Sprinklr reported QQ1 2026 total revenue of $205.5 million, up 5% year over year, with subscription revenue of $184.1 million (+4% YoY). Non-GAAP operating income was $36.7 million, delivering an 18% margin, and free cash flow reached a record $80.7 million for the quarter. Management characterized FY2026 as a transitional year focused on transforming go-to-market, cost structure, and post-sales execution to lift long-term growth, customer retention, and expansion opportunities. The company also highlighted a strong pipeline, including seven-figure opportunities in CCaaS and a sizable HealthCore core, alongside 146 customers generating at least $1 million in annual subscription revenue (up 6% YoY). Sprinklr authorized a $150 million stock buyback to be completed by 6/30/2026, reflecting confidence in near-term cash generation. Despite encouraging gross margin stability (GAAP gross margin not explicitly provided; non-GAAP subscription gross margin at 78% and overall non-GAAP gross margin at 70%), the quarter faced renewal pressure and elevated churn dynamics driven by macro uncertainty and execution challenges from the prior period. The guidance contemplates continued investments in GTM and AI capabilities, with FY2026 subscription revenue projected to $741â$743 million and total revenue of $825â$827 million, implying mid-single-digit top-line growth and a 16-17% non-GAAP operating margin at the midpoint for the full year. Investors should monitor: (i) the pace and durability of the Bear Hug program across top customers, (ii) CAC/sales productivity improvements as pods scale, (iii) CCaaS platform maturation and service delivery robustness, (iv) FX headwinds and their offsetting cost-reduction initiatives, and (v) the trajectory toward a bend in the revenue and profitability path in H2 FY2026 and into FY2027.