Sprinklr (CXM) Q2 2027 earnings summary

Executive summary

• Q2 FY27 total revenue was $213.7 million, up 1% year-over-year, with subscription revenue growing 3% to $194.8 million, while professional services revenue declined.

• Trailing twelve months revenue reached $872.9 million, up 6% year-over-year, with subscription revenue at $773.4 million, up 5%.

• Non-GAAP operating income for Q2 was $31.3 million (15% margin); free cash flow was $13.1 million.

• Leadership changes included a new Chief Revenue Officer and Board member with AI expertise; notable customer wins and large enterprise deals were secured.

• Operations were impacted by the 2026 Iran conflict, causing disruptions and potential data loss in the Middle East.

Financial highlights

• Subscription revenue-based net dollar expansion rate was 102% in Q2; for the $1 million+ cohort, it was 112%.

• Total remaining performance obligations (RPO) reached $1.03 billion, up 11% year-over-year, with current RPO at $614 million, up 3%.

• Non-GAAP subscription gross margin was 74%; services gross margin was -22% to -25%; total non-GAAP gross margin was 66%.

• Cash, cash equivalents, and marketable securities stood at $452.9 million at quarter end.

• $125 million share repurchase completed; $75 million remains authorized under the $200 million program.

Outlook and guidance

• Q3 FY27 revenue expected at $215–$216 million, with subscription revenue of $196–$197 million (3% growth YoY); professional services revenue to decline.

• Q3 non-GAAP operating income projected at $33.5–$34.5 million; non-GAAP net income per diluted share at $0.11.

• FY27 subscription revenue guidance raised to $782.5–$784.5 million (4% growth YoY); total revenue guidance at $866.5–$868.5 million (1% growth YoY).

• FY27 non-GAAP operating income expected at $139–$141 million (16% margin); non-GAAP net income per diluted share at $0.47.

• Full-year free cash flow margin expected at 16%, or about $135 million.