Sprinklr — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance

• Total revenue for Q2 was $213.7 million, a 1% increase year-over-year from $212.0 million.
• Subscription revenue was $194.8 million, up 3% year-over-year from $188.5 million.
• GAAP operating income was $10.0 million compared to $16.3 million in the prior year period; GAAP operating margin was 5% versus 8%.
• Non-GAAP operating income was $31.3 million compared to $38.2 million in the prior year period; non-GAAP operating margin was 15% versus 18%.
• GAAP net income per share (diluted) was $0.03 compared to $0.05 in the prior year period.
• Non-GAAP net income per share (diluted) was $0.11 compared to $0.13 in the prior year period.
• Net cash provided by operating activities was $18.2 million, with free cash flow of $13.1 million.
• Total cash, cash equivalents, and marketable securities totaled $452.9 million as of July 31, 2026.
• Remaining Performance Obligations (RPO) were $1.03 billion, up 11% year-over-year; current RPO (cRPO) increased 3% year-over-year.
• Deferred revenue decreased to $380.0 million from $420.3 million at the beginning of the fiscal year.

Guidance and Future Outlook

• Q3 Fiscal 2027 total revenue guidance is $215.0 million to $216.0 million; subscription revenue is $196.0 million to $197.0 million.
• Q3 Fiscal 2027 non-GAAP operating income guidance is $33.5 million to $34.5 million.
• Q3 Fiscal 2027 non-GAAP net income per share guidance is approximately $0.11, assuming 239 million diluted weighted-average shares.
• Full Fiscal 2027 total revenue guidance is $866.5 million to $868.5 million; subscription revenue is $782.5 million to $784.5 million.
• Full Fiscal 2027 non-GAAP operating income guidance is $139.0 million to $141.0 million.
• Full Fiscal 2027 non-GAAP net income per share guidance is approximately $0.47, assuming 240 million diluted weighted-average shares.

Business Segments and Product Lines

• Sprinklr operates a unified customer experience management (Unified-CXM) platform combining human intelligence with artificial intelligence.
• The platform serves 1,600+ enterprises, including 59% of the Fortune 100, with customers such as Microsoft, P&G, and Samsung.
• Management highlighted increasing enterprise adoption and contracted demand underpinned by RPO growth as key drivers.
• The company is focusing on AI innovation as a central component of its business transformation.

Risks and Challenges

• The market for Unified-CXM solutions is rapidly evolving, and the company faces risks related to competition and the ability to maintain profitability.
• Revenue growth rates have fluctuated in prior periods, and the company derives the substantial majority of revenue from subscriptions.
• Risks include the potential for stock repurchase program benefits not being realized, long and unpredictable sales cycles for enterprise clients, and dependence on a relatively small number of large enterprises.
• The company faces risks regarding data privacy, security, reliance on third-party cloud providers, and potential litigation.
• Macroeconomic factors, including inflation, interest rates, foreign currency fluctuations, and geopolitical instability, could materially impact results.

Management Commentary and Tone

• CEO Rory Read stated the company delivered "solid second quarter results" and continued to strengthen business fundamentals.
• Management expressed confidence that AI innovation, new ARR growth, and enterprise adoption demonstrate progress on their transformation and position the company for durable growth.
• The tone reflects a focus on long-term performance and the transition to a more profitable, AI-native business model.

Other Key Points

• During the first fiscal quarter of fiscal year 2027, the company changed the presentation of share repurchase activity within stockholders' equity from accumulated deficit to additional paid-in capital.
• The company repurchased Class A common shares for $125.8 million during the six months ended July 31, 2026.
• The company acquired a business for $4.9 million during the six months ended July 31, 2026.
• A conference call to discuss results and outlook was held on September 2, 2026, at 8:30 a.m. Eastern Time.