Sprinklr (CXM) Q3 2026 earnings summary

Executive summary

• Q3 total revenue grew 9% year-over-year to $219.1M, with subscription revenue up 5% to $190.3M and professional services revenue up 43%.

• Non-GAAP operating income reached $33.5M (15% margin), while GAAP operating income was $11.6M; non-GAAP net income per diluted share was $0.12.

• Free cash flow for Q3 was $15.5M–$16M, with 145 customers generating over $1M in revenue.

• Leadership team strengthened with a new CFO and Chief Product/Strategy Officer; transformation and restructuring initiatives continue.

• Platform recognized as a leader in analyst reports (Forrester, Gartner), with major customer wins and expanded Project Bear Hug engagement.

Financial highlights

• Q3 total revenue: $219.1M; trailing twelve months revenue: $839.1M, up from $788.1M year-over-year.

• Subscription revenue: $744.96M for the last twelve months; professional services revenue was $28.8M in Q3.

• Non-GAAP gross margin for Q3 was 67%, with subscription gross margin at 77% and professional services gross margin at 2–5%.

• Free cash flow for the nine months ended October 31, 2025, was $126M, up from $57.6M in the prior year period.

• Cash and marketable securities totaled $480.3M, with no significant debt.

Outlook and guidance

• Q4 revenue expected at $216.5M–$217.5M (7% growth year-over-year); subscription revenue $191M–$192M.

• Q4 non-GAAP operating income expected at $29M–$30M; non-GAAP net income per diluted share $0.09–$0.10.

• FY26 total revenue guidance: $853M–$854M; subscription revenue $754M–$755M; non-GAAP operating income $137.5M–$138.5M; non-GAAP net income per share $0.43–$0.44.

• Full-year free cash flow estimate maintained at $125M, excluding restructuring costs.

• Detailed FY27 outlook to be provided next quarter.