Sprinklr Reports Q4 and FY2026 Results; Announces Major \$200 Million Stock Repurchase Program

Key Highlights from the Report

• Q4 Total Revenue: \$220.6 million, up 9% year-over-year
• Q4 Subscription Revenue: \$193.4 million, up 6% year-over-year
• Q4 Net Cash Provided by Operating Activities: \$20.7 million
• Q4 Free Cash Flow: \$15.9 million
• Remaining Performance Obligations (RPO): Flat; Current RPO (cRPO) up 1.0%
• Q4 GAAP Net Income Per Share (Diluted): \$0.04 (down from \$0.37 in Q4 FY2025)
• Q4 Non-GAAP Net Income Per Share (Diluted): \$0.13 (up from \$0.10 in Q4 FY2025)
• Authorization of \$200 Million Stock Repurchase Program
• Immediate Execution of \$125 Million Accelerated Share Repurchase (ASR)

Details and Analysis for Investors

Financial Performance for Q4 and FY2026

Sprinklr, Inc. delivered solid financial results for the fourth quarter and full-year fiscal 2026. The company’s total revenue for Q4 reached \$220.6 million, representing a 9% increase from \$202.5 million in the prior year. Subscription revenue, the main driver of growth, was \$193.4 million for the quarter, up 6% year-over-year.

The company generated \$20.7 million in net cash from operating activities and posted a free cash flow of \$15.9 million in Q4, underscoring its improved operational efficiency and cash generation capability.

Remaining Performance Obligations (RPO), an indicator of contracted revenue yet to be recognized, remained flat, while current RPO (cRPO), which covers the next 12 months, rose slightly by 1.0%. This signals steady, though modest, future revenue visibility.

GAAP net income per diluted share was \$0.04, a decrease from \$0.37 in Q4 FY2025, reflecting higher expenses or possibly one-time items. However, on a non-GAAP basis (which excludes stock-based compensation and other non-cash or non-recurring items), diluted net income per share was \$0.13, up from \$0.10 in the year-ago quarter. This improvement highlights the company’s underlying profitability.

Major Shareholder News: \$200 Million Share Repurchase Program

The most significant news for shareholders is the Board of Directors’ authorization of a new \$200 million stock repurchase program. This move demonstrates the company’s confidence in its long-term prospects and its commitment to enhancing shareholder value.

Notably, Sprinklr intends to execute an immediate \$125 million Accelerated Share Repurchase (ASR), with the remaining \$75 million authorized for opportunistic buybacks over the next year, subject to market conditions and other factors.

The repurchase program can be executed in various ways, including open market purchases, privately negotiated transactions, and through 10b5-1 trading plans or structured repurchase agreements (e.g., collared ASRs, volume-weighted average price purchases). The company’s ability to repurchase shares will depend on several factors, including market price, business conditions, alternative investment opportunities, and any constraints in trading plans.

Management Commentary and Strategic Direction

Management emphasized that the share repurchase reflects Sprinklr’s strong balance sheet and free cash flow generation. The company’s leadership remains focused on disciplined execution and navigating macroeconomic uncertainties. They reiterated their confidence in Sprinklr’s strategy, momentum, and their ability to deliver long-term shareholder value.

Financial Guidance and Outlook

• Q1 FY2027 Non-GAAP Operating Income: Projected between \$14 million and \$14.5 million
• Q1 FY2027 Non-GAAP Net Income Per Share: \$0.47 to \$0.48, assuming 244 million diluted shares outstanding

Sprinklr is also providing guidance for FY2027, projecting continued profitability on a non-GAAP basis. This guidance, along with the share repurchase program, signals management’s positive outlook for the business and its commitment to returning capital to shareholders.

Other Financial and Operational Metrics

• Total Assets (as of January 31, 2026): \$1.18 billion
• Total Stockholders’ Equity: \$592.6 million
• Cash, Cash Equivalents, and Marketable Securities: Robust, supporting the repurchase program and strategic flexibility
• Customer Base: Over 1,600 enterprise customers, including 59% of the Fortune 100

Forward-Looking Statements and Risks

The company cautioned that its forward-looking statements are subject to risks and uncertainties, including market volatility, the timing and execution of the share repurchase program, macroeconomic conditions, and changes in business strategy or capital allocation priorities.

What Shareholders Need to Know

• The \$200 million share repurchase program is a significant capital allocation decision. This could support the stock price and reflects confidence from the Board and management in Sprinklr’s future.
• The immediate \$125 million ASR means tangible buyback activity in the near term, which may reduce share count and boost EPS.
• Non-GAAP profitability continues to improve, and the company remains cash flow positive, enhancing financial stability and flexibility.
• The company’s revenue growth, while healthy, is moderating. Investors should watch for any acceleration or deceleration in coming quarters.
• Risks remain, especially related to execution of the buyback, market conditions, and ongoing macroeconomic uncertainty.

Conclusion

Sprinklr has reported a strong quarter, highlighted by steady revenue growth, increasing non-GAAP profitability, and robust cash generation. The headline-making announcement of a \$200 million share repurchase program, with a \$125 million ASR to be executed immediately, is likely to be viewed favorably by the market and could be a positive catalyst for the share price. Investors should monitor the company’s execution against its guidance and the progress of the repurchase program going forward.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their own advisors and review all available information before making investment decisions. Forward-looking statements are subject to risks and uncertainties as outlined by the company.

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