Sprinklr Tops Q3 Expectations With Strong Revenue and EPS Growth

Sprinklr (NYSE: CXM) has announced its financial results for the third quarter of fiscal 2026, showcasing a robust performance that surpasses market expectations. The company’s earnings per share (EPS) and revenue both exceeded projected figures, indicating a solid position in the market.

Q3 Revenue Hits $219.1M and EPS Tops Expectations at $0.12

Sprinklr has demonstrated a commendable performance in the third quarter of fiscal 2026, with total revenue reaching $219.1 million, marking a 9% increase from the previous year. This figure surpasses the anticipated revenue of $209.56 million, indicating a positive trajectory in the company’s financial health. The subscription revenue also saw a 5% rise year-over-year, amounting to $190.3 million, further highlighting the company’s ability to maintain and grow its customer base.

In terms of earnings per share (EPS), Sprinklr reported a non-GAAP EPS of $0.12, exceeding the expected $0.09. This EPS beat reflects the company’s effective cost management and operational efficiency, as well as its strategic initiatives to enhance customer engagement and satisfaction. The GAAP operating income increased to $11.6 million from $7.9 million in the same quarter last year, while non-GAAP operating income reached $33.5 million, up from $23.0 million.

The company’s financial performance is also reflected in its cash flow metrics. Sprinklr reported a net cash flow from operating activities of $20.0 million and a free cash flow of $15.5 million, underscoring its strong liquidity position. This financial strength positions Sprinklr well to continue investing in growth opportunities and maintaining its competitive edge in the customer experience management industry.

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Full-Year Revenue Expected to Reach Up to $854M With Strong Profitability

Looking forward, Sprinklr has provided optimistic guidance for the fourth fiscal quarter ending January 31, 2026. The company anticipates subscription revenue to range between $191 million and $192 million, with total revenue expected to fall between $216.5 million and $217.5 million. This guidance suggests a slight decrease from the current quarter’s results but remains in line with the company’s strategic goals and market conditions.

For the full fiscal year ending January 31, 2026, Sprinklr projects subscription revenue between $754 million and $755 million and total revenue between $853 million and $854 million. The company also forecasts a non-GAAP operating income of $137.5 million to $138.5 million, with a non-GAAP net income per share ranging from $0.43 to $0.44. These projections indicate Sprinklr’s confidence in sustaining its growth trajectory and its ability to navigate potential market fluctuations.

Sprinklr’s forward-looking statements reflect a strategic focus on enhancing its platform and expanding its customer base. The company remains committed to leveraging its AI-native platform to deliver exceptional customer experiences, which is crucial in maintaining its market leadership. As Sprinklr continues to innovate and adapt to evolving industry demands, it is well-positioned to achieve its long-term financial and operational objectives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.