Sprinklr's Q2 FY26 revenue growth and profitability improvements, what are the long-term investment prospects?

**Sprinklr's Long-Term Investment Prospects Appear Strong** 1. **Consistent Revenue Growth**: Sprinklr's Q2 FY26 revenue grew by 8% year-over-year to $212 million, surpassing analyst expectations. This consistent growth, especially in subscription revenue which increased by 6% to $188.5 million, indicates a solid customer base and a scalable business model. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |CXM|CXM.N|Sprinklr|2025 Q3|7.7091104253320815|2.00689E8|169| |CXM|CXM.N|Sprinklr|2025 Q4|4.290267601064843|2.02539E8|169| |CXM|CXM.N|Sprinklr|2026 Q1|4.869410792108513|2.055E8|169| |CXM|CXM.N|Sprinklr|2026 Q2|||169| 2. **Margin Expansion and Profitability**: The company's non-GAAP operating margin improved to 18% in Q2 FY26, up from 12% in Q3 FY25. This significant increase in profitability reflects operational efficiency and cost discipline, which are positive signs for long-term investors. |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |CXM|CXM.N|Sprinklr|2025 Q2|-82.4415832141154|1841000|169| |CXM|CXM.N|Sprinklr|2025 Q3|-38.38038545411682|1.0455E7|169| |CXM|CXM.N|Sprinklr|2025 Q4|366.7218464740103|9.8679E7|169| |CXM|CXM.N|Sprinklr|2026 Q1|-114.74515704344554|-1568000|169| |code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code| |---|---|---|---|---|---|---| |CXM|CXM.N|Sprinklr|2025 Q2|-16.020432469629203|3.173|169| |CXM|CXM.N|Sprinklr|2025 Q3|-31.330807946077638|3.8612|169| |CXM|CXM.N|Sprinklr|2025 Q4|117.55855701829374|15.27|169| |CXM|CXM.N|Sprinklr|2026 Q1|-114.06011019588331|-0.763|169| 3. **Strategic Leadership Changes**: The appointment of Scott Millard as Chief Revenue Officer has been a pivotal moment for Sprinklr. Millard's extensive experience in AI sales and his track record of driving growth at scale are expected to further enhance Sprinklr's SaaS growth potential. 4. **Financial Resilience**: Despite facing macroeconomic headwinds, Sprinklr's financial resilience is evident in its ability to increase non-GAAP operating income by 94% to $38.2 million. This resilience is a strong indicator of the company's ability to navigate volatility and invest in long-term growth. 5. **Market Position and Innovation**: Sprinklr's focus on AI-powered customer experience management and its commitment to innovation position it well for long-term growth. The company's transformation efforts and investment in hybrid pricing and AI features are intended to reduce complexity for large clients and add value to its platform. 6. **Industry Position**: Sprinklr's Q2 results outpace the broader SaaS industry's average growth, which is facing headwinds from macroeconomic uncertainty. This suggests that Sprinklr is well-positioned within its sector and has the potential to continue to outperform peers. In conclusion, Sprinklr's Q2 FY26 performance, coupled with its strategic leadership changes and financial resilience, provide a strong foundation for long-term investment prospects. Investors should monitor key indicators such as customer acquisition costs, retention rates, and AI-driven product adoption to assess the company's continued growth trajectory.