Sprinklr (NYSE:CXM) Issues Earnings Results, Beats Expectations By $0.01 EPS

Sprinklr (NYSE:CXM) posted its earnings results on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.01, FiscalAI reports. Sprinklr had a net margin of 3.29% and a return on equity of 8.13%. The business had revenue of $213.74 million for the quarter, compared to analyst estimates of $214.45 million. During the same period in the prior year, the company posted $0.13 EPS. The company’s revenue for the quarter was up .8% on a year-over-year basis. Sprinklr updated its FY 2027 guidance to 0.470-0.470 EPS and its Q3 2027 guidance to 0.110-0.110 EPS.

Here are the key takeaways from Sprinklr’s conference call:

• Q2 revenue growth remained modest: Total revenue increased 1% year over year to $213.7 million, while subscription revenue grew 3% to $194.8 million. Four enterprise deals exceeding $1 million in ARR and a 30% increase in completed sales transactions pointed to improving activity.
• Professional services weighed on results. Services revenue declined due to softness in managed services, while services gross margin fell to negative 22% because of partner cost overruns and regional execution issues; management expects another year-over-year decline in services revenue in Q3.
• Customer retention and contracted demand improved. Net dollar expansion was 102% overall and 112% among customers with more than $1 million in ARR, while total RPO rose 11% year over year to $1.03 billion, supported by larger renewals and contract terms of up to five years.
• AI adoption is gaining traction. Sprinklr reported more than 200 AI engagements, AI-native SKU ARR growth of 40%, and growing use of agentic AI and contact-center intelligence as enterprises consolidate point solutions onto its unified platform.
• Subscription guidance was raised, but total revenue was not. Full-year subscription revenue guidance increased to $782.5 million–$784.5 million, or 4% growth at the midpoint, while total revenue guidance remained at $866.5 million–$868.5 million because of a more conservative services outlook; the company also expects approximately $135 million in free cash flow and has $75 million remaining under its share-repurchase authorization.

Sprinklr Trading Down 8.3%

Shares of CXM stock opened at $6.97 on Thursday. Sprinklr has a twelve month low of $4.72 and a twelve month high of $8.49. The company’s 50-day moving average price is $6.34 and its 200-day moving average price is $5.79. The stock has a market cap of $1.63 billion, a price-to-earnings ratio of 58.10 and a beta of 0.65.

Key Stories Impacting Sprinklr

Here are the key news stories impacting Sprinklr this week:

• Positive Sentiment: Sprinklr reported fiscal Q2 2027 adjusted earnings of $0.11 per share, exceeding the $0.10 analyst consensus. Full-year EPS guidance of $0.47 is also above the $0.44 consensus, suggesting some support for profitability expectations. Sprinklr Q2 earnings report
• Positive Sentiment: The company forecast fiscal 2027 subscription revenue of approximately $782.5 million to $784.5 million, while maintaining full-year revenue guidance of $866.5 million to $868.5 million. The annual revenue range is broadly in line with estimates, indicating that management has not materially reduced its overall outlook. Sprinklr fiscal 2027 forecast
• Neutral Sentiment: Management highlighted services margins and continued investment in its platform, including artificial intelligence, as areas of focus. These investments could support longer-term product development but may pressure near-term margins and earnings.
• Negative Sentiment: Fiscal Q2 revenue of $213.74 million was slightly below the $214.45 million consensus and increased only 0.8% year over year. EPS also declined from $0.13 a year earlier, reinforcing concerns about decelerating growth. Sprinklr Q2 revenue and growth report
• Negative Sentiment: Third-quarter guidance calls for EPS of $0.11 and revenue of $215 million to $216 million, below analyst expectations of $0.12 and $216.3 million, respectively. The cautious near-term outlook appears to be the primary reason for the market’s negative reaction.
• Negative Sentiment: Analysts and commentary also questioned whether Sprinklr is generating meaningful incremental revenue from its AI offerings, citing slowing subscription and backlog growth, margin compression, and higher AI-related costs. Sprinklr AI analysis

Insider Activity at Sprinklr

In other Sprinklr news, insider Joy Corso sold 33,635 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $5.30, for a total value of $178,265.50. Following the transaction, the insider directly owned 1,175,616 shares in the company, valued at $6,230,764.80. The trade was a 2.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Jacob Scott sold 71,585 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $6.97, for a total transaction of $498,947.45. Following the sale, the general counsel owned 576,827 shares of the company’s stock, valued at $4,020,484.19. This represents a 11.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 395,880 shares of company stock valued at $2,210,116 over the last ninety days. Corporate insiders own 25.18% of the company’s stock.

Institutional Trading of Sprinklr

Hedge funds and other institutional investors have recently modified their holdings of the business. Morgan Stanley raised its holdings in Sprinklr by 3.5% in the 4th quarter. Morgan Stanley now owns 7,568,609 shares of the company’s stock valued at $58,884,000 after buying an additional 252,552 shares during the period. Geode Capital Management LLC boosted its stake in Sprinklr by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 2,722,671 shares of the company’s stock worth $21,187,000 after buying an additional 21,321 shares during the period. Federated Hermes Inc. boosted its stake in Sprinklr by 53.7% during the fourth quarter. Federated Hermes Inc. now owns 2,361,911 shares of the company’s stock worth $18,376,000 after buying an additional 824,782 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Sprinklr by 2.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,210,557 shares of the company’s stock valued at $17,199,000 after acquiring an additional 55,447 shares during the last quarter. Finally, Sea Cliff Partners Management LP increased its position in shares of Sprinklr by 1,174.6% during the second quarter. Sea Cliff Partners Management LP now owns 2,166,792 shares of the company’s stock valued at $18,331,000 after acquiring an additional 1,996,792 shares during the last quarter. 40.19% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

CXM has been the subject of a number of analyst reports. DA Davidson reduced their price target on Sprinklr from $6.25 to $6.00 and set a “neutral” rating for the company in a report on Thursday, June 4th. Citigroup decreased their target price on Sprinklr from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Thursday, June 4th. Rosenblatt Securities lowered their price target on Sprinklr from $12.00 to $8.50 and set a “buy” rating on the stock in a research note on Thursday, June 4th. Finally, Weiss Ratings upgraded Sprinklr from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Sprinklr presently has a consensus rating of “Hold” and a consensus price target of $7.75.

Sprinklr Company Profile

Sprinklr, Inc (NYSE: CXM) is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale.

Sprinklr’s platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities.