Sprinklr (CXM) Q4 2026 Earnings Transcript
Sprinklr reported Q4 FY2026 revenue of $220.6M (+9% YoY) and subscription revenue of $193.4M (+6%). Non-GAAP operating income was $37.7M (17% margin) and free cash flow $15.9M. Renewal rates were the highest of FY2026; RPO was $986.5M. Q1 guidance: revenue $215.5M–$216.5M; FY2027 revenue $869M–$871M. A $200M share buyback was authorized.
How this was made
The 30-second read
Why it matters
CXM’s forward guidance (Q1 revenue and FY27 subscription/operating income/FCF) combined with a new $200M accelerated repurchase and strong renewal rates can drive re-rating, while services delivery investment and higher churn/data costs are key downside checks.
Market read
Fresh Q1 and FY27 guidance, AI-native ARR growth, and buyback authorization are likely the main drivers for trading positioning, with services margin pressure and churn/customer concentration as the main risks.
What to watch
Professional services revenue is guided to decline sequentially with negative-to-breakeven margins, and higher data/hosting costs are explicitly cited—watch whether AI growth sustains without margin deterioration.
Background
The piece is a Q4 FY2026 earnings transcript covering revenue/margins, renewal and expansion metrics, remaining performance obligations, and forward guidance including FY27.
Ticker impact
Sprinklr’s Q4/FY results and Q1/FY27 guidance (revenue, margins, FCF) plus a new $200M buyback directly impact CXM’s valuation and trading setup.
Likely positive bias for near-term trading on guidance/FCF and AI ARR growth, tempered by services margin and customer concentration/churn commentary.
The article provides concrete Q1 and FY27 guidance, renewal/expansion metrics, and a fresh buyback authorization; it also flags professional services gross margin ~1% and slightly negative-to-breakeven outlook plus higher churn and customer cohort decline.
Market effects
Reinforces that CXM-style CXM/CCaaS vendors are monetizing AI-native modules while still facing delivery-cost pressure in services.
Middle East described as resilient but macro-fluid; could affect sentiment toward vendors with meaningful regional exposure.
AI agent/contact-center intelligence demand narrative may support peer sentiment, though this is company-specific guidance.
Counterpoint
Customer count in the $1M+ cohort fell to 141 and churn was higher than preferred; services gross margin near 1% suggests profitability may be more fragile than headline operating income implies.
Key entities
- companySprinklr
Reports Q4/FY2026 results, renewal/expansion metrics, and issues Q1 and FY2027 guidance plus a new $200M buyback.
- executiveRory Read
CEO commentary on churn, renewal improvements, and macro/geopolitical fluidity.
- executiveAnthony Coletta
CFO commentary on customer cohort decline and higher data/hosting costs.
