Summary
Sprinklr's second quarter fiscal 2026 revenue was $212.0 million, up 7.5% from the prior-year quarter. Gross profit was $144.6 million, up 1.0%. Gross margin was 68.2%, down 4.4 percentage points. GAAP operating income was $16.3 million, a swing to a profit from an operating loss in the prior-year quarter. Operating margin was 7.7%, up 7.7 percentage points. Net income was $12.6 million, up 585.2%. Diluted EPS was $0.05, up 400.0%. Non-GAAP operating income was $38.2 million, compared with $19.6 million a year earlier, and non-GAAP net income per diluted share was $0.13, compared with $0.08. Non-GAAP operating margin was 18%, compared with 10%. For the first six months of fiscal 2026, revenue was $417.5 million, up 6.2% from the prior-year period. Gross profit for the six months was $287.5 million, flat versus the prior-year period. Operating income for the six months was $14.5 million, up 158.2%. Net income for the six months was $11.0 million, down 11.4%. Diluted EPS for the six months was $0.04, flat with the prior-year period.
Cash generation was a bright spot. Operating cash flow was $34.8 million in the quarter, up 63.2% from the prior-year quarter. Capital expenditures were $0.36 million, down 75.4%. Free cash flow, a non-GAAP measure, was $29.8 million. For the six months, operating cash flow was $118.6 million, up 88.1%, and free cash flow was $110.5 million. Deferred revenue, current portion, was $395.1 million, up 8.7% from the prior-year quarter. Remaining performance obligations were $923.8 million, up 4.1%. Current RPO was $597.1 million. Cash, cash equivalents and marketable securities were $474.0 million as of July 31, 2025. The company repurchased 16,494,694 shares of Class A common stock for $140.4 million and then bought 1,121,854 more for $9.9 million, completing a $150 million authorization.
Large customer count reached 149 as of July 31, 2025, against 145 a year earlier. The press release said the count rose by 3 customers quarter over quarter. Net dollar expansion rate was 102.2% for the 12-month period ending July 31, 2025, down from 110.8%. Management tied the decline to elevated churn and down-selling of certain existing customers, partly from the macroeconomic environment. Sprinklr says it works with more than 1,900 enterprises. The company named Scott Millard Chief Revenue Officer effective September 22nd. CFO Manish Sarin will depart on September 19th.
Guidance for the third fiscal quarter ending October 31, 2025 includes non-GAAP operating income between $28.5 million and $29.5 million and non-GAAP net income per share of approximately $0.09, assuming 257 million diluted weighted-average shares outstanding. For the full fiscal year ending January 31, 2026, non-GAAP operating income is guided to between $131 million and $133 million and non-GAAP net income per share to between $0.42 and $0.43, assuming 266 million diluted weighted-average shares outstanding. The company also gave revenue guidance for both periods but did not reconcile its non-GAAP outlook to GAAP, citing the variability of stock-based compensation and other items. Management expects gross margin to fall in the near term on higher data and hosting costs plus higher service delivery costs. The main risks are elevated churn, a soft macro backdrop, and the CFO transition. A February 2025 workforce reduction touched 12% of employees, and restructuring work continues.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $212.0M | $205.5M | +3.2% | $197.2M | +7.5% |
| Gross profit | $144.6M | $142.9M | +1.2% | $142.9M | +1.2% |
| Gross margin | 68.2% | 69.5% | -1.3 pp | 72.5% | -4.3 pp |
| Research & development | $23.2M | $22.8M | +1.5% | $23.6M | -1.9% |
| Sales & marketing | $70.6M | $71.1M | -0.7% | $80.5M | -12.3% |
| General & administrative | $35.6M | $34.4M | +3.3% | $38.9M | -8.5% |
| Total operating expenses | $128.3M | $144.6M | -11.3% | $143.0M | -10.2% |
| Operating income (loss) | $16.3M | -$1.8M | +1027.2% | -$87.0K | +18803.4% |
| Operating margin | 7.7% | -0.8% | +8.5 pp | -0.0% | +7.7 pp |
| Net income (loss) | $12.6M | -$1.6M | +904.5% | $1.8M | +585.2% |
| Net margin | 6.0% | -0.8% | +6.7 pp | 0.9% | +5.0 pp |
| Diluted EPS | $0.05 | -$0.01 | +$0.06 | $0.01 | +$0.04 |
Risks
MD&A reports net dollar expansion rate declined to 102.2% for the trailing 12 months ended July 31, 2025 from 110.8% for the prior-year period, driven by elevated churn and down-selling of certain existing customers, partially due to the current macroeconomic environment. Risk factors also state customers may not renew subscriptions or may reduce subscription scope.
Gross margin fell to 68.2% in FY2026 Q2 from 72.6% in the prior-year quarter, down 4.4 percentage points, and MD&A expects gross margin to decline in the near term due to higher data and hosting costs plus higher service delivery costs. Subscription gross margin decreased four percentage points as third-party data, cloud and network infrastructure costs rose.
Risk factors state recent difficulties managing the implementation of certain larger CCaaS projects resulted in increased customer dissatisfaction, loss of certain customers and a delay in recognizing revenue on those projects. MD&A also attributes professional services gross margin timing to investment in CCaaS projects.
The filing includes extensive discussion that use of AI and generative AI may create operational, legal, reputational and competitive risks, including limited intellectual property protection for AI-generated works, security vulnerabilities in generated code, customer reluctance in regulated industries, and evolving laws such as the EU AI Act and Colorado AI Act. If competitors incorporate generative AI more successfully, the company may be impaired.
The company relies on negotiated agreements with social media networks and data providers, and the X agreement that supports the Unified-CXM platform expires on December 31, 2026. If it is not renewed on the same or similar terms or is terminated, the company may not be able to provide the same level of Unified-CXM insights and results may be materially adversely affected.
MD&A and risk factors cite inflation, interest rates, tariffs, the Russia-Ukraine and Israel-Hamas wars, and economic uncertainty that may slow enterprise IT spending, lengthen collection cycles, increase credit losses and lead customers to request concessions. The net dollar expansion rate decrease was partially driven by the current macroeconomic environment.
Risk factors state competition for executive, engineering, product, sales and other talent is high, and recent stock price decreases and market volatility have required additional equity awards and increased cash compensation to manage attrition. Such actions may be dilutive to stockholders and impact results of operations.
The company implemented a global workforce reduction in Q1 FY2026 impacting 12% of its workforce, with restructuring expense of $15.3 million for the six months ended July 31, 2025 versus $3.8 million in the prior-year period. Risk factors warn that failure to manage growth and organizational change could harm business and results of operations.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
RPO
cRPO
Non-GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Sprinklr, Inc.'s SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.