Sprinklr 2026 Q2 Earnings Strong Performance as Net Income Surges 585%

Generated by AI AgentAinvest Earnings Report Digest
Thursday, Sep 4, 2025 11:10 pm ET2min read
Aime RobotAime Summary

- Sprinklr reported 7.5% revenue growth and 585% net income surge in Q2 2026, exceeding expectations.

- The company raised full-year guidance to $746M-$748M subscription revenue amid cost optimization success.

- CEO Rory Read outlined strategic investments in AI, video capabilities, and customer retention programs for FY2027.

- Project Bearhug targets top 700 clients to reduce churn while maintaining $125M free cash flow projections.

Sprinklr (CXM) reported its fiscal 2026 Q2 earnings on Sep 04th, 2025. The company delivered solid results, with revenue and earnings growing significantly. raised its full-year guidance and provided a cautious but optimistic outlook as it enters the next phase of transformation.

Sprinklr reported total revenue of $212.04 million in 2026 Q2, representing a 7.5% increase from $197.21 million in the same period the previous year. This reflects steady growth in the company's core offerings.

Earnings for the quarter showed even stronger momentum. The company's EPS surged by 400% to $0.05 in 2026 Q2 compared to $0.01 in 2025 Q2. Net income also experienced a dramatic increase, jumping to $12.62 million from $1.84 million in the prior-year quarter, a 585.2% rise. These results highlight a substantial improvement in profitability and indicate that Sprinklr's cost optimization and operational strategies are beginning to bear fruit. The significant increase in both EPS and net income suggests strong earnings performance.

Post-earnings, Sprinklr CEO Rory Read emphasized progress in the company's ongoing transformation, having completed Phase 1 with a focus on business optimization. He described the current phase as a "transition phase" extending into FY 2027, with strategic investments in AI acceleration, enhanced video capabilities, and in-region technical support. Read also highlighted the importance of Project Bearhug, which targets the top 700 customers—representing 80% of revenue—to reduce churn and improve customer satisfaction. Leadership hires in key areas of go-to-market and service execution are expected to strengthen the company’s execution. While challenges such as customer churn and operational consistency remain, Read expressed cautious optimism, noting, “We are making good progress but we still have more work to do.”

Sprinklr has provided updated guidance for Q3 FY 2026, forecasting total revenue between $209 million and $210 million, and subscription revenue between $186 million and $187 million—indicating 4% and 3% year-over-year growth, respectively. For the full fiscal year, the company raised its subscription revenue guidance to $746 million–$748 million and total revenue to $837 million–$839 million. It also expects non-GAAP operating income of $131 million–$133 million, translating to a 16% non-GAAP operating margin at the midpoint. Free cash flow is projected to remain at $125 million for the year, with some negativity in Q3 offset by recovery in Q4.

Additional News
In the week following Sprinklr’s earnings report, Nigeria’s business and political landscape saw several notable developments. The Punch Newspapers reported on growing political tensions as new parties surged in their attempt to register with the Independent National Electoral Commission (INEC). In Kaduna State, former Governor Nasir El-Rufai and six senior members of the African Democratic Congress (ADC) were summoned by the police over allegations of criminal conspiracy, highlighting the increasing scrutiny of political figures in the lead-up to the 2027 elections.

The nation also witnessed rising interest in tech-driven solutions, with reports indicating that UK executives met with Interswitch to explore fintech partnerships, while the Federal Government announced plans to leverage AI for economic growth targeting a $1 trillion economy. Meanwhile, in the education sector, the West African Examinations Council (WAEC) mandated 250 computers and CCTV systems in schools for the upcoming CBT exams, signaling a push toward modernization and improved oversight.

These developments reflect the broader economic and political dynamics shaping Nigeria’s landscape in the wake of major corporate announcements.

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