Sprinklr swings to GAAP profit as subscription expansion drives revenue

Sprinklr (NYSE:CXM) reported top-line expansion and a successful shift into GAAP operational profitability for its fiscal first quarter ended April 30, 2026, capitalising on continuous adoption of its unified customer experience management platform.

The New York-based software enterprise outpaced prior-year benchmarks in recurring revenue, framing its performance as a validation of its ongoing operational transformation.

Total revenue for the three-month period grew 7% year-over-year to $219.5 million, up from $205.5 million in the same quarter last year.

The core driver of this expansion was subscription revenue, which climbed 6% to $194.8 million, up from $184.1 million a year earlier, reinforcing the predictable recurring engine of the software-as-a-service provider.

This steady recurring revenue stream supported a major recovery in structural profitability.

Sprinklr recorded a GAAP operating income of $10.6 million, reversing a GAAP operating loss of $1.8 million from the first quarter of fiscal 2026.

This operational pivot lifted the company's GAAP operating margin to 5%, up from negative 1% in the prior year's comparative period.

On a diluted basis, GAAP net income per share came in at $0.02, recovering from a loss per share of $0.01 a year ago.

On a non-GAAP basis, which adjusts for stock-based compensation and non-recurring items, operating metrics reflected ongoing platform and engineering investments.

Non-GAAP operating income arrived at $31.7 million, down from $36.7 million in the prior year's first quarter, which compressed the non-GAAP operating margin to 14% from 18%.

Non-GAAP adjusted diluted earnings per share came in at $0.11, down marginally from $0.12 a year earlier.

Meanwhile, balance sheet liquidity remained a corporate anchor, with total cash, cash equivalents, and marketable securities standing at $442.8 million at the close of the quarter.

Looking forward, management issued specific financial guidance for the second fiscal quarter ending July 31, 2026.

The company projects total revenue to fall between $214 million and $215 million, with subscription revenue accounting for $193.5 million to $194.5 million of that total.

Non-GAAP operating income for the quarter is modeled to range between $29.5 million and $30.5 million, yielding non-GAAP diluted earnings per share of approximately $0.10.

For the full fiscal year ending January 31, 2027, Sprinklr revised its annual framework upward.

The company now expects full-year total revenue to land between $866.5 million and $868.5 million, with full-year subscription sales reaching up to $781.5 million.

Total non-GAAP operating income for the twelve-month period is projected between $139 million and $141 million, translating to full-year non-GAAP adjusted earnings per share of $0.48 to $0.49.