Sprinklr, Inc. (CXM) Earnings
Sprinklr, Inc. is expected to report next earnings on December 2, 2026 (in NaN days), with a consensus EPS estimate of $0.13. CXM has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise -4.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Sep 2, 2026 | $0.10 | $0.11 | +4.8% | $214M | -0.7% |
| Jun 3, 2026 | $0.10 | $0.11 | +8.9% | $219M | +1.5% |
| Mar 11, 2026 | $0.10 | $0.04 | -63.1% | $221M | +1.7% |
| Dec 3, 2025 | $0.09 | $0.12 | +31.2% | $219M | +4.5% |
| Sep 3, 2025 | $0.10 | $0.13 | +30.0% | $212M | +1.1% |
| Jun 4, 2025 | $0.10 | $0.12 | +21.9% | $206M | +1.8% |
| Mar 12, 2025 | $0.07 | $0.10 | +42.9% | $203M | +0.3% |
| Dec 4, 2024 | $0.08 | $0.10 | +25.0% | $201M | +1.5% |
| Sep 4, 2024 | $0.07 | $0.06 | -14.3% | $197M | +1.4% |
| Jun 5, 2024 | $0.07 | $0.09 | +28.6% | $196M | +0.8% |
| Dec 6, 2023 | $0.07 | $0.11 | +57.1% | $186M | -1.3% |
| Sep 6, 2023 | $0.05 | $0.10 | +100.0% | $178M | +2.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2027 · September 2, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **Strategic Transformation**: The company is in the execution phase of its transformation, having delivered three consecutive quarters of improved execution. CEO Rory Read is temporarily leading the services organization to fix operational issues. - **Customer Success & Retention**: Renewal rates have improved, and net dollar expansion for the $1 million+ ARR cohort remained above 110% for five consecutive quarters. Completed sales transactions increased 30% YoY. - **AI Innovation**: Over 200 AI engagements are underway, with a shift from proof-of-concepts to practical agentic AI implementations. Gartner recognized Sprinklr as a Leader in the 2026 Magic Quadrant for social media management. - **Key Deals**: Secured a five-year strategic agreement worth over $20 million with a major sports betting/gaming company and a $4 million TCV expansion with a leading financial software company, both consolidating multiple vendors into Sprinklr’s platform. - **Leadership Changes**: Appointed Tom Addis as Chief Revenue Officer and Jordi Rivas to the Board of Directors to drive growth and provide AI/product expertise.
Guidance
- **Q3 FY27 Total Revenue**: Expected between $215 million and $216 million, slightly down year-over-year due to a significant reduction in professional services revenue. - **Q3 FY27 Subscription Revenue**: Expected between $196 million and $197 million, representing 3% growth at the midpoint. - **Q3 FY27 Non-GAAP Operating Income**: Expected between $33.5 million and $34.5 million ($0.11 per diluted share). - **FY27 Total Revenue**: Reaffirmed range of $866.5 million to $868.5 million (1% growth). Lowered professional services estimate to $84 million. - **FY27 Subscription Revenue**: Raised guidance to $782.5 million–$784.5 million (4% growth), driven by better renewal rates and pipeline conversion. - **FY27 Non-GAAP Operating Income**: Expected between $139 million and $141 million (16% margin). - **FY27 Free Cash Flow**: Expecting ~16% margin (~$135 million), lower than previous estimates due to reduced services billings and higher hosting costs for AI investments.
Segment performance
Total revenue was $213.7 million, up 1% year-over-year. Subscription revenue contributed the majority of growth at $194.8 million (up 3% YoY), representing approximately 91% of total revenue. Professional services revenue was $18.9 million, down significantly from the prior year due to softness in managed services and the completion of large implementation projects, accounting for roughly 9% of total revenue.
Risks & headwinds
- **Professional Services Margins**: Services gross margin was negative 22% in Q2 and expected to be -15% in Q3 due to partner cost overruns, execution challenges, and an elevated baseline from large past implementations. - **AI Infrastructure Costs**: Data and hosting costs for AI-native SKUs rose 40% YoY, pressuring margins as the company invests in cloud infrastructure and talent. - **Geopolitical Disruption**: Ongoing instability in the Middle East has caused deal slippage and required migration of some customers to Irish data centers, though new regional capacity is being built. - **Execution Dependency**: Future growth relies heavily on executing well in Q3 and Q4 to maintain momentum; failure could delay the transition to the 'acceleration phase' in FY28.
Analyst Q&A
Q: Analyst asked if professional services underperformance signals weak demand or execution issues.
A: Management confirmed it is purely an execution/transition issue following a massive successful implementation that strained partner resources. They emphasized that large deal wins continue, and direct oversight will correct the partner/internal mix within a few quarters without impacting new logo acquisition priorities.
Q: Analyst questioned how to interpret the 30% YoY increase in completed sales transactions despite only 1% revenue growth.
A: CEO explained this metric reflects improved pipeline activity and customer sentiment. While subscription growth requires multi-quarter consistency, the spike indicates successful 'bear-hugging' efforts and a shift toward simplifying IT stacks, setting the stage for stronger new logo growth in FY28.
Q: Analyst sought clarity on the sustainability of >110% net dollar expansion for large cohorts and drivers behind it.
A: CFO stated the trend is stable and firming up, driven by renewals and expansion within the 'bear-hug' enterprise segment. CEO added that addressing legacy issues has improved customer confidence, with Project Cornerstone targeting further improvements in smaller cohorts.
Q: Analyst asked about the status of Middle East deals and data center migrations.
A: CEO noted that slipped Q1 deals closed in Q2, but the region remains choppy. Customers were migrated to Ireland for compliance, but Sprinklr is building sovereign data capacity in the Middle East to retain clients and capture future pipeline opportunities once stability returns.
Q: Analyst inquired about the maturity of AI engagements compared to earlier POCs.
A: CEO highlighted a shift from theoretical POCs to practical, workflow-integrated agentic AI deployments. With 200+ active engagements, the focus is now on linking contextual data to yield real cost savings and efficiency, moving beyond flashy demos to measurable business outcomes.