Sprinklr Inc. stock declined in pre-market trading, slipping 2.4% to $7.42 following the release of fiscal second-quarter 2027 results issued before the market opened. The company reported total revenue of $213.7 million, which fell short of the analyst consensus of approximately $215.6 million and landed below Sprinklr's own guidance range. Earnings per share missed expectations by a significant margin, a factor that helped spark early selling in the stock.
The results marked a reversal from the previous quarter, when Sprinklr beat on both revenue and EPS. In the prior period, revenue of $219.5 million exceeded forecasts and EPS of $0.11 topped the $0.10 consensus. This quarter's performance showed a clear deceleration in year-over-year revenue growth, which slowed to just 1% overall. Subscription revenue - the recurring element central to Sprinklr's business model - increased only 3% year over year, underscoring the slowdown in the company's core segment.
Investors were especially attentive to management's guidance for the second half of fiscal 2027. That outlook was being watched as a signal of whether the growth moderation reflected a temporary pause in enterprise spending or a more persistent weakness within the enterprise software market. With the current release failing to meet both consensus and company guidance, the market reaction was swift.
The broader market context offered little support. In pre-market trading, the NASDAQ was down 0.4% while the S&P 500 was marginally lower by 0.1%, a tone that reflected caution across technology names. Other companies operating in the customer experience and enterprise software space, including peers such as Sprout Social and Braze, are also under scrutiny related to AI-driven growth narratives and enterprise budget cycles. As a result, Sprinklr's miss could weigh on sentiment across this segment.
Combined, the meaningful EPS miss, slowing revenue expansion and a soft macro tone in technology equities pressured Sprinklr's shares ahead of the opening bell. The stock now trades nearer the middle of its 52-week range of $4.71 to $8.49 after having recently approached the upper end of that band.
Key points
- Sprinklr reported total revenue of $213.7 million for Q2 fiscal 2027, missing the analyst consensus of about $215.6 million and falling below the company's guidance.
- EPS came in well below expectations, prompting pre-market selling and a 2.4% decline to $7.42.
- Year-over-year revenue growth slowed to 1%, with subscription revenue growing 3% - central indicators for enterprise software health.
Risks and uncertainties
- Weakness in subscription revenue could signal broader demand softness in enterprise software and customer experience solutions, affecting the technology and enterprise SaaS sectors.
- Management guidance for the second half of fiscal 2027 is being watched closely; insufficient clarity or conservative outlooks could further pressure shares and investor sentiment in related software names.
- A soft market backdrop for technology equities, as reflected in pre-market moves in the NASDAQ and S&P 500, increases vulnerability to additional downside in Sprinklr and its peer group.