Customer experience management platform Sprinklr, Inc. released its financial results for the first quarter of fiscal year 2027 on June 3. The report showed the company's revenue and profit slightly exceeded market expectations. However, due to its revenue guidance for the next quarter and the full year falling below analyst forecasts, the stock price fell approximately 3.8% in pre-market trading.

According to the financial report, for the quarter ended April 30, 2026, Sprinklr achieved total revenue of $219.5 million, a 7% year-over-year increase, slightly above market expectations of $218.1 million. Subscription revenue was $194.8 million, up 6% year-over-year. Regarding profitability, the company's non-GAAP earnings per share were $0.11, surpassing the consensus analyst estimate of $0.10. GAAP net income turned positive to $4.2 million, or $0.02 per share, compared to a net loss of $1.6 million in the same period last year.

Other highlights from the report included: operating cash flow of $70.4 million and free cash flow of $65.8 million; total remaining performance obligations reached $1.04 billion, a 10% year-over-year increase; current remaining performance obligations grew 5% year-over-year. The company's CEO, Rory Read, stated that renewal rates are improving, the pipeline is healthy, and with over $1 billion in total RPO and an AI-native platform, the company is well-positioned.

However, this seemingly solid financial report did not gain market approval. The primary reason for the stock decline was the company's performance guidance falling short of expectations. For the second quarter of fiscal year 2027, Sprinklr expects total revenue between $214 million and $215 million, with the midpoint below the analyst consensus of $217.85 million. The company updated its full-year revenue guidance to a range of $866.5 million to $868.5 million, with the midpoint also below prior analyst expectations.

Concurrently, the company's profitability metrics are under pressure. The non-GAAP operating margin for the quarter declined to 14% from 18% in the same period last year, reflecting increased AI-related costs and sales investments. The company repurchased $125 million worth of its shares in the first quarter and held cash, cash equivalents, and marketable securities totaling $442.8 million at the end of the quarter.