"BearHug is focused on deeply engaging our top 700 customers who collectively represent more than 80% of our total revenue."
— Rory Read
03Detailed Report
CXM
Company CXM
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Sprinklr delivered solid QQ2 2026 results with total revenue of $212.0 million, up 8% year over year, and subscription revenue of $188.5 million, up 6% year over year. Non-GAAP operating income reached a quarterly record of $38.2 million, translating to an 18% margin, and the company generated $29.8 million of reported free cash flow (about $31 million after restructuring cash payments). The quarter underscored ongoing transformation: phase one completed, now transitioning into phase two (transition phase) with targeted investments in AI functionality, expanded channels, and in-region capabilities to accelerate long-run growth. BearHug, Sprinklr’s top-down churn remediation initiative focused on its top-700 customers (accounting for more than 80% of revenue), is delivering early progress as management emphasizes deeper, ongoing customer engagement to lift renewals and stickiness. Management signalled a prudent path to a bend in the revenue trajectory in the back half of FY26 into FY27, contingent on successful execution of the transformation, discipline in cost management, and continued AI-enabled product adoption. FY26 guidance was raised modestly: full-year revenue guidance of $837–$839 million (midpoint +5% YoY), subscription revenue of $746–$748 million (4% YoY), and non-GAAP operating income of $131–$133 million (about 16% non-GAAP operating margin at the midpoint), with a projected free cash flow of roughly $125 million. The quarter also highlighted near-term gross margin pressure from cloud hosting costs tied to AI initiatives and a shift in professional services margins as the company scales its AI-enabled services and CCaaS deployments. Sprinklr’s balance sheet remains conservatively leveraged, with approximately $474 million of cash and marketable securities and no debt, alongside a refreshed leadership slate designed to accelerate execution.
Key Performance Indicators
Revenue
Increasing
212.04M
QoQ: 3.18% | YoY: 7.52%
Gross Profit
Increasing
144.60M
68.20% margin
QoQ: 1.21% | YoY: 1.20%
Operating Income
Increasing
16.27M
QoQ: 1 027.18% | YoY: 18 803.45%
Net Income
Increasing
12.62M
QoQ: 904.53% | YoY: 585.23%
EPS
Increasing
0.05
QoQ: 919.67% | YoY: 604.23%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability fundamentals:
- Total revenue: $212.04 million, up 8% YoY; subscription revenue: $188.5 million, up 6% YoY; implied non-GAAP gross margin (total) 69%; subscription gross margin 78%; professional services gross margin (non-GAAP) modeled as breakeven, implying pressure on overall gross margin from AI/cloud costs.
- Non-GAAP operating income: $38.2 million, 18.0% margin. Non-GAAP net income per diluted share: $0.13.
- Net cash/position: cash and marketable securities $474 million; no debt; net debt disclosed as negative, signaling a net cash position.
- Operating cash flow and free cash flow: Operating cash flow (reported) not stated in the summary, but free cash flow was $29.8 million reported and about $31.0 million after restructuring payments in Q2. For H1 FY26, free cash flow was $123.5 million ex-restructuring charges; full-year free cash flow guidance is $125 million.
- Share repurchase: 16.5 million shares purchased for $140.4 million in Q2; by early August, Sprinklr completed the full $150 million authorization (17.6 million shares to be returned to the reserve).
- Customer metrics: 149 customers generating at least $1 million in annual subscription revenue (up 3 sequentially); seven-figure cohort revenue continued to grow on a trailing-12-month basis; calculated billings for Q2 were $200.6 million, up 4% YoY.
- Backlog/backlog-like metric: RPO as of 7/31/2025 was $923.8 million, up 4% YoY. Current RPO (CRPO) was $597.1 million, up 7% YoY.
- Guidance highlights: Q3 revenueGUIDE $209–$210 million (about +4% YoY), subscription $186–$187 million (about +3% YoY), professional services approx. $23 million (up 15% YoY) with professional services gross margin around -3%; Q3 non-GAAP operating income guidance $28.5–$29.5 million (~14% non-GAAP op margin). Full-year FY26 targets: revenue $837–$839 million (~5% YoY), subscription $746–$748 million (~4%), non-GAAP net income per diluted share $0.42–$0.43, with an estimated 266 million diluted shares; expected ~26% effective tax rate on non-GAAP PBT; FCF around $125 million (slightly negative in Q3, stronger in Q4).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
212.04M
7.52%
3.18%
Gross Profit
144.60M
1.20%
1.21%
Operating Income
16.27M
18 803.45%
1 027.18%
Net Income
12.62M
585.23%
904.53%
EPS
0.05
604.23%
919.67%
Key Financial Ratios
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