Sprinklr 2026 Q3 Earnings Revenue Beats Estimates, EPS Drops 75%

Sprinklr (CXM) reported Q3 2026 earnings on Dec 4, 2025, with revenue exceeding expectations but net income declining sharply. The company raised full-year revenue guidance, though EPS underperformed against prior-year results.

Revenue

Sprinklr’s total revenue grew 9.2% year-over-year to $219.07 million, driven by robust performance across segments. Subscription revenue, the company’s core offering, reached $190.29 million, reflecting steady demand for its AI-driven customer experience solutions. Professional services revenue added $28.77 million, underscoring strong client adoption of implementation and consulting services. This diversified revenue stream highlights the company’s ability to capitalize on enterprise digital transformation trends.

Earnings/Net Income

The company’s net income plummeted 72.2% to $2.90 million in Q3 2026, down from $10.46 million in Q3 2025. Earnings per share (EPS) fell 75% to $0.01, a stark contrast to the $0.04 reported in the prior-year period. The decline reflects increased operational costs and strategic investments in AI infrastructure, which pressured profitability despite top-line growth.

Post-Earnings Price Action Review

A strategy of purchasing CXM shares when revenue beats expectations and holding for 30 days yielded a -45.31% return, far underperforming the benchmark’s 52.45%. The approach exhibited extreme volatility (51.28%) and a negative Sharpe ratio (-0.27), signaling inconsistent performance and elevated risk. While the strategy avoided significant drawdowns during the backtest period, its poor returns highlight the challenges of relying on revenue beats alone for investment decisions in this volatile stock.

CEO Commentary

Rory Read, Sprinklr’s CEO, emphasized progress in its AI-driven customer experience transformation during the earnings call. He highlighted the expanded partnership with SAMY, which integrates real-time social data into actionable insights for global brands like Diageo. Read also noted leadership additions, including CFO Anthony Coletta and CTO Karthik Suri, as strategic moves to strengthen execution. However, he acknowledged ongoing margin pressures from rising AI infrastructure costs, cautioning that profitability improvements will require time.

Guidance

Sprinklr provided Q4 2026 revenue guidance of $216.5–217.5 million, with subscription revenue projected at $191–192 million. For the full fiscal year, the company expects total revenue of $853–854 million and non-GAAP net income per share of $0.43–0.44. These figures align with its long-term AI-driven growth strategy but reflect cautious optimism amid competitive pressures and cost challenges.

Additional News

Sprinklr announced an expanded global partnership with SAMY to enhance real-time social data analytics for brands, a key differentiator in its AI-powered customer engagement strategy. The company also welcomed Anthony Coletta as CFO and Karthik Suri as CTO, signaling a strategic pivot toward financial discipline and technological innovation. Additionally, Sprinklr raised full-year 2026 revenue guidance to $853–854 million, citing stronger-than-expected adoption of its Unified-CXM platform. These moves aim to solidify its position in the customer experience software market despite intensifying competition.