Sprinklr 2026 Q3 Earnings Revenue Growth of 9.2% Amid 72.2% Net Income Decline

Sprinklr (CXM) reported Q3 2026 earnings on Dec 4, 2025, with revenue exceeding estimates by 9.2% to $219.07 million. The company raised full-year guidance, projecting $853–854 million in revenue. However, EPS fell sharply to $0.01, down 75% year-over-year, reflecting ongoing margin pressures.

Revenue

Sprinklr’s total revenue grew 9.2% year-over-year to $219.07 million, driven by robust performance across segments. Subscription revenue rose to $190.29 million, reflecting 5% year-over-year growth, while professional services contributed $28.77 million. The results underscore the company’s ability to maintain steady revenue despite broader market challenges.

Earnings/Net Income

The company’s earnings per share (EPS) declined 75% to $0.01 in Q3 2026, a stark contrast to $0.04 in the prior-year period. Net income also dropped to $2.90 million, a 72.2% decrease from $10.46 million in 2025 Q3. The sharp decline highlights ongoing challenges in balancing growth investments with profitability.

Post-Earnings Price Action Review

The strategy of buying CXM when it beats revenue and holding for 30 days underperformed, delivering a -45.31% return versus a 52.45% benchmark gain. While the strategy avoided significant drawdowns (0.00% maximum), it exhibited high volatility (51.28%) and a negative Sharpe ratio (-0.27), underscoring its inconsistent performance and elevated risk profile.

CEO Commentary

CEO Rory Read emphasized progress in executing “Project Bear Hug” to strengthen relationships with top 700 customers (80% of revenue) and leveraging AI-native platforms for data-driven engagement. Leadership changes, including CFO Anthony Coletta and Chief Product Officer Karthik Suri, were highlighted as critical to scaling operations. Read acknowledged operational hurdles but expressed confidence in long-term growth through innovation and customer retention.

Guidance

Sprinklr guided Q4 2026 revenue of $216.5M–$217.5M (7% YoY growth) and full-year total revenue of $853M–$854M. Subscription revenue is projected at $754M–$755M, with non-GAAP operating income expected at $137.5M–$138.5M (16% margin). The company plans to maintain AI and R&D investments while targeting $125M in free cash flow (excluding restructuring costs).

Additional News

Sprinklr expanded its partnership with SAMY to enhance AI-driven customer insights, including a joint initiative for Diageo. Recent leadership changes, including CFO Anthony Coletta and CPO Karthik Suri, were framed as pivotal to operational scaling. The company also announced a strategic focus on improving customer retention via “Project Bear Hug,” targeting its top 700 clients.

The stock’s mixed performance post-earnings and management’s cautious optimism reflect the broader challenges of balancing growth investments with margin preservation. Analysts remain divided on the stock’s valuation, with some highlighting AI-driven innovation potential and others cautioning about margin pressures.