Sprinklr (NYSE:CXM) traded sharply higher in premarket action Wednesday after the software company delivered a solid fiscal third-quarter performance and raised its guidance above Wall Street expectations. By 07:16 ET, the stock was up 7.6%.
The company reported earnings per share of $0.12, exceeding analyst estimates of $0.09. Revenue climbed 9% year over year to $219.1 million, beating the $209.56 million consensus. Subscription revenue — the company’s primary growth driver — increased 5% to $190.3 million.
Remaining performance obligations fell 5% compared with the same period last year, although current RPO improved 3%. Sprinklr also continued expanding its large-customer cohort, ending the quarter with 145 clients generating at least $1 million in annualized value.
Profitability improved meaningfully. Non-GAAP operating income rose to $33.5 million from $23.0 million a year ago, while non-GAAP operating margin widened to 15% from 11%.
“Our Q3 results reflect continued progress in our transformation to better serve customers and partners. While there’s more work ahead, we’re encouraged by the improving quality of customer engagements and remain focused on closing the year with momentum to establish a strong foundation for FY27,” said Rory Read, Sprinklr President and CEO.
For the fiscal fourth quarter ending January 31, 2026, Sprinklr expects revenue between $216.5 million and $217.5 million, comfortably ahead of analysts’ $209.5 million estimate. Subscription revenue guidance ranges from $191 million to $192 million.
The company maintained its full-year EPS forecast of $0.43 to $0.44, matching market expectations. It now anticipates full-year revenue between $853 million and $854 million, topping the $838 million consensus, with subscription revenue projected at $754 million to $755 million.