Sprinklr reported strong financial results for its second fiscal quarter ended July 31, 2025, with total revenue reaching $212 million, an 8% increase year-over-year, surpassing both guidance and consensus estimates. Subscription revenue grew by 6% year-over-year, while professional services revenue saw a 22% increase.
The company maintained a non-GAAP operating margin of 18% and reported cash flow that exceeded expectations. Sprinklr also raised its full fiscal year 2026 revenue forecast to $838 million, up from $826 million, and increased its adjusted EPS estimate to $0.43, from $0.40.
In a significant leadership development, CFO Manish Sarin's upcoming departure was announced, with CEO Rory Read stepping in as interim CFO. Additionally, Scott Millard will join Sprinklr as Chief Revenue Officer, effective September 22, 2025, to bolster go-to-market efforts.
Despite the strong financial performance and raised guidance, analyst commentary highlighted investor unease over the executive transitions and ongoing customer churn pressures. The company's 'Project Bear Hug' initiative, aimed at deepening engagement with top accounts, is showing progress in addressing customer relationships.
The company's operating income for the second quarter was $38.2 million, resulting in an 18% margin, which exceeded estimates. While near-term margins may face pressure from investments in AI and R&D, the stronger-than-expected revenue supports the raised full-year EPS outlook.
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