Sprinklr Q2 2027 Earnings Call Summary: Strategic Transformation and Operational Shift
In its second-quarter earnings call for fiscal year 2027, Sprinklr outlined a strategic transformation aimed at accelerating growth through AI-native platforms. The company is transitioning from technical debt cleanup to an acceleration phase expected in FY28. A 'Bear Hug' strategy has driven enterprise retention and sales transaction growth of 30% YoY. However, professional services underperformed due to cost overruns and execution issues in a specific region. CEO Rory Read now leads the services division temporarily to improve partner economics and decision-making speed. Sprinklr is investing heavily in AI talent and infrastructure to support more than 200 active Agentic AI customer engagements. The company plans to shift its innovation cycle from quarterly releases to weekly or bi-weekly updates under 'Project Blitz' to maintain leadership in AI-powered CX. Looking ahead, the firm expects professional services revenue to decline by 34% YoY in Q3 due to structural shifts and completed legacy projects but anticipates subscription growth resuming. Management sees FY2027 as a turning point with improved leading indicators and contracting demand.
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Topics: AI strategy earnings enterprise retention operational transformation