Sprinklr (CXM) Q3 2026 earnings summary

Executive summary

• Q3 FY26 total revenue grew 9% year-over-year to $219.1 million, with subscription revenue up 5% to $190.3 million and professional services revenue up 43%.

• Non-GAAP operating income reached $33.5 million (15% margin), while GAAP operating income was $11.6 million; net income for the quarter was $2.9 million, down from $10.5 million due to higher tax provision.

• Free cash flow for Q3 was $15.5 million, with $126 million generated year-to-date; 145 customers generated over $1 million in annual revenue.

• Leadership changes included the appointment of a new CFO, Anthony Coletta, and a Chief Product & Corporate Strategy Officer.

• The company completed a $150 million share repurchase program during Q2 and Q3 FY26.

Financial highlights

• Q3 total revenue: $219.1 million, up 9% year-over-year; subscription revenue: $190.3 million, up 5%; professional services revenue: $28.8 million.

• Non-GAAP gross margin: 67% (subscription: 77%, professional services: 5%); GAAP gross margin: 66%.

• Non-GAAP net income per diluted share: $0.12; GAAP net income per diluted share: $0.01.

• Cash, cash equivalents, and marketable securities totaled $480.3 million at quarter-end; no significant debt.

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

Outlook and guidance

• Q4 FY26 revenue expected at $216.5M–$217.5M (7% YoY growth); subscription revenue $191M–$192M (5% YoY growth).

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

• FY26 total revenue guidance: $853M–$854M (7% YoY growth); subscription revenue $754M–$755M (5% YoY growth).

• FY26 non-GAAP operating income guidance: $137.5M–$138.5M (16% margin); non-GAAP net income per diluted share: $0.43–$0.44.

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