Sprinklr, Inc. (CXM) reported fourth‑quarter 2026 results that surpassed analyst expectations, with total revenue of $220.6 million, up 9% year over year, and a non‑GAAP earnings per share of $0.13, beating the consensus estimate of $0.10. Subscription revenue rose 6% to $193.4 million, while professional services revenue reached $27.1 million, reflecting a 22% increase from the prior year.
The company’s subscription gross margin slipped 1 percentage point, from 77% in Q4 FY2025 to 76% in Q4 FY2026, largely due to higher third‑party data and cloud costs associated with expanding its Contact Center as a Service offering. Despite this compression, the net dollar expansion rate climbed to 103% from 102.2% a year earlier, indicating that existing customers are still increasing their spend and churn remains under control.
For fiscal 2027, Sprinklr guided total revenue of $869 million to $871 million and subscription revenue of $778 million to $780 million, while targeting a non‑GAAP operating margin of 16% for the full year. The company also reported free cash flow of $141.9 million and announced a $200 million stock repurchase program, underscoring confidence in its balance sheet.
Management highlighted the results as evidence of a successful transformation. "The fourth quarter capped a pivotal year in our transformation. We strengthened the quality of our customer engagements, advanced our innovation leadership, expanded operating margins, and delivered strong free cash flow," said President and CEO Rory Read. "As we enter the next year of our transformation, we will maintain this focus while staying diligent given recent macro events. We are confident in our strategy, improving execution, and the progress we expect ahead. With this momentum and our strong balance sheet, our Board has authorized a $200 million stock repurchase program, underscoring our commitment to delivering long‑term stockholder value," Read added. Chief Financial Officer Anthony Coletta noted, "This quarter marks another step forward and Q4 results came ahead of expectations. Total revenue was $220.6 million, up 9% year over year. Subscription revenue was $193.4 million, up 6% year over year."
The company’s AI‑native service SKUs saw a 50% year‑over‑year growth in annual recurring revenue, positioning it as a key driver of future expansion. Headwinds include higher data and hosting costs and a decline in the number of customers generating over $1 million in annual subscription revenue, which fell from 149 to 141 year‑over‑year. Nevertheless, the positive net dollar expansion rate and the EPS beat suggest that cost controls and pricing power are offsetting these challenges. The cautious guidance for FY2027 reflects management’s focus on maintaining profitability amid macro uncertainty while continuing to invest in AI capabilities.
Overall, Sprinklr’s Q4 performance demonstrates disciplined execution and a strengthening of its AI‑centric platform, while the forward guidance signals a deliberate shift toward sustainable growth and profitability in the coming year.
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