Sprinklr (NYSE: CXM) reported fiscal second-quarter results for the period ending July 31, 2026, posting total revenue of $213.7 million, a 1% increase year over year. Subscription revenue came in at $194.8 million, up 3%, while professional services revenue declined sharply to $18.9 million with a negative gross margin of 22%.
On a trailing twelve-month basis, total revenue reached $872.9 million, up 6% year over year, with subscription revenue of $773.4 million reflecting 5% growth. Remaining performance obligations totaled $1.03 billion, up from $857.6 million in the third quarter of fiscal 2026, with current RPO for the next twelve months rising to $614.1 million from $562.2 million.
The company also highlighted its net dollar expansion rate at 102% overall and 112% among customers with more than $1 million in annual recurring revenue. Free cash flow generated in the quarter was $13.1 million, bringing first-half fiscal 2027 free cash flow to $79 million. Cash and marketable securities stood at $452.9 million following a $125 million accelerated share repurchase executed in the prior quarter.
Operating margin held steady at 15%, with subscription margin at 74%. Non-GAAP operating expenses as a percentage of revenue were 31% for sales and marketing, 11% for research and development, and 10% for general and administrative.
For the third quarter of fiscal 2027, Sprinklr guided subscription revenue of $196 million to $197 million, representing 3% growth at the midpoint, against total revenue of $215 million to $216 million, down 2% at the midpoint. Non-GAAP operating income was expected at $33.5 million to $34.5 million, and non-GAAP diluted net income per share approximately $0.11, down 8% at the midpoint.
The company raised its full-year fiscal 2027 subscription revenue outlook to $782.5 million to $784.5 million, implying 4% growth at the midpoint. Full-year total revenue is projected at $866.5 million to $868.5 million, or 1% growth. Non-GAAP operating income is expected at $139 million to $141 million, a 4% decline at the midpoint, with non-GAAP diluted net income per share estimated at approximately $0.47, also down 4%. Full-year free cash flow margin is targeted at roughly 16%, or about $135 million.
New customer additions during the quarter included Sony, Mazda, GoDaddy, ING, Navy Federal Credit Union, TransUnion, Dana-Farber Cancer Institute, Fanatics, and C3.ai. Sprinklr also received recognition from Gartner in its Magic Quadrant for Voice of the Customer Platforms (February 2026) and Social Media Marketing and Listening (July 2026), as well as an IDC MarketScape positioning for AI-Enabled Contact Center WEM Platforms (December 2025).
President and CEO Rory Read described the company as "firmly in the transition and execution phase," comparing the business trajectory to a soccer match at halftime with a one-nil lead. He emphasized that growing subscription revenue remained the key focus. CFO Anthony Coletta pointed to the RPO figure above $1 billion as evidence of the quality of contracted demand.
