Sprinklr Reports Q2 2027 Earnings: Subscription Growth and Strategic Transition
Sprinklr (CXM) reported second-quarter earnings for fiscal year 2027, showing mixed performance across its revenue streams. Total revenue reached $213.7 million, up slightly from the prior year despite a decline in professional services revenue to $18.9 million due to completed large projects and soft demand. Subscription revenue grew by 3% year-over-year to $194.8 million as Sprinklr continues its shift toward a subscription-led business model. The company reported non-GAAP operating income of $31.3 million, with an operating margin of 15%, down from 18% in the same period last year due to challenges in professional services execution and partner cost overruns. Total RPO increased by 11% year-over-year to $1.03 billion, while current RPO rose modestly by 3%. Sprinklr also highlighted strong growth of its AI-native products with a 40% increase in ARR from those offerings. Looking ahead, the company raised full-year subscription revenue guidance and maintained confidence in long-term growth through strategic initiatives like the 'Bear Hug' customer retention strategy. However, management warned that continued pressure on professional services could impact near-term cash flow.
Tickers: $CXM
Topics: cash_flow operating_income professional_services revenue subscription_growth