How did CXM's EPS outperform forecasts in Q3 2025?

Sprinklr's (CXM) EPS outperformed forecasts in Q3 2025 due to several key factors:

1. Strong Revenue Growth: CXM reported revenue of $202.5 million for Q4 2025, surpassing the expected $200.52 million. This 4% year-over-year increase reflects robust demand for their Unified-CXM platform and successful customer expansion.
2. Subscription Revenue Strength: Subscription revenue, a core component of CXM's business model, grew by 3% year-over-year to $182.1 million. This steady increase in subscription revenue from existing customers underscores CXM's ability to retain and expand its customer base.
3. New Customer Growth: CXM experienced an 18% year-over-year increase in customers generating over $1 million in annual subscription revenue. This significant growth in high-value customers highlights CXM's successful customer acquisition strategies and the value they provide to large enterprises.
4. Geographical Expansion: With 41% of revenue generated from markets outside the Americas, CXM's international expansion has contributed to their revenue growth. This diversification reduces reliance on any single market and enhances global reach, providing a stable revenue base.
5. Financial Management: CXM's gross profit margin remained strong at 73.29%, indicating efficient cost management and a profitable business model. The company's focus on AI-driven customer experiences and effective cost control measures have been instrumental in maintaining profitability.

In conclusion, CXM's EPS outperformance in Q3 2025 can be attributed to strong revenue growth, particularly in subscription services, new customer acquisition, geographical expansion, and effective financial management. These factors combined have enabled CXM to exceed earnings expectations and deliver robust financial performance.