Sprinklr (CXM) AI Stock Analysis

Company Guidance

For Q3, Sprinklr expects total revenue to be in the range of $215 million to $216 million, subscription revenue to be in the range of $196 million to $197 million, representing 3% growth year-over-year at the midpoint, professional services revenue of $19 million, down 34% year-over-year, professional services gross margin to be negative 15%, non-GAAP operating income to be in the range of $33.5 million to $34.5 million, non-GAAP net income per diluted share of approximately $0.11, assuming 239 million diluted weighted average shares outstanding, $3 million in other income, a tax provision of approximately $10 million, and roughly $10 million of free cash flow; for the full year FY '27, it expects subscription revenue to be in the range of $782.5 million to $784.5 million, representing 4% growth year-over-year at the midpoint, 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, professional services revenue of $84 million, non-GAAP operating income to be in the range of $139 million to $141 million, a 16% non-GAAP operating margin, non-GAAP net income per diluted share of approximately $0.47, assuming 240 million diluted weighted average shares outstanding, approximately $41 million in total tax provision, an estimated $15 million in other income, approximately a 26% effective tax rate, and a full year free cash flow margin of approximately 16%, representing about $135 million of free cash flow.