Sprinklr, Inc. (CXM) shares plummeted 5.70% in Wednesday's trading session, despite the company reporting better-than-expected second-quarter results and raising its full-year guidance. The sharp decline appears to be driven by the unexpected announcement of a significant leadership change within the company.

The enterprise software company reported fiscal Q2 revenue of $212.04 million, surpassing analyst estimates of $205.4 million. Non-GAAP earnings per share came in at $0.13, also beating the expected $0.10. In light of these strong results, Sprinklr raised its fiscal year 2026 revenue forecast to between $837 million and $839 million, up from the previous range of $825 million to $827 million.

However, the positive financial news was overshadowed by the announcement that Chief Financial Officer Manish Sarin will be departing the company on September 19th. This unexpected management change seems to have unsettled investors, leading to the sell-off. Additionally, Sprinklr announced the appointment of Scott Millard as the new Chief Revenue Officer, adding another layer of transition to the company's leadership team. The market's negative reaction highlights the importance investors place on management stability, even in the face of strong financial performance.