers. And that's what Bear Hug's about, do what we say and own what we do. What we're seeing is we're seeing traction in the idea across these enterprise customers. We see it in banking. We see it in retail. We see it in pretty much all of the spaces we play. That's not something different in terms of that space. It's really about seeing this take hold and really getting that in place. Clark Wright: Awesome, appreciate that commentary. Could you maybe also just talk about the difference in the upper echelon of customers that are utilizing your AI offerings today versus the strategy in order to proliferate your AI offerings across the broader customer base? Rory Read: Yes. What we're seeing is we're seeing across these 200 engagements, AI, we're seeing it across our enterprise, these iconic brands. They're very engaged. They know the power of the customer signals that we're able to pull together. They're creating better insights. They're creating better Agentic. We're seeing it both in CCaaS and on the core side, both. And we're seeing them have a hunger and desire for outcomes. I think we're past the flashy part where everybody is like, "AI is going to change everything," and I got to do AI. Now we're into the phase where we've got to drive real efficiency, real outcomes in CCaaS. We've got to create actionable insights in the core, and marketing, and social spaces. I think contextual data and the data that we bring together across these customer signals is what enables that to happen. Some of the execution and people run around and say, "Oh, you can do it in 10 minutes." Remember, you've got to define the workflows. You've got to link the data, pull it together, and let the AI engine create the outcome. We are seeing it at the top of our stack all the way through the top of commercial. There's definitely a desire and they have the data there. So we see this as a key enabler both for our service business and for our social business. And in terms of new logos, we back that down. I think as we will be ready at the beginning of FY '28, we know it's a 6- to 9-month, kind of, sales cycle. We're starting to turn the new logo engine on now so that we're ready in the first half. Does that help, Clark? Clark Wright: No, that's awesome. Thank you. Operator: At this time, we've reached the end of our question-and-answer session. I'll turn the floor over to Rory for closing comments. Rory Read: Yes. I want to thank everyone for joining today. I really appreciate the continued interest. Hey, we are where we expected to be minus the transgression in terms of services. I think that's a tactical couple of few quarter cleanup. I think it's really just the transition of that one large project to be more efficient. I'll oversee that in the tactical or interim time period. The key for us is we're 3 quarters in of improving momentum, where predictability is getting better. We've hardened the infrastructure. We're becoming much more enterprise mature. We're seeing our customers react to it in terms of activity, engagement, and interest. The key for us is execute 3Q and 4Q. That's the setup that gives you the trajectory into FY '28. Those are the key. I think we'll continue to Bear Hug. We'll keep focusing, but I like where we're sitting. We have more work to do. Appreciate your interest, and we'll keep you updated as we move forward. Thanks, everybody. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time. We thank you for your participation. Before you buy stock in Sprinklr, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sprinklr wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sprinklr (CXM) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

Sprinklr (CXM) came back into focus for investors after its latest quarterly earnings and updated full year revenue guidance, which showed modest revenue growth and a mixed profit picture. The company reported second quarter revenue of US$213.74 million compared with US$212.04 million a year earlier, while net income for the period declined to US$7.12 million from US$12.62 million. Sprinklr's latest earnings and modest full year revenue guidance reset have come alongside sharp share price moves, with the stock down 10.22% on a 1 day basis and 21.41% over 7 days, yet still showing a 90 day share price return of 15.99% while the 1 year total shareholder return is down 20.31%. This suggests that short term momentum has faded even as some investors reassess longer term prospects around its AI focused offerings and execution on services profitability. Spot similar AI focused stories in customer experience software by scanning our hand picked 71 profitable AI stocks that aren't just burning cash, which pair revenue traction with positive earnings. After a sharp pullback and modest revenue outlook reset, Sprinklr now sits at a very different entry price than it did just a few weeks ago. Does that make it sensible to consider an investment today, or would it be more prudent to wait for potentially more favorable terms? Sprinklr's most followed valuation narrative places fair value at $8.44 compared with the last close at $6.24, which frames the recent sell off in a very different light. Read the complete narrative. Want to see what kind of revenue run rate and margin profile that AI push is aiming for? The narrative leans on specific growth and profitability paths that are not obvious from headline guidance alone. Result: Fair Value of $8.44 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Sprinklr still faces risks around customer concentration and rising AI related infrastructure costs, which could pressure revenue stability and margins if these risks worsen. Find out about the key risks to this Sprinklr narrative. The earlier fair value of $8.44 paints Sprinklr as undervalued. However, the current P/E of 63.1x is roughly double the US Software industry at 31x and also above peers at 44.1x. It also sits well above the fair ratio of 37.9x. That gap could mean valuation risk if sentiment cools. For a closer look at how this pricing compares across earnings multiples and what it could mean for your risk tolerance, See what the numbers say about this price — find out in our valuation breakdown. If the mixed signals around Sprinklr leave you uncertain, use that urgency to look through the full picture of risks and potential rewards. To see both sides set out clearly, review the 2 key rewards and 2 important warning signs Do not stop your research with Sprinklr. If you skip the wider opportunity set, you could miss stocks that fit your goals even better. Target potential mispricing by scanning companies that our models flag as quality picks on the 52 high quality undervalued stocks. Strengthen your focus on resilience by reviewing stocks with solid financial footing using the list of solid balance sheet and fundamentals (53 results). Hunt for future standouts early by checking companies that fly under the radar on the 21 high quality undiscovered gems. 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. Companies discussed in this article include CXM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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]