Sprinklr, Inc.

What they do

Sprinklr sells subscriptions to a Unified-CXM platform that lets customer-facing teams — from Customer Service to Marketing — collaborate across internal silos and communicate with customers over digital and traditional channels. The platform spans four product suites: Sprinklr Social, Sprinklr Insights, Sprinklr Marketing, and Sprinklr Service. Products are licensed both per-user and by volume tier, with related professional services. As of January 31, 2026, it served 1,677 customers in more than 90 countries, including 59% of the Fortune 100, and the platform supports over 150 languages.

Revenue drivers

• Unified-CXM platform subscriptions — Primary revenue source: subscriptions to the four suites (Social, Insights, Marketing, Service), licensed per-user or by volume tier. Q2 FY2027 subscription revenue was $194.8 million, up 3% year-over-year and about 91% of total quarterly revenue of $213.7 million.
• Large enterprise cohort ($1.0M+ subscription revenue) — 141 customers each generated $1.0 million or more in trailing-12-month subscription revenue as of January 31, 2026 (down from 149 a year earlier), and average subscription revenue in that cohort exceeded $3.0 million in the most recent fiscal year.
• Professional services — Related services sold alongside the platform. It is the residual of total revenue after subscription revenue — roughly $18.9 million in Q2 FY2027, based on total revenue of $213.7 million versus subscription revenue of $194.8 million.
• Existing-customer expansion — Growth is driven by existing customers adding products across business units and geographies; trailing-12-month net dollar expansion rate was 102.4% as of July 31, 2026, versus 102.2% a year earlier.

Recent performance

For Q2 FY2027 (ended July 31, 2026), total revenue was $213.7 million, up 1% year-over-year, and subscription revenue was $194.8 million, up 3%. GAAP operating income was $10.0 million (5% margin) versus $16.3 million (8%) a year earlier; non-GAAP operating income was $31.3 million (15% margin) versus $38.2 million (18%). GAAP diluted EPS was $0.03 versus $0.05, and non-GAAP diluted EPS was $0.11 versus $0.13. Net cash provided by operating activities was $18.2 million, free cash flow was $13.1 million, and RPO was $1.03 billion, up 11%, with cRPO up 3% year-over-year.

Strategy

Management describes an ongoing 'transformation' aimed at positioning Sprinklr for durable growth, citing AI innovation, new ARR growth, increasing enterprise adoption, and contracted demand reflected in total RPO growth. The company has strategically refined its customer profile toward top-tier enterprise accounts, which contributed to total customers falling to 1,677 at January 31, 2026 from 1,930 a year earlier. It continues to invest in the Unified-CXM platform and new features across all four suites. The breadth of the platform is intended to reach buyers beyond traditional social media roles, including technology, call center operations, and data and insights teams.

Risks

• Slowing growth — Total revenue grew only 1% year-over-year in Q2 FY2027, and the company's own risk factors state its recent growth may not be indicative of future growth.
• Customer count decline — Total customers fell to 1,677 at January 31, 2026 from 1,930 a year earlier, and the $1.0M+ cohort fell to 141 from 149, which the company attributes only partly to a deliberate shift upmarket.
• Margin compression — Q2 FY2027 GAAP operating margin fell to 5% from 8%, and non-GAAP operating margin fell to 15% from 18%, year-over-year.
• Profitability history and volatility — The company states it has incurred significant net losses in the past; annual net income fell to $22.9 million in fiscal 2026 from $121.6 million in fiscal 2025, and it states it may not generate sufficient revenue to achieve and maintain profitability.

Outlook

For Q3 FY2027 (ending October 31, 2026), management guides to subscription revenue of $196.0–$197.0 million, total revenue of $215.0–$216.0 million, non-GAAP operating income of $33.5–$34.5 million, and non-GAAP EPS of approximately $0.11 on 239 million diluted shares. For the full fiscal year ending January 31, 2027, guidance is subscription revenue of $782.5–$784.5 million, total revenue of $866.5–$868.5 million, non-GAAP operating income of $139.0–$141.0 million, and non-GAAP EPS of approximately $0.47 on 240 million diluted shares. The company cautions that its actual operating results may differ significantly from any guidance provided.