The customer experience management platform Sprinklr, Inc. has issued its full-year revenue guidance for fiscal 2027, projecting total revenue in the range of $866.5 million to $868.5 million, with a midpoint of $867.5 million.
This figure falls short of the Wall Street consensus estimate of $914.4 million, drawing market attention.
Concurrently, the company released its first-quarter results and announced plans to deepen its investment in artificial intelligence while integrating the recently acquired video intelligence platform ViralMoment.
First Quarter Outperforms Expectations
According to its Q1 FY2027 report, Sprinklr, Inc. achieved revenue of $219.5 million for the quarter, a 7% year-over-year increase that surpassed analyst expectations of $215.3 million.
Adjusted earnings per share came in at $0.11, also exceeding the market forecast of $0.10.
Subscription revenue grew 6% to reach $194.8 million.
The financial results indicate stable operational performance, with improved renewal rates and a strong sales pipeline, reflecting growing customer confidence in the company's transformation strategy.
Full-Year Outlook Raises Market Concerns
Despite the first-quarter beat, Sprinklr, Inc.'s full-year revenue outlook failed to meet Wall Street's predictions.
The forecast for FY2027 revenue between $866.5 million and $868.5 million is significantly below the market's anticipated $914.4 million.
The second-quarter guidance also appears soft, with the company expecting revenue of $214 million to $215 million, below the consensus estimate of $215.5 million.
Following the report, the company's stock price experienced volatility, reflecting investor concerns over its growth trajectory.
Analysts note that the company's subscription revenue growth has hovered around 5-6% in recent quarters, with the gap between technological investment and commercial execution remaining a key focus for the market.
ViralMoment Acquisition to Enhance Multimodal AI Capabilities
Alongside its earnings, Sprinklr, Inc. is advancing its AI strategy.
The company announced the acquisition of ViralMoment in late May, a firm specializing in AI-driven social video intelligence analytics.
This acquisition aims to strengthen Sprinklr's leadership in multimedia customer intelligence.
As social media has entered a video-first era dominated by short-form and visual content on platforms like TikTok, Reels, and YouTube, most voice-of-the-customer programs remain text-centric, causing brands to miss critical customer signals embedded in visual and audio content.
Sprinklr's Chief Product & Corporate Strategy Officer stated that modern customer insights require brands to understand consumers as they actually communicate—visually, emotionally, and in real-time.
ViralMoment's video-native AI technology can analyze visual, audio, and on-screen text content frame-by-frame, helping brands uncover emerging trends, creative patterns, and cultural narratives to transform video content into structured, actionable customer intelligence.
Continued Progress on Platform Integration Strategy
Sprinklr, Inc. is executing an integration strategy known as "Bear Hug," which involves expanding from initial use cases to multi-product, multi-year commitments that replace multiple vendors.
The company recently signed its largest software deal ever with a global consumer electronics company, pushing its remaining performance obligations above $1 billion.
Simultaneously, Sprinklr has achieved significant results in AI automation.
The company disclosed that its AI agents achieved an intelligent interception rate of up to 90%, and customers using the full co-pilot feature saw handling times reduced by 55% to 70%.
Over 85% of pre-sales conversations have been automated, with AI-led interactions generating a conversion rate four times higher than traditional methods.
Challenges and Future Prospects
Despite ongoing investment and technological progress in AI, market concerns persist regarding Sprinklr, Inc.'s decelerating revenue growth.
The company's stock price is currently near its 52-week low, having declined approximately 40% over the past year, reflecting investor skepticism about its ability to achieve scalable, sustainable growth.
Analysts believe Sprinklr needs to find a better balance between product innovation and commercial monetization.
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