Sprinklr reported third‑quarter fiscal 2026 results that exceeded expectations, with total revenue of $219.1 million, up 9% from $200.7 million a year earlier, and subscription revenue of $190.3 million, up 5% from $180.6 million. Non‑GAAP earnings per share of $0.12 beat the consensus estimate of $0.09, a $0.03 or 33% beat.
Non‑GAAP operating income rose to $33.5 million, giving an operating margin of 15%, up from 11% in the same quarter last year and 18% in the prior quarter. The margin expansion reflects a higher mix of high‑margin AI‑native platform contracts and disciplined cost control, offsetting modest increases in support‑service expenses.
For the fourth quarter ending January 31 2026, Sprinklr guided total revenue of $216.5 million to $217.5 million and subscription revenue of $191 million to $192 million, a lift from the previous guidance of $205 million to $206 million. Full‑year guidance was raised to total revenue of $853 million to $854 million and subscription revenue of $754 million to $755 million, up from $825 million to $827 million, and non‑GAAP operating income of $137.5 million to $138.5 million, compared with $129 million to $131 million. The upward revisions signal management confidence in sustained demand for its AI‑driven customer experience platform.
The results were driven by continued growth in Sprinklr’s core subscription business, supported by the rollout of its Copilot and AI Agent capabilities, which have attracted new enterprise customers and deepened usage among existing accounts. Cost optimization initiatives under the “Project BearHug” transformation have reduced operating expenses, while the company’s focus on high‑margin verticals has improved the revenue mix. Headwinds include modest pricing pressure in legacy support services and the need to invest in next‑generation AI features, but the company’s scale and customer base mitigate these risks.
Investors reacted positively to the earnings beat and the higher guidance, with analysts highlighting the company’s ability to generate strong cash flow from its subscription model and the strategic momentum behind its AI platform. The market’s enthusiasm reflects confidence that Sprinklr can continue to expand its addressable market while maintaining profitability.
Looking ahead, Sprinklr plans to accelerate the deployment of its AI‑native platform across its customer base, deepen integration with major cloud providers, and pursue selective acquisitions that complement its core capabilities. The company’s guidance and margin trajectory suggest a solid path toward achieving its Rule of 40 target and sustaining long‑term growth.
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