Sep 2, 2026 earnings call — Services issues, AI growth, and raised subscription guide
Raised full-year subscription revenue guide to $782.5 million to $784.5 million, representing 4% growth year-over-year at the midpoint.
Revenue $0.2B (est $0.2B) · EPS $0.11 (est $0.10)
Key quotes
"To accelerate these efforts, I will lead our services organization on an interim basis."
"With more than 200 AI engagements underway across our customer set, our Agentic AI capabilities are helping our customers improve productivity, enhance customer experiences, and accelerate results."
"For the full year FY '27, we are flowing through the beat from Q2 and raising our subscription revenue guide to be in the range of $782.5 million to $784.5 million, representing 4% growth year-over-year at the midpoint."
Analyst Q&A 9
professional services execution issue
Q (Jackson Ader · KeyBanc): Is the weak professional services a true execution problem or lower demand? How will you reallocate time and resources to keep new deal signings top priority into Q4?
A: Management said this was a transition and execution issue after a very large implementation. They said they had too much partner expense short term and will clean it up over the next few quarters, while staying focused on closing large deals in 3Q and 4Q and key renewals.
"But basically, the transgression was that we got caught with a bit too much partner expense in the short term." — Rory Read (CEO)
partners versus internal services and margins
Q (Arjun Bhatia · William Blair): How will you balance external partners versus internal teams for services? And where can OpEx leverage drive margins in fiscal '27 or '28?
A: They view services as an enabler and want to use internal expertise for critical projects while leveraging partners for reach and higher win rates. On margins, they are paying down technical debt this year (tokenization, AI) and running Project Blitz and Blaze; finishing most of that technical deficit should let them be more efficient and potentially expand profitability over the next year or two.
"That troika, the 3-way of Sprinklr, the partner, and the customer wins about 15 points higher win rate." — Rory Read (CEO)
sales activity versus revenue and hires
Q (Kincaid LaCorte · Citizens Bank): You said completed sales transactions were up 30% YoY but revenue lagged — how should we read that? Also, who else do you need to add to the leadership team?
A: Management said the transaction increase is an anecdotal sign of stronger activity and a healthier pipeline; they plan to crank new logo acquisition higher and build subscription growth over several quarters. They also said most VP/SVP roles are filled, they need a head of Partners, will name a new Customer Success leader soon, and will search for a long-term leader for Service and Support after Rory puts his fingerprints on it.
"When I first got here, we backed down new logo acquisition to about 20% of our volume." — Rory Read (CEO)
billings driver and AI project demand
Q (Raimo Lenschow · Barclays): Were billings weakness and noise driven by professional services? And what are you seeing in new AI project starts and sales engagements?
A: They said most of the billings softness was services-related and that services billings came a bit softer than anticipated for the quarter, but total RPO and larger deal terms still support the model. On AI and new projects, they said pipeline looks good, Bear Hug is working, they have over 200 AI Agentic Copilot engagements, Project Blitz is speeding releases, and Blaze has forward-deployed engineers on over 70% of those customer AI engagements.
"This is mostly related to services billings. And while we don't guide on billings, we -- it came a bit softer than anticipated for the quarter." — Anthony Coletta (CFO)
net dollar expansion sustainability
Q (Catharine Trebnick · Rosenblatt): You had north of 110% net dollar expansion for five quarters — is that sustainable and what is driving it (seats, modules, price)?
A: They said the trend is steady and solid, especially in the $1 million-plus cohort, with more renewals and NAR growth and customer sentiment firming. They expect the metric to stay steady or firm up, noting some transition under the surface between cohorts, and Rory added that improved Bear Hug execution is helping renewals and expansion.
"This is for 5 consecutive quarters north of 110%, as I said." — Anthony Coletta (CFO)
Middle East deals and data location
Q (Mason Marion · Cantor Fitzgerald): Did the Middle East deals that slipped close? Is the region still disrupted? Will customers stay on the Irish data center or move back, and how does that affect gross margins?
A: They said the Middle East team is determined, some deals that slipped from 1Q closed in 2Q and others closed, but the macro remains choppy so they are not counting on breakout numbers. For data, they have built in-region capacity for sovereign data needs and are starting to move some customers back to the Middle East while investing in capacity for future demand in the region and Asia.
"We saw the deals that slipped from 1Q pretty much close in 2Q, but then we saw some other deals close." — Rory Read (CEO)
subscription guidance and acceleration signs
Q (Elizabeth Elliott · Morgan Stanley): What measurable metrics show you will move from execution to acceleration in fiscal '28, and how much depends on back-half execution?
A: They said the next two quarters (3Q and 4Q) are decisive and they must execute those quarters to set the trajectory for next year. They have had three predictable quarters so far and are working to clean up accelerated churn from last year; they will give updates at the end of 3Q and 4Q.
"How we execute 3Q and 4Q sets up the trajectory for next year." — Rory Read (CEO)
AI engagements maturity and deal uplift
Q (Tyler Radke · Citi): How do current AI engagements differ from a year ago, and what uplift do those engagements translate into when they become deals?
A: They said engagements moved from POCs to Agentic and Copilot use cases that require workflows, APIs, and contextual data, so implementations take longer (months) but yield real returns. They have over 300 AI engineers and track every project; the 200 engagements are real outcomes with cost savings and deflection, and they expect this to drive growth over the next 2–3 years.
"In 3, 4 quarters ago, it's a lot of POCs and a lot of concepts." — Rory Read (CEO)
industry traction and AI customer spread
Q (Clark Wright · D.A. Davidson): Which end markets are showing traction and how do top-tier AI customers differ from plans to expand AI across the broader base?
A: They said traction is visible across enterprise customers, notably in banking and retail and most spaces they serve, after hardening CCaaS and product processes. For AI, they see strong engagement from iconic enterprise brands across CCaaS and core, are focused on defining workflows and linking data to drive outcomes, and plan to ramp new logo activity into FY '28 given a 6–9 month sales cycle.
"What we're seeing is we're seeing traction in the idea across these enterprise customers." — Rory Read (CEO)