Sprinklr Reports Q2 Earnings, Highlights Subscription Growth and Services Challenges
Sprinklr (NYSE:CXM) reported second-quarter fiscal 2027 revenue of $213.7 million, a 1% increase year-over-year driven by subscription growth despite weaker professional services performance. Subscription revenue rose 3% to $194.8 million with a strong net dollar expansion rate and increased total remaining performance obligations. However, professional services underperformed expectations due to execution issues in one region and partner cost overruns, resulting in a negative 22% non-GAAP gross margin for the segment. The company raised its fiscal 2027 subscription revenue guidance to $782.5 million–$784.5 million while maintaining total revenue expectations of $866.5 million–$868.5 million. Sprinklr also reported strong AI engagement growth and completed a significant share repurchase, ending the quarter with $453 million in cash and no debt. Management emphasized ongoing transformation efforts to improve profitability and customer retention while addressing service delivery challenges.
Topics: financial_performance guidance_update professional_services revenue_growth subscription_revenue