EarningsQ2 2027 Earnings Report
MX:CXM Q2 2027 EPS Results
Actual EPS$1.87
Consensus EPS$1.77
Beat/MissBeat by +$0.10
One Year Ago EPS$2.21
MX:CXM Q2 2027 Revenue Results
Actual Revenue$3.63B
Expected Revenue$3.64B
Beat/MissMissed by -$11.98M
YoY Revenue Growth+0.80%
Earnings Announcement Details
QuarterQ2 2027
Date09/02/2026
TimeBefore Open
Conference CallWednesday, September 2, 2026
MX:CXM Upcoming Earnings
Sprinklr's next earnings date is estimated for December 9, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:CXM Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly optimistic, with management highlighting three consecutive quarters of improved execution, strong enterprise deal activity, improving renewal and expansion metrics, record total RPO growth, AI-native SKU ARR growth of 40%, a raised subscription revenue outlook, strong cash generation, and a debt-free balance sheet. The principal challenges were concentrated in professional services, including negative gross margin, softer billings, lower revenue guidance, and execution issues, alongside higher hosting and data costs, ongoing churn from the prior year, and Middle East disruptions. Management characterized the services issues as tactical and stated that the broader subscription business and transformation remain on track.Company Guidance
Q2 Revenue, Subscription Growth, and Profitability
Second-quarter total revenue was $213.7 million, up 1% year-over-year, while subscription revenue was $194.8 million, up 3% year-over-year. Non-GAAP operating income was $31.3 million, representing a 15% non-GAAP operating margin, and non-GAAP net income was $0.11 per diluted share.
Improved Execution and Customer Engagement
Management said the transformation remains on track and that the business has delivered 3 consecutive quarters of improved execution. NAR grew more than 50% year-over-year, renewal rates improved, and completed sales transactions increased 30% year-over-year.
Enterprise Deal Momentum
Sprinklr closed 4 $1 million-plus ARR deals during the quarter. Management also cited continued large-deal momentum, including a 5-year strategic agreement valued at well over $20 million and additional large opportunities expected in the second half.
Leadership Additions
Tom Addis joined as Chief Revenue Officer, bringing experience in driving growth, scaling customer-centric organizations, and building global sales teams. Jordi Ribas, President of Search & AI at Microsoft, joined Sprinklr's Board of Directors.
Market Recognition and Platform Scale
Gartner recognized Sprinklr as a leader in the 2026 Magic Quadrant for Social Media Management and Listening, positioning the company highest for ability to execute and furthest for completeness of vision. The platform ingests over 180 billion customer conversations annually.
AI Engagement and Product Momentum
Sprinklr has more than 200 AI engagements underway across its customer base, including Agentic AI and Copilot engagements. ARR for AI-native SKUs increased 40% year-over-year, with outsized growth in Agentic and Contact Center intelligence.
Expansion with Global Sports Betting and Gaming Customer
Sprinklr signed a 5-year agreement valued at well over $20 million with one of the world's largest sports betting and gaming companies. The agreement extends the platform across more than 35 global brands, supporting 1,500 contact center agents and 2,500 users worldwide.
Financial Services Customer Expansion
Sprinklr secured a $4 million TCV expansion with a leading financial software and services company. The partnership expanded from a departmental deployment to an enterprise-wide relationship spanning 5 brands and 8 business units, while consolidating 3 vendors and 6 contracts.
Strong Net Dollar Expansion in Large Accounts
Subscription revenue-based net dollar expansion was 102% in Q2. Net dollar expansion for the $1 million cohort was 112%, remaining above 110% for the fifth consecutive quarter.
Record Contracted Revenue Visibility
Total RPO reached $1.03 billion, up 11% year-over-year and marking the second consecutive quarter of double-digit growth. Current RPO was $614 million, up 3% year-over-year. Longer renewals and expansions increased average NAR contract length by more than 2 months for the second consecutive quarter.
Cash Generation and Balance Sheet Strength
Sprinklr generated $13.1 million of free cash flow in Q2 and $79 million in the first half of the fiscal year. The company ended the quarter with $453 million in cash, cash equivalents, and marketable securities, no debt, and improved cash conversion driven by cost discipline and robust cash collection.
Share Repurchase Completion
The $125 million accelerated share repurchase was completed, with approximately 22 million shares repurchased. As of August 28, Sprinklr had $75 million remaining under its $200 million authorized repurchase plan.
Raised Full-Year Subscription Revenue Guidance
Sprinklr raised its FY2027 subscription revenue guidance to $782.5 million to $784.5 million, representing 4% year-over-year growth at the midpoint.
Maintained Full-Year Revenue and Operating Income Outlook
Full-year total revenue guidance was reaffirmed at $866.5 million to $868.5 million, representing 1% year-over-year growth at the midpoint. Non-GAAP operating income guidance remains $139 million to $141 million, representing a 16% non-GAAP operating margin, with approximately $0.47 of non-GAAP net income per diluted share.
Updated Free Cash Flow Outlook
Sprinklr expects approximately $135 million of full-year free cash flow, representing a free cash flow margin of approximately 16%, with roughly $10 million expected in Q3.
AI Investment and Engineering Capabilities
Sprinklr has more than 300 AI engineers, including forward-deployed capabilities. Project Blitz is being used to deliver code and changes every week or two instead of the prior quarterly release cycle, while Project Blaze has forward-deployed engineers on over 70% of customer AI engagements.
Progress Toward AI-Driven Customer Outcomes
Management said AI engagements have progressed beyond proofs of concept toward real returns, including real deflection rates and real cost savings. Customers are applying the capabilities across Contact Center as a Service, marketing, social, and customer insight use cases.
Partner-Led Win Rate Advantage
Management said the three-way relationship among Sprinklr, a partner, and the customer produces approximately a 15-point higher win rate. Sprinklr plans to appoint a new partner leader reporting to the Chief Revenue Officer.
Broad Industry Traction
Management reported traction across enterprise customers in banking, retail, and substantially all of the markets in which Sprinklr operates.
Middle East Team Execution
Deals that slipped from Q1 largely closed in Q2, and the Middle East team continued to execute in a difficult environment. Management said the region has a pipeline that could support an uptick once the environment stabilizes.
MX:CXM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed