Sprinklr Inc (NYSE:CXM) stock rose 0.39% (As on June 5, 11:24:01 AM UTC-4, Source: Google Finance) after the company reported better-than-expected first quarter fiscal 2026 results, driven by solid subscription growth. Subscription revenue, a key metric for software companies, grew 4% YoY to $184.1 million, exceeding the Bloomberg consensus estimate of $182.4 million. Sprinklr generated record free cash flow of $80.7 million in the quarter, demonstrating strong cash generation capabilities. The company also reported 146 customers with over $1 million in annual recurring revenue, up 6% YoY but down slightly on a sequential basis versus Q4 of last year. Total cash, cash equivalents and marketable securities as of April 30, 2025 were $570.2 million.

Meanwhile, in the quarter, the company has booked $16.3 million in restructuring charges and paid out $11.8 million in cash related to the restructuring. The company also incurred $0.8 million in litigation costs that CXM deem to be non-core to the operations of the business.

CXM in the first quarter of FY25 has reported the adjusted earnings per share of 12 cents, beating the analysts’ estimates for the adjusted earnings per share of 10 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $205.5 million in the first quarter of FY25, beating the analysts’ estimates for revenue by 1.79%. Professional services revenue came in at $21.4 million. The subscription revenue base net dollar expansion rate in the first quarter was 102%. Non-GAAP operating income was $36.7 million, compared to non-GAAP operating income of $20.9 million one year ago. For the first quarter, non-GAAP operating margin was 18% compared to non-GAAP operating margin of 11% in the first quarter of fiscal year 2025. For the first quarter, on a non-GAAP basis, the subscription gross margin was 78% and the professional services gross margin was 6%, resulting in a total non-GAAP gross margin of 70%.

Looking ahead, Sprinklr provided guidance for the second quarter, projecting total revenue between $205 million and $206 million and adjusted EPS of approximately $0.10. Q2 FY25 Subscription revenue is expected to be between $184 million and $185 million and Non-GAAP operating income between $33.5 million and $34.5 million.

For the full fiscal year 2026, the company expects total revenue to be in the range of $825 million to $827 million, Subscription revenue to be between $741 million and $743 million, Non-GAAP operating income between $129 million and $131 million and Non-GAAP net income per share to be between $0.39 and $0.40.