Sprinklr, Inc. provides enterprise cloud software products worldwide. Its Unified Customer Experience Management platform helps customer-facing teams collaborate across internal silos, communicate over digital and traditional channels, and use AI to deliver customer experiences. The company offers Sprinklr Service, Sprinklr Social, Sprinklr Insights, and Sprinklr Marketing, along with professional, implementation, managed, training, consultancy, and coaching services. It has a strategic partnership with SocialEdge, Inc. and was founded in 2009, headquartered in New York, New York.
Sprinklr reported second-quarter fiscal 2027 revenue of $213.7 million, up 1% year-over-year, with subscription revenue growing 3% to $194.8 million, while net annual recurring revenue (NAR) grew more than 50% year-over-year. The company posted non-GAAP operating income of $31.3 million, a 15% margin, and non-GAAP net income of $0.11 per diluted share. CEO Rory Read noted that professional services revenue was lower than expected due to softness in managed services and execution challenges, leading him to take interim leadership of the services organization. Sprinklr raised its full-year subscription revenue guidance to $782.5 million to $784.5 million, representing 4% growth at the midpoint, while reaffirming total revenue guidance of $866.5 million to $868.5 million. The company also highlighted a 5-year strategic agreement valued at well over $20 million with a major sports betting and gaming company, and the completion of its $125 million accelerated share repurchase.
Sprinklr reported quarterly earnings of $0.11 per share, surpassing the Zacks Consensus Estimate of $0.10, though down from $0.13 a year ago. Revenue for the quarter ended July 2026 came in at $213.74 million, slightly missing the consensus estimate by 0.36% but up from $212.04 million in the prior year. The company has beaten EPS estimates in each of the last four quarters. Sprinklr shares have declined about 2.3% year-to-date, underperforming the S&P 500's gain of 11.5%. The stock currently holds a Zacks Rank #3 (Hold), with analysts expecting $0.13 per share on $216.35 million in revenue for the next quarter and $0.49 per share on $868.37 million for the fiscal year.
Enterprise Software Stocks Surge on AI-Driven Earnings
Shares of enterprise software companies, including Amplitude, GitLab, Doximity, Freshworks, and Sprinklr, soared in afternoon trading after quarterly earnings and upbeat commentary indicated that artificial intelligence is boosting software adoption rather than disrupting legacy models. The sector-wide rally was fueled by strong results from Salesforce, CrowdStrike, and Okta, with Salesforce's AI-powered Agentforce reaching $1.5 billion in annual recurring revenue and Slackbot surpassing 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta reported that AI-focused offerings drove about 30% of new bookings and increased average contract values by roughly 40%. Amplitude jumped 9.4%, GitLab rose 8%, Doximity gained 3.3%, Freshworks climbed 5.4%, and Sprinklr advanced 7.2%, with Salesforce surging 20%.
Sprinklr Appoints Microsoft Search and AI President Jordi Ribas to Board
Sprinklr has appointed Jordi Ribas, President of Search and AI at Microsoft, to its Board of Directors effective August 17, 2026. Ribas has been with Microsoft for more than 26 years and currently leads product, engineering, and growth teams for Microsoft Bing and the Web IQ search engine for agents. He and his team launched the original Copilot at Microsoft, which was foundational for the new era of generative AI at the company. Sprinklr Founder and Chairman Ragy Thomas said Ribas's experience leading innovation at a global scale and his perspective on the future of intelligent experiences will be invaluable as the company enters its next phase of growth and innovation.
Sprinklr Q1 Revenue Beats Estimates but EPS Guidance Disappoints
Sprinklr reported first-quarter revenues of $219.5 million, up 6.8% year on year and exceeding analysts' expectations by 1.7%. Despite the top-line beat, the company's EPS guidance for the next quarter missed analysts' expectations significantly, while full-year revenue guidance met expectations. The stock has risen 3.8% since the report and currently trades at $5.83. Among the 18 sales and marketing software stocks tracked, the group overall beat revenue estimates by 2% and saw share prices rise an average of 39.2% since their latest earnings results.
Sprinklr's stock has fallen 19.5% over the past six months to $5.74, underperforming the S&P 500's 9.4% gain, and analysts recommend avoiding the shares. Billings reached $212.5 million in Q1, but year-on-year growth averaged just 5.3% over the last four quarters, signaling soft demand and competitive pressures. Revenue growth is expected to stall over the next 12 months, a sharp deceleration from the 16.6% annualized pace of the past five years. While GAAP operating margin improved by 4 percentage points over two years to 6%, the stock trades at 1.5 times forward price-to-sales, offering limited upside relative to downside risk.
Palantir Technologies highlighted as cash-heavy stock with impressive fundamentals, while Sprinklr and News Corp face challenges
StockStory identifies Palantir Technologies as a cash-heavy stock with impressive fundamentals, citing average billings growth of 67.6% over the last year and a robust free cash flow margin of 54.1%. The company holds a net cash position of $7.77 billion, representing 2.5% of its market cap. In contrast, Sprinklr and News Corp are flagged as facing challenges. Sprinklr has a net cash position of $399 million, or 31.7% of its market cap, but its average billings growth was only 5.3% over the last year and projected sales are flat. News Corp holds a net cash position of $96 million, just 0.6% of its market cap, with flat sales over the last five years and a poor free cash flow margin of 7.1%.
Sprinklr Stock May Have 45.7% Upside Based on Analyst Price Targets
Sprinklr closed at $5.41, and the average analyst price target of $7.88 suggests a potential upside of 45.7%. The mean target is based on eight short-term estimates ranging from $6.00 to $12.00, with a standard deviation of $2.4. Analysts have also been raising earnings estimates, with three upward revisions in the past 30 days and no negative revisions, pushing the Zacks Consensus Estimate up 4.6%. The stock currently carries a Zacks Rank #2, or Buy, which places it in the top 20% of over 4,000 ranked stocks.
Sprinklr has appointed Thomas Addis as its new Chief Revenue Officer, effective immediately. Addis will report to President and CEO Rory Read and brings over two decades of revenue leadership experience from companies including Bazaarvoice, Kinetica, Box, and Salesforce. At Bazaarvoice, he served as President and CRO and helped nearly double company revenue through an AI-driven model. Sprinklr is an AI-native platform for Unified Customer Experience Management, serving over 1,600 enterprises including Microsoft, P&G, and Samsung.
Paycom, Adobe, and Sprinklr Shares Fall After Fed Signals Rate Hikes
Shares of Paycom, Adobe, and Sprinklr each fell 4.1% after the Federal Reserve held its benchmark rate at 3.5%–3.75% and released a dot plot that removed expectations of a 2026 rate cut, instead introducing the possibility of a hike. The median year-end rate estimate rose to 3.8%, and the 2-year Treasury yield climbed 11 basis points to 4.161%, reducing the present value of future cash flows for software companies that are priced on earnings years into the future. Paycom, trading at $123.80 per share, is down 18.8% year-to-date and sits 48.8% below its 52-week high of $241.73 from June 2025.
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PAYC · Monetary · Negative Fed signals possible rate hike, raising discount rates and lowering present value of future cash flows for software companies like Paycom.