Sprinklr Reports 9% Revenue Growth to $219.1 Million in Q3 Fiscal 2026

Sprinklr, Inc. reported its financial results for the third quarter of fiscal 2026, revealing a total revenue of $219.1 million for the three months ended October 31, 2025, marking a 9% increase from $200.7 million in the same period last year. Subscription revenue rose by 5% to $190.3 million, while professional services revenue surged by 43% to $28.8 million. However, the company experienced a decline in net income, which fell to $2.9 million, down from $10.5 million in the prior year, primarily due to increased tax provisions and restructuring costs.

In comparison to the previous fiscal period, Sprinklr's total revenue for the nine months ended October 31, 2025, reached $636.6 million, a 7% increase from $593.9 million in the same period of 2024. The company’s gross profit for the quarter was $145.5 million, with a gross margin of 66%, down from 71% in the prior year, attributed to rising costs associated with third-party data and cloud infrastructure. Operating income also improved to $11.6 million from $7.9 million year-over-year, reflecting better operational efficiency despite the decline in net income.

Strategically, Sprinklr has focused on enhancing its Unified Customer Experience Management (Unified-CXM) platform, which includes four main product suites: Sprinklr Social, Sprinklr Insights, Sprinklr Marketing, and Sprinklr Service. The company reported having 145 large customers as of October 31, 2025, a slight decrease from 147 a year earlier. The company continues to invest in its platform, aiming to meet the evolving needs of its diverse customer base across various industries and geographies.

Operationally, Sprinklr's Remaining Performance Obligation (RPO) stood at $857.6 million, with $562.2 million expected to be recognized as revenue over the next 12 months. The company reported a net dollar expansion rate of 102.3%, indicating a slight decline from 107.3% in the previous year, attributed to increased churn and down-selling amid challenging macroeconomic conditions. The company’s employee headcount has been adjusted due to a restructuring initiative that affected approximately 12% of its workforce, aimed at aligning costs with current business needs.

Looking ahead, Sprinklr anticipates continued growth in its subscription and professional services revenue, although it remains cautious about the potential impacts of macroeconomic uncertainties, including inflation and geopolitical tensions. The company plans to leverage its strong cash position, with $189.6 million in cash and cash equivalents and $290.8 million in marketable securities, to support its growth initiatives and operational needs in the coming quarters.