Sprinklr's Ambitious Transformation: A Q1 2026 Update
Sprinklr, a leading provider of customer experience management (CXM) software, has released its first-quarter fiscal year 2026 financial results, offering a glimpse into the company's ambitious transformation journey.
During the earnings call, Rory Read, President and CEO of Sprinklr, highlighted several key takeaways from Q1 2026. Notably, the company achieved $205.5 million in total revenue, a 5% year-over-year increase, with subscription revenue growing 4% to $184.1 million. Additionally, Sprinklr generated $3.7 million in non-GAAP operating income, resulting in an 18% non-GAAP operating margin for the quarter.
One of the most significant accomplishments during Q1 2026 was the appointment of Sanjay Mcwan as Chief Information Officer (CIO). Mr. Mcwan brings extensive experience in enterprise technology and information security, which is expected to strengthen Sprinklr's security posture and support its long-term vision of delivering world-class products.
However, despite these positive developments, Rory Read acknowledged that the company still has significant work to do across its business to elevate consistency in execution, improve predictability of results, and drive future growth. As he noted, FY 2026 is a transitional year for Sprinklr, marked by near-term challenges stemming from past execution difficulties and macroeconomic uncertainty.
The latter has resulted in longer sales cycles and increased scrutiny of enterprise spending, putting pressure on renewal cycles and leading to more downsell activity and, in some cases, logo churn. Addressing these issues is a top priority for Sprinklr's transformational journey, with the company actively working to resolve them.
Looking ahead, Sprinklr's leadership team remains committed to its ambidextrous strategy, which involves implementing business management systems, optimizing cost structures, realigning go-to-market coverage models, and strengthening product delivery roadmaps. This foundation is expected to support strategic investments and efficient operations, ultimately driving growth and improving customer experiences.
While the road ahead may be challenging, Sprinklr's dedication to its transformation journey suggests that the company is poised for future success. As it continues to address its near-term challenges and build upon its strengths, investors and customers alike will be watching with interest to see how Sprinklr evolves in the months and quarters to come."
