Sprinklr Inc. (NYSE:CXM) delivered first-quarter fiscal 2027 results that surpassed analyst forecasts, although a weaker-than-expected revenue outlook for the remainder of the year tempered market reaction.
Shares were little changed in premarket trading on Wednesday, rising just 0.18% as investors balanced the stronger quarterly performance against a cautious forward-looking forecast.
Revenue and Earnings Exceed Wall Street Forecasts
The customer experience management software provider reported adjusted earnings of $0.11 per share, ahead of the consensus estimate of $0.10.
Quarterly revenue increased 7% year over year to $219.5 million, exceeding analyst expectations of $215.3 million and improving from $205.5 million in the comparable period last year.
Subscription revenue, which represents the largest portion of the company’s business, rose 6% to $194.8 million.
Full-Year Revenue Forecast Disappoints
Despite the quarterly beat, investors focused on Sprinklr’s updated outlook for fiscal 2027.
The company projected full-year revenue in a range of $866.5 million to $868.5 million, implying a midpoint of $867.5 million. That forecast came in well below Wall Street expectations of approximately $914.4 million.
Management also issued a softer-than-expected outlook for the second quarter.
Revenue is expected to range between $214 million and $215 million, with the midpoint slightly below analyst projections of $215.5 million.
Second-quarter adjusted earnings per share are forecast at $0.10, compared with consensus expectations of $0.12.
Management Highlights Progress in Business Transformation
President and Chief Executive Officer Rory Read emphasized the company’s operational improvements and customer demand trends.
“We delivered solid first-quarter results with revenue growth, expanding subscription revenue, and strong profitability,” said President and CEO Rory Read. “Our renewals are improving, and we have a healthy pipeline reflecting growing customer confidence as we execute the next phase of our transformation.”
The comments suggest management remains confident in the company’s strategic initiatives despite the conservative guidance.
Contracted Business Continues to Expand
Sprinklr reported remaining performance obligations (RPO) of $1.04 billion, representing a 10% increase from a year earlier.
Current remaining performance obligations, a key indicator of near-term contracted revenue, rose 5% year over year.
The growth in backlog points to continued customer commitments and future revenue visibility.
Cash Flow Remains Strong
The company generated solid cash flow during the quarter, with operating cash flow reaching $70.4 million.
Free cash flow totaled $65.8 million, highlighting Sprinklr’s ability to convert revenue into cash while maintaining profitability.
Earnings Outlook Remains in Line with Expectations
While revenue guidance disappointed investors, Sprinklr maintained a full-year adjusted earnings outlook broadly consistent with market forecasts.
The company expects fiscal 2027 adjusted earnings per share of $0.48 to $0.49, compared with analyst estimates of approximately $0.48.
The combination of stronger profitability and weaker growth expectations left investors weighing whether operational improvements can offset slowing revenue momentum as the company moves through the next phase of its transformation strategy.