Sprout Social (NASDAQ:SPT) Updates Q3 2026 Earnings Guidance

Sprout Social (NASDAQ:SPT) updated its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.290-0.300 for the period, compared to the consensus earnings per share estimate of 0.180. The company issued revenue guidance of $123.3 million-$124.1 million, compared to the consensus revenue estimate of $123.7 million. Sprout Social also updated its FY 2026 guidance to 1.110-1.150 EPS.

Sprout Social Price Performance

Shares of NASDAQ:SPT traded down $0.44 during trading on Thursday, reaching $8.19. 1,778,832 shares of the company’s stock traded hands, compared to its average volume of 911,745. The firm has a market cap of $492.30 million, a PE ratio of -12.41 and a beta of 0.97. Sprout Social has a fifty-two week low of $4.92 and a fifty-two week high of $17.41. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.15. The company has a 50-day simple moving average of $7.78 and a 200-day simple moving average of $7.09.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.10. The company had revenue of $123.85 million for the quarter, compared to the consensus estimate of $122.19 million. Sprout Social had a negative return on equity of 13.90% and a negative net margin of 8.18%.Sprout Social has set its FY 2026 guidance at 1.110-1.150 EPS and its Q3 2026 guidance at 0.290-0.300 EPS. As a group, analysts predict that Sprout Social will post -0.31 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have issued reports on SPT shares. Barclays increased their price objective on shares of Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a report on Monday, May 11th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $11.88.

Insider Buying and Selling at Sprout Social

In other news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $8.28, for a total value of $331,200.00. Following the transaction, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. This trade represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 9.60% of the company’s stock.

Sprout Social News Summary

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Strong earnings guidance: Sprout Social raised its fiscal 2026 adjusted EPS outlook to $1.11–$1.15, well above the $0.68 analyst consensus. Third-quarter adjusted EPS guidance of $0.29–$0.30 also exceeded the $0.18 consensus. Sprout Social Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Revenue beat and customer momentum: Second-quarter revenue was approximately $123.8 million, ahead of expectations near $122.2 million and up 10.8% year over year. Subscription revenue from customers generating at least $30,000 in annual recurring revenue increased 20% year over year. Sprout Social beats Q2 sales expectations
• Neutral Sentiment: Revenue outlook was largely in line: Sprout Social forecast third-quarter revenue of $123.3 million–$124.1 million and full-year revenue of $493.0 million–$495.6 million, broadly matching analyst expectations. This suggests improving profitability may be driven more by efficiency than accelerating sales growth.
• Negative Sentiment: GAAP losses remain a concern: The company reported a second-quarter operating loss of $2.7 million and a net loss of $3.1 million, or approximately $0.05 per diluted share, despite reporting adjusted EPS of $0.26 in other earnings summaries. Negative margins and return on equity may have tempered the positive guidance news. Sprout Social Q2 2026 earnings
• Negative Sentiment: Insider selling adds pressure: Company insiders reported eight sales and no purchases over the past six months, including significant selling by the executive chair and CFO. While not necessarily tied to operating performance, the pattern can weigh on investor sentiment.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SPT. Invesco Ltd. grew its position in shares of Sprout Social by 38.6% in the fourth quarter. Invesco Ltd. now owns 76,775 shares of the company’s stock valued at $865,000 after purchasing an additional 21,399 shares in the last quarter. State of Tennessee Department of Treasury lifted its position in Sprout Social by 228.3% during the fourth quarter. State of Tennessee Department of Treasury now owns 38,071 shares of the company’s stock worth $429,000 after buying an additional 26,474 shares in the last quarter. EP Wealth Advisors LLC acquired a new position in Sprout Social during the fourth quarter worth $114,000. Mackenzie Financial Corp boosted its stake in Sprout Social by 225.9% during the fourth quarter. Mackenzie Financial Corp now owns 126,143 shares of the company’s stock worth $1,435,000 after buying an additional 87,434 shares during the last quarter. Finally, Fuller & Thaler Asset Management Inc. purchased a new stake in Sprout Social in the 4th quarter valued at $440,000.

Sprout Social Company Profile

Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.