Sprinklr, Inc. (NYSE: CXM) is a unified customer experience management platform that helps enterprises deliver customer-facing solutions across various channels, utilizing advanced AI capabilities. The company serves over 1,900 organizations, including many Fortune 100 companies such as Microsoft and P&G.

For the first quarter of fiscal year 2026, Sprinklr reported total revenue of $205.5 million, marking a 5% increase from $196.0 million in the same period the previous year. Subscription revenue rose to $184.1 million, compared to $177.4 million year-over-year, reflecting a 4% growth. Professional services revenue was $21.4 million, with the company achieving a non-GAAP operating income of $36.7 million for the quarter, resulting in an 18% non-GAAP operating margin. Free cash flow reached a record $80.7 million, contributing to a strong cash and marketable securities balance of $570.2 million with no debt outstanding.

The company had 146 customers who generated at least $1 million in annual subscription revenue, reflecting a 6% increase year-over-year. However, the subscription revenue-based net dollar expansion rate was reported at 102%, influenced by some elevated customer churn and downsell activity. The remaining performance obligations (RPO) stood at $943.2 million, with a current RPO of $596.8 million, which grew by 2% and 5% year-over-year, respectively.

In terms of guidance, Sprinklr expects total revenue for the second quarter to be between $205 million and $206 million, which translates to a growth rate of approximately 4% year-over-year at the midpoint. Subscription revenue for Q2 is anticipated to fall between $184 million and $185 million. The company forecasts non-GAAP operating income in the range of $33.5 million to $34.5 million, resulting in a projected non-GAAP net income per diluted share of approximately $0.10, assuming 270 million diluted weighted average shares outstanding.

For the full fiscal year 2026, Sprinklr has maintained its guidance for subscription revenue to range from $741 million to $743 million. Total revenue is expected between $825 million and $827 million, reflecting a 4% growth year-over-year at the midpoint. The company’s guidance for non-GAAP operating income remains at an estimated range of $129 million to $131 million, which implies a non-GAAP net income per diluted share between $0.39 and $0.40.

Sprinklr is also initiating a new stock buyback program of up to $150 million, reflecting confidence in the company’s operational improvements and strong cash flow. The free cash flow margin target for fiscal year 2026 stands at approximately 15%, with a forecast of around $125 million in total free cash flow for the year.