Sprinklr (CXM) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue grew 7% year-over-year to $219.5 million, with subscription revenue up 6% to $194.8 million and professional services revenue increasing 16% to $24.7 million.

• Free cash flow for Q1 was $65.8 million, representing a 30% margin, and net cash from operating activities was $70.4 million.

• Non-GAAP operating income reached $31.7 million (14% margin), while GAAP operating income was $10.6 million, reversing a prior-year loss.

• Remaining performance obligations (RPO) grew 10% year-over-year to $1.04 billion, with current RPO at $627.1 million.

• The company is in the second phase of its transformation, focusing on execution, customer-centricity, and AI-driven innovation, with improving renewal rates and customer engagement.

Financial highlights

• Subscription revenue for Q1 was $194.8 million, up 6% year-over-year; professional services revenue was $24.7 million.

• Non-GAAP gross margin was 66% (down from 70% a year ago), and subscription gross margin was 74%.

• Non-GAAP net income per diluted share was $0.11; GAAP net income per diluted share was $0.02.

• Operating margin (non-GAAP) for Q1 was 14%, down from 18% in the prior year.

• Cash, cash equivalents, and marketable securities totaled $442.8 million as of April 30, 2026.

Outlook and guidance

• Q2 FY27 revenue expected at $214–$215 million (1% year-over-year growth), with subscription revenue at $193.5–$194.5 million.

• Q2 non-GAAP operating income projected between $29.5 million and $30.5 million; non-GAAP net income per share of ~$0.10.

• Full-year FY27 revenue guided to $866.5–$868.5 million (1% growth), with subscription revenue at $779.5–$781.5 million.

• Full-year non-GAAP operating income expected at $139–$141 million (16% margin), and non-GAAP EPS at $0.48–$0.49.

• Free cash flow for FY27 estimated at $450 million.