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.