Sprinklr, Inc. (CXM) delivered a solid earnings beat on Wednesday, and investors responded enthusiastically to both the numbers and the raised outlook. The company, which provides software-as-a-service customer experience management platforms, posted fiscal third-quarter 2026 results that handily exceeded Wall Street's expectations.
The headline figures tell a pretty clear story. Revenue came in at $219.1 million, representing 9% year-over-year growth and comfortably beating the analyst consensus of $209.2 million. Adjusted earnings per share of 12 cents surpassed estimates of 9 cents, showing the company is managing to expand profitability while growing its top line.
Breaking Down the Numbers
Subscription revenue, the lifeblood of any SaaS business, increased 5.0% year-over-year to $190.3 million. The metrics around future revenue showed mixed signals: remaining performance obligations (RPO) declined 5%, but current RPO—which represents revenue expected in the next 12 months—rose 3%.
The real standout was operating leverage. Adjusted operating income jumped to $33.5 million from $23.0 million a year earlier, with margins expanding to 15% from 11% in the prior-year quarter. That's the kind of improvement investors in SaaS companies love to see.
Sprinklr generated operating cash flow of $20 million for the quarter and free cash flow of $15.5 million. The balance sheet remains healthy with $480.3 million in cash, cash equivalents, and marketable securities as of October 31, 2025.
CEO Rory Read sounded cautiously optimistic, noting that "the improving quality of customer engagements encourages the team to finish the year with the momentum needed to build a strong foundation for fiscal 2027, even as more work remains."
Guidance Gets a Boost
Here's where things get interesting. Sprinklr raised its full-year fiscal 2026 revenue outlook to $853-$854 million, up from a previous forecast of $837-$839 million. That compares favorably to the consensus estimate of $837.5 million. The company also bumped subscription revenue guidance to $754-$755 million from $746-$748 million.
On the earnings side, adjusted EPS guidance increased to 43-44 cents from 42-43 cents, slightly ahead of the 43-cent consensus estimate.
For the fourth quarter specifically, Sprinklr expects revenue of $216.5-$217.5 million versus analyst estimates of $210.5 million—another meaningful beat if the company delivers. Quarterly adjusted EPS is projected at 9-10 cents compared to the street view of 9 cents, with subscription revenue anticipated at $191-$192 million.
CXM Price Action: Sprinklr shares traded up 5.44% at $7.95 during premarket trading on Tuesday.
