The clouds looked rather dark for cloud computing specialist Sprinklr's (CXM 0.60%) stock on Wednesday. After all, the market clearly wasn't impressed with the company's second quarter of fiscal 2026 results, expressing this by trading the stock down by 10%. And that was on a generally positive day for stocks in general, as the bellwether S&P 500 index inched up by 0.5%.
A shower of growth
Sprinklr took in revenue of $212 million for the period, a figure that was 8% higher on a year-over-year basis. Of this, subscription revenue comprised nearly $189 million, for a 6% improvement.
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The company showed higher growth on the bottom line, with non-GAAP (adjusted) net income leaping 57% higher to just under $34 million, or $0.13 per share.
Both figures beat the consensus analyst estimates. Pundits tracking the stock were collectively modeling slightly over $205 million for revenue, and $0.10 per share for adjusted, bottom-line profitability.
In the earnings release, Sprinklr sounded an almost apologetic note about the results, a factor that might have impacted investor sentiment. It quoted CEO Rory Read as saying that its "results reflect the continued and intentional progress we are making in our transformation to better serve our customers and partners."
"And while we still have work to do, we are encouraged by the increasing quality of our customer engagements, and upcoming impactful R&D innovations," Read added.
Sprinklr also took the opportunity to announce a C-suite transition. It is bringing in former Dell Technologies executive Scott Millard as chief revenue officer.
Possible future beats
In the earnings release, Sprinklr proffered guidance for both its current (third) quarter and the entirety of this fiscal year. For the latter stretch, it's forecasting total revenue of $837 million to $839 million, which is comfortably above the nearly $826 million consensus analyst estimate. Adjusted net income is anticipated to land at $0.42 to $0.43; the average pundit projection is $0.40.
