Sprinklr 2026 Q3 Earnings Revenue Beats Expectations as EPS Declines 75%

Sprinklr (CXM) reported Q3 2026 earnings on Dec 4, 2025, with revenue rising 9.2% to $219.07 million, exceeding estimates by $9.51 million. The company raised full-year guidance but missed EPS estimates, reporting $0.01 per share versus $0.09 expected.

Revenue

Sprinklr’s total revenue for Q3 2026 reached $219.07 million, driven by a 9.2% year-over-year increase. Subscription revenue, the company’s core segment, rose to $190.29 million, while professional services added $28.77 million. This performance reflects strong demand for its customer experience management platform, particularly in subscription-based solutions.

Earnings/Net Income

The company’s earnings per share (EPS) declined sharply to $0.01 in Q3 2026, a 75% drop from $0.04 in the prior-year period. Net income also fell to $2.90 million, down 72.2% from $10.46 million in 2025 Q3. The significant decline underscores ongoing operational challenges, including margin pressures and higher costs.

Post-Earnings Price Action Review

The strategy of buying CXM when it beats revenue and holding for 30 days underperformed the benchmark, delivering a -45.31% return compared to 52.45%. While the strategy showed no maximum drawdown, it exhibited high volatility (51.28%) and a negative Sharpe ratio (-0.27), indicating inconsistent performance. Investors should consider these risks before adopting similar tactics.

CEO Commentary

Rory Read, CEO, highlighted operational improvements, leadership additions (e.g., CFO Anthony Coletta), and progress in Project Bear Hug to strengthen customer relationships. He emphasized leveraging AI-native platforms for hyper-personalized experiences and transitioning to durable growth, despite challenges like renewal pressures and technical debt.

Guidance

Sprinklr guided Q4 2026 total revenue to $216.5–$217.5 million (7% YoY growth) and reaffirmed full-year 2026 revenue of $853–$854 million. The company also raised adjusted EPS guidance to $0.44 at the midpoint, reflecting confidence in long-term value creation.

Additional News

Sprinklr expanded its global partnership with SAMY to enhance social-first marketing services, leveraging real-time data for brands like Diageo. The CEO also announced leadership additions, including CFO Anthony Coletta and CPO Karthik Suri, to strengthen operational execution. Additionally, the company emphasized strategic investments in AI-native platforms to drive hyper-personalized customer experiences. These moves aim to solidify Sprinklr’s position in the competitive CXM market.

The stock price edged down 0.50% in the latest trading day but gained 9.57% weekly and 2.33% month-to-date. Analysts remain divided on valuation, with fair value estimates ranging from $7.79 to $12.20. Investors should monitor margin resilience and execution progress amid rising AI infrastructure costs.