Sprinklr stock falls over 5% on Q2 revenue miss and weak guidance

Sprinklr Inc.'s stock experienced a 5.6% decline after the company reported second quarter results that fell short of revenue expectations and issued weaker-than-expected guidance. The social and customer experience management platform disclosed revenue of $213.7 million for Q2, which was below the consensus estimate of $215.56 million.

Revenue, however, increased by 1% year-over-year, reaching $212.0 million compared to $212.0 million in the previous year. Adjusted earnings per share of $0.11 surpassed the analyst projection of $0.10. Subscription revenue amounted to $194.8 million, growing by 3% year-over-year. For the following quarter, Sprinklr projected total revenue ranging from $215.0 million to $216.0 million, with an average of $215.5 million, which was lower than the average analyst estimate of $216.4 million.

The company anticipates adjusted EPS of around $0.11, contrasting with the consensus estimate of $0.13. For the fiscal year 2027, Sprinklr forecasted revenue between $866.5 million and $868.5 million, slightly above the average estimate of $867.4 million. CEO Rory Read expressed confidence in the company's progress, citing strong AI innovation, new ARR growth, and increased enterprise adoption.

RPO, or remaining performance obligations, increased by 11% year-over-year to $1.03 billion, while current RPO rose by 3% to $1.03 billion. Adjusted operating income for the quarter was $31.3 million, down from $38.2 million the previous year, with a margin of 15% compared to 18% a year ago. The company concluded with $18.2 million in net cash from operations and $13.1 million in free cash flow, holding $452.9 million in cash and marketable securities as of July 31, 2026.