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

Sprout Social (NASDAQ:SPT) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share (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.

Analysts Set New Price Targets

Several research firms recently commented on SPT. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. KeyCorp raised their price target on Sprout Social from $6.00 to $7.00 and gave the stock an “underweight” rating in a research note on Friday. Finally, Barclays lifted their price target on Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a report on Monday, May 11th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $10.43.

Sprout Social Trading Up 26.3%

Shares of SPT stock traded up $2.15 on Friday, reaching $10.34. 3,394,785 shares of the stock were exchanged, compared to its average volume of 954,699. 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 stock has a market cap of $621.54 million, a P/E ratio of -20.68 and a beta of 0.97. The firm has a 50 day moving average of $7.83 and a two-hundred day moving average of $7.11. Sprout Social has a 1-year low of $4.92 and a 1-year high of $16.03.

Sprout Social (NASDAQ:SPT) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.26 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 9.06% and a negative net margin of 6.13%.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. On average, research analysts anticipate that Sprout Social will post -0.31 EPS for the current year.

Insider Buying and Selling

In related news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction that occurred on 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 owned 7,417 shares in the company, 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 accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.60% of the company’s stock.

Sprout Social News Roundup

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

• Positive Sentiment: Sprout Social reported second-quarter revenue of approximately $123.85 million, ahead of the $122.19 million analyst consensus. Adjusted earnings were $0.26 per share, beating estimates of $0.16 and improving from $0.18 a year earlier. Sprout Social Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management issued notably stronger profitability guidance: third-quarter adjusted EPS of $0.29-$0.30 versus a $0.18 consensus, and full-year 2026 EPS of $1.11-$1.15 versus expectations of $0.68. Full-year revenue guidance of $493.0-$495.6 million was broadly in line with the $494.4 million consensus. Sprout Social Earnings and Guidance
• Positive Sentiment: The earnings presentation and call emphasized continued growth among larger customers, with subscription revenue contribution from customers generating at least $30,000 in annual recurring revenue rising 20% year over year. AI product investment and customer upselling support the case for stronger monetization and operating leverage. Sprout Social Announces Second Quarter 2026 Financial Results
• Neutral Sentiment: Although adjusted results were profitable, Sprout Social remained unprofitable under GAAP, recording an operating loss of approximately $2.7 million and a net loss of $3.1 million. Operating cash flow was positive at $8.5 million, with $119.9 million in cash and equivalents. Sprout Social Q2 2026 Results
• Negative Sentiment: Recent insider activity remains a potential overhang: insiders reported eight sales and no purchases over the past six months, including sales by the executive chair and CFO. This may raise concerns about insider confidence despite the strong quarterly outlook.

Hedge Funds Weigh In On Sprout Social

A number of hedge funds have recently made changes to their positions in SPT. Brighton Jones LLC lifted its position in Sprout Social by 391.7% during the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock worth $1,105,000 after acquiring an additional 28,667 shares in the last quarter. AQR Capital Management LLC acquired a new stake in Sprout Social in the first quarter valued at approximately $365,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Sprout Social by 2.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock valued at $1,168,000 after purchasing an additional 1,265 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Sprout Social by 23.0% during the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company’s stock valued at $7,163,000 after purchasing an additional 60,947 shares during the period. Finally, Empowered Funds LLC acquired a new position in shares of Sprout Social during the first quarter worth $325,000.

About Sprout Social

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.