Q2 FY2027
Filed Sep 2, 2026Q2 Total Revenue of $213.7 million, up 1% year-over-year; Q2 Subscription Revenue of $194.8 million, up 3% year-over-year
Subscription revenue grew 3% year-over-year and RPO grew 11%, but total revenue grew 1% and GAAP and non-GAAP operating income, margins, earnings per share, and free cash flow were below the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $213.7 million | – | up 1% year-over-year |
| Subscription revenueGAAP | $194.8 million | – | an increase of 3% year-over-year |
| Professional services revenueGAAP | $ 18,898 (in thousands) | – | – |
| Total cost of revenueGAAP | $ 74,552 (in thousands) | – | – |
| Gross profitGAAP | $ 139,191 (in thousands) | – | – |
| Gross marginGAAP | 65 % | – | – |
| Non-GAAP gross profitnon-GAAP | $ 140,798 (in thousands) | – | – |
| Non-GAAP gross marginnon-GAAP | 66 % | – | – |
| Research and development expenseGAAP | $ 24,434 (in thousands) | – | – |
| Sales and marketing expenseGAAP | $ 70,926 (in thousands) | – | – |
| General and administrative expenseGAAP | $ 34,302 (in thousands) | – | – |
| RestructuringGAAP | $ (428) (in thousands) | – | – |
| Total operating expensesGAAP | $ 129,234 (in thousands) | – | – |
| Operating incomeGAAP | $10.0 million | – | – |
| Operating marginGAAP | 5% | – | – |
| Non-GAAP operating incomenon-GAAP | $31.3 million | – | – |
| Non-GAAP operating marginnon-GAAP | 15% | – | – |
| Other income, netGAAP | $ 2,789 (in thousands) | – | – |
| Income before provision for income taxesGAAP | $ 12,746 (in thousands) | – | – |
| Provision for income taxesGAAP | $ 5,628 (in thousands) | – | – |
| Net incomeGAAP | $ 7,118 (in thousands) | – | – |
| Net income per share, dilutedGAAP | $0.03 | – | – |
| Non-GAAP net incomenon-GAAP | $ 25,225 (in thousands) | – | – |
| Non-GAAP net income per share, dilutednon-GAAP | $0.11 | – | – |
| Net cash provided by operating activitiesGAAP | $ 18,170 (in thousands) | – | – |
| Free cash flownon-GAAP | $ 13,118 (in thousands) | – | – |
| RPOother | $1.03 billion | – | up 11% |
| cRPOother | up 3% year-over-year | – | up 3% year-over-year |
| Cash, cash equivalents, and marketable securitiesother | $452.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionNot provided | $194.8 million | – | an increase of 3% year-over-year |
| Professional servicesNot provided | $ 18,898 (in thousands) | – | – |
third fiscal quarter ending October 31, 2026; full fiscal year ending January 31, 2027 outlook
- RevenueThird fiscal quarter total revenue between $215.0 million and $216.0 million; full fiscal year total revenue between $866.5 million and $868.5 million.
- NoteThird fiscal quarter subscription revenue between $196.0 million and $197.0 million.
- NoteThird fiscal quarter non-GAAP operating income between $33.5 million and $34.5 million.
- NoteThird fiscal quarter non-GAAP net income per share of approximately $0.11, assuming 239 million diluted weighted-average shares outstanding.
- NoteFull fiscal year subscription revenue between $782.5 million and $784.5 million.
- NoteFull fiscal year non-GAAP operating income between $139.0 million and $141.0 million.
- NoteFull fiscal year non-GAAP net income per share of approximately $0.47, assuming 240 million diluted weighted-average shares outstanding.
Capital returns
- Payments for repurchase of Class A common shares and related excise tax were $ 125,796 (in thousands) for the six months ended July 31, 2026.
- Treasury stock was — as of July 31, 2026, compared to $ (23,831) (in thousands) as of January 31, 2026.
What drove it
- Subscription revenue was $194.8 million, an increase of 3% year-over-year.
- RPO was $1.03 billion, up 11%, and cRPO was up 3% year-over-year.
- Rory Read cited AI innovation, new ARR growth, increasing enterprise adoption, and contracted demand underpinned by total RPO growth.
- The company stated that it typically experiences higher billings in the fourth quarter and higher collections of accounts receivable in the first half of the year.
Concerns
- Total revenue was up 1% year-over-year.
- Professional services revenue was $ 18,898 (in thousands), compared to $ 23,567 (in thousands) one year ago.
- GAAP operating income was $10.0 million, compared to $16.3 million one year ago, and GAAP operating margin was 5%, compared to 8%.
- Non-GAAP operating income was $31.3 million, compared to $38.2 million one year ago, and non-GAAP operating margin was 15%, compared to 18%.
- Free cash flow was $ 13,118 (in thousands), compared to $ 29,753 (in thousands) one year ago.
What to watch
- Execution against third fiscal quarter subscription revenue guidance between $196.0 million and $197.0 million.
- Execution against third fiscal quarter total revenue guidance between $215.0 million and $216.0 million.
- RPO and cRPO growth following reported growth of 11% and 3% year-over-year, respectively.
- Whether GAAP and non-GAAP operating margins improve from 5% and 15%, respectively.
- Full fiscal year execution against total revenue guidance between $866.5 million and $868.5 million and non-GAAP operating income guidance between $139.0 million and $141.0 million.
Balance sheet and cash flow
- Cash and cash equivalents were $ 231,415 (in thousands) as of July 31, 2026.
- Marketable securities were $ 221,488 (in thousands) as of July 31, 2026.
- Total cash, cash equivalents, and marketable securities were $452.9 million as of July 31, 2026.
- Total assets were $ 1,051,779 (in thousands) as of July 31, 2026.
- Total liabilities were $ 532,302 (in thousands) as of July 31, 2026.
- Total stockholders’ equity was $ 519,477 (in thousands) as of July 31, 2026.
- Net cash provided by operating activities was $ 88,546 (in thousands) for the six months ended July 31, 2026.
- Free cash flow was $ 78,933 (in thousands) for the six months ended July 31, 2026.
- Net cash used in financing activities was $ (122,406) (in thousands) for the six months ended July 31, 2026.
Analysis
Sprinklr reported second quarter fiscal 2027 total revenue of $213.7 million, up 1% year-over-year. Subscription revenue was $194.8 million, an increase of 3% year-over-year, while professional services revenue was $ 18,898 (in thousands), compared with $ 23,567 (in thousands) a year ago. The company reported RPO of $1.03 billion, up 11%, and cRPO growth of 3% year-over-year. Management identified AI innovation, new ARR growth, enterprise adoption, and contracted demand as business drivers.
Profitability was lower than the prior-year quarter. GAAP gross margin was 65%, compared with 68%, while non-GAAP gross margin was 66%, compared with 69%. GAAP operating income was $10.0 million and GAAP operating margin was 5%, versus $16.3 million and 8% one year ago. Non-GAAP operating income was $31.3 million and non-GAAP operating margin was 15%, versus $38.2 million and 18% one year ago. Net income was $ 7,118 (in thousands), and diluted GAAP EPS was $0.03, compared with $ 12,615 (in thousands) and $0.05 a year ago.
Cash generation also trailed the prior-year quarter. Net cash provided by operating activities was $ 18,170 (in thousands), compared with $ 34,791 (in thousands), and free cash flow was $ 13,118 (in thousands), compared with $ 29,753 (in thousands). Total cash, cash equivalents, and marketable securities were $452.9 million as of July 31, 2026. For the six months ended July 31, 2026, payments for repurchase of Class A common shares and related excise tax were $ 125,796 (in thousands).
For the third fiscal quarter ending October 31, 2026, Sprinklr guided to subscription revenue between $196.0 million and $197.0 million, total revenue between $215.0 million and $216.0 million, and non-GAAP operating income between $33.5 million and $34.5 million. Full fiscal year guidance calls for subscription revenue between $782.5 million and $784.5 million, total revenue between $866.5 million and $868.5 million, and non-GAAP operating income between $139.0 million and $141.0 million. The key reported tension is modest current revenue growth and lower year-over-year profitability alongside higher RPO and cRPO growth.
Management, verbatim
We delivered solid second quarter results and continued to strengthen the fundamentals of the business,
Rory Read, President and CEO of Sprinklr
We believe that the pace of our AI innovation, combined with new ARR growth, increasing enterprise adoption, and contracted demand underpinned by total RPO growth, demonstrate that we are making headway on our transformation and positioning Sprinklr for durable growth.
Rory Read, President and CEO of Sprinklr
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
- Quarter-over-quarter comparisons were not reported for revenue, profitability, cash flow, RPO, or cRPO.
- Debt balance was not reported.
- Dividend information was not reported.
- Absolute cRPO value was not reported.
- Guidance for gross margin, operating expenses, and tax rate was not reported.
- A reported driver for subscription revenue and professional services revenue was not separately provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.