September 3, 2026 • 5 min read
Sprinklr's Q2 2027 Numbers Signal A Shift In The CX Market
CX Analyst & Thought Leader
September 3, 2026
On the surface, Sprinklr’s Q2 2027 September 2 earnings call wasn’t exactly earth-shattering: a 1% increase in total revenue, a 3% increase in subscription revenue, and a significant drop in professional services revenue.
But a closer look at the results shows how the CX space itself is shifting.
Tech stack consolidation to a unified, AI-native CX platform is paramount for lower costs and reduced IT complexity. Enterprise customers are becoming more open to longer-term contracts with vendors they trust. And perhaps above all, achieving AI maturity and value now belongs to those who move beyond the false promises of pie-in-the-sky demos and towards more realistic outcomes and deployments.
Sprinklr Q2 Fiscal 2027 Earnings: Key Takeaways
Sprinklr’s Q2 2027 total revenue was less than 1% below market expectations at $213.7 million, a 1% YoY increase. Q2 27 non-GAAP operating income was $31.3 million, with a 15% non-GAAP operating margin. Non-GAAP earnings were $0.11 per share, beating analyst estimates by 10%.
Subscription revenue climbed by 3%, hitting within the expected range at $194.8 million and representing about 91% of total quarterly revenue. However, revenue from professional services fell to $18.9 million.
For context, Q1 27 total revenue increased by 7% YoY to $219.5 million, subscription revenue increased by 6% YoY, and professional services revenue beat expectations at $24.7 million.
Results indicated that Sprinklr’s Project Bear Hug (which, starting in early 2025, initiated an increased focus on Sprinklr’s top 700+ enterprise customers), has had a positive impact. Key wins this quarter include NAR growth of over 50% YoY, four ARR deals worth over $1 million each, and a 30% YoY increase in completed sales transactions.
Multiple Q2 renewals and expansions extended contract lengths by up to five years, while Sprinklr’s average NAR contract length extended by over two months for the second consecutive quarter. In Q2, a sports betting and gaming company signed a 5-year agreement with Sprinklr worth over $20 million. It also achieved a $4 million TCV expansion with a financial services and software company – allowing the Sprinklr customer to consolidate 3 vendors and 6 contracts into Sprinklr’s unified platform.
Perhaps most impactful is the 11% YoY increase in RPO, representing a $1.03 billion backlog. (Current RPO grew by 3% YoY to $614 million). This is a result of the aforementioned extensions in customer contract lengths, and signals that Sprinklr's enterprise customers are, so to speak, in it for the long haul.
Sprinklr’s Q2 2027 Results: A Closer Look
The results are perhaps somewhat expected given that, as CEO Rory Read himself said, “firmly in the transition and execution phase” of becoming “a more customer-centric company.”
Recent changes include the July 2026 appointment of Thomas Addis as CRO, the addition of Jordi Ribas to the Board of Directors, and new AI capabilities like LLM Insights and GenAI-powered summaries. In May of 2026, Sprinklr acquired the social video intelligence and analytics platform ViralMoment, providing deeper insight into market trends and content performance.
During the call, Read outlined his plan to get Sprinklr’s professional services and support back on track: starting with his decision to serve as interim services organization leader. Additionally, Read cited plans to “leverage partners to give us more reach” while relying on strong internal expertise for high-value projects. He believes leveraging AI across service delivery models, alongside pushing managed services, will “help create a stronger foundation for growth and customer success” going forward.
Read also highlighted Sprinklr’s technology and product innovation as “another key driver of our long-term growth strategy:”
“Sprinklr's differentiation starts with our AI-native unified platform…underpinning this innovation is a highly scalable enterprise-grade platform that ingests over 180 billion customer conversations annually and delivers the performance and reliability that global enterprises depend on. With more than 200 AI engagements underway across our customer set, our Agentic AI capabilities are helping our customers improve productivity, enhance customer experiences, and accelerate results. We believe our unified platform, proprietary customer intelligence, and deep enterprise expertise position Sprinklr to be a leader in the next generation of AI-powered customer experience.”
Rory Read
Q3 2027 and FY 2027 Guidance
During the second half of the call, CFO Anthony Coletta laid out Q3 and FY 2027 expectations.
For Q3, total revenue is expected to be $215-$216 million. Subscription revenue is expected to grow by 3% YoY at the midpoint, reaching $196-$197 million. Professional services revenue is expected to continue to decline to as much as 34% YoY. Sprinklr expects $19 million in Q3 professional services revenue, with Q3 professional services gross margin expected to hit negative 15%.
That said, FY 2027 subscription revenue is expected to hit $782.5-$784.5 million for a 4% YoY growth at the midpoint. Total FY 27 revenue is expected to come in at $866.5-$868.5 million for a 1% YoY growth at the midpoint, while $84 million in total professional services revenue is expected.
“Q2 was a stepping stone as we continue positioning the business for the next phase. We are seeing positive signs in the renewal rates and customer engagements. We have some headwinds for services, but we are taking action. This is distinct from our subscription growth outlook and from tangible progress of our core operating model. Our fundamentals remain solid with a healthy balance sheet and strong cash conversion. As we move through this transition, we are building momentum and continue to instill operational discipline as we execute our strategy.”
Anthony Coletta
Anthony Coletta