Sprinklr 2026 Q3 Earnings Revenue Beats Expectations, EPS Plummets 75%

Sprinklr reported Q3 2026 results with revenue exceeding estimates and raised full-year guidance, though earnings declined sharply. The stock edged lower post-earnings, with a high-risk trading strategy underperforming benchmarks.

Sprinklr’s total revenue grew 9.2% year-over-year to $219.07 million, surpassing expectations. Subscription revenue accounted for the bulk at $190.29 million, while professional services contributed an additional $28.77 million. The 5% growth in subscription revenue reflects ongoing demand for its AI-driven customer experience platform.

Earnings per share (EPS) fell to $0.01 in Q3 2026, a 75% decline from $0.04 in the prior-year period. Net income also dropped 72.2% to $2.90 million. The sharp EPS contraction highlights underlying profitability challenges despite revenue momentum.

Post-earnings trading revealed mixed signals. A strategy of buying CXM after revenue beats and holding for 30 days yielded -45.31%, lagging the 52.45% benchmark return. While the strategy showed no maximum drawdown, its volatility of 51.28% and negative Sharpe ratio (-0.27) underscored inconsistent performance.

CEO Rory Read emphasized progress in operational improvements and leadership changes, including a new CFO and CPO. The company’s “Project Bear Hug” aims to deepen customer retention, while AI investments target hyper-personalized experiences.

Sprinklr raised full-year 2026 subscription revenue guidance to $754–755 million (5% growth) and total revenue to $853–854 million (7% growth). Non-GAAP operating margin is projected at 16%, with free cash flow guidance of $125 million (excluding restructuring costs).

Additional News

Sprinklr expanded its global partnership with SAMY to enhance social-first marketing solutions for brands like Diageo. The collaboration leverages real-time social data to drive actionable insights, aligning with the company’s AI-native platform strategy. Leadership changes, including a new CFO and Chief Product Officer, signal a focus on operational efficiency. Additionally, the “Project Bear Hug” initiative aims to improve customer retention and renewal rates, addressing multi-year renewal pressures.

Sprinklr’s Q3 results highlight a mixed performance: revenue growth and guidance optimism contrasted with sharp EPS declines. The company’s strategic bets on AI and operational reforms will be critical in sustaining momentum.

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