Sprinklr, Inc. Q2 2027 Earnings Recap

Sprinklr’s shares fell 17.9% after earnings as investors focused on continued growth weakness and execution issues in professional services and support. Although management cited improving bookings and enterprise activity, quarterly revenue grew just 1% year over year, while the services organization required direct CEO oversight and profitability remediation.

Key Takeaways

• Q2 revenue was $213.7 million, up 1% year over year; subscription revenue rose 3% to $194.8 million.
• Non-GAAP operating income was $31.3 million, equivalent to a 15% non-GAAP operating margin.
• Positive demand indicators included NAR growth of more than 50%, four deals exceeding $1 million in ARR, a 30% year-over-year increase in completed sales transactions, and improved renewal rates.
• Management acknowledged that professional services and support require greater focus, with priorities including better partner utilization, increased AI-enabled delivery efficiency, and higher managed-services attach rates.
• CEO Rory Read will lead the services organization on an interim basis, highlighting execution and profitability concerns during the company’s ongoing transformation.