Sprout Social (NASDAQ:SPT) Releases FY 2026 Earnings Guidance

Key Points

• Sprout Social raised its FY 2026 EPS guidance to $1.11–$1.15, well above the analyst consensus of $0.68. Revenue guidance of $493.0 million–$495.6 million was broadly in line with the $494.4 million consensus, while Q3 EPS guidance was set at $0.29–$0.30.
• The company’s latest quarterly results exceeded expectations, with EPS of $0.26 versus the $0.16 consensus and revenue of $123.85 million versus $122.19 million expected.
• Shares traded at $8.19, while analysts maintained a consensus “Hold” rating and an $11.88 price target. Insider Justyn Russell Howard also sold 40,000 shares under a pre-arranged Rule 10b5-1 plan.

Sprout Social (NASDAQ:SPT - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.110-1.150 for the period, compared to the consensus earnings per share estimate of 0.680. The company issued revenue guidance of $493.0 million-$495.6 million, compared to the consensus revenue estimate of $494.4 million. Sprout Social also updated its Q3 2026 guidance to 0.290-0.300 EPS.

Sprout Social Price Performance

Shares of Sprout Social stock traded down $0.44 on Thursday, hitting $8.19. The company had a trading volume of 1,774,468 shares, compared to its average volume of 1,495,673. Sprout Social has a 52 week low of $4.92 and a 52 week high of $17.41. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.95 and a quick ratio of 0.95. The company has a market cap of $492.27 million, a PE ratio of -12.41 and a beta of 0.97. The business has a 50-day simple moving average of $7.75 and a 200-day simple moving average of $7.10.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.16 by $0.10. Sprout Social had a negative return on equity of 13.90% and a negative net margin of 8.18%.The firm had revenue of $123.85 million during the quarter, compared to the consensus estimate of $122.19 million. 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. Research analysts expect that Sprout Social will post -0.31 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research note on Friday, July 17th. Barclays lifted their price target on shares of Sprout Social from $8.00 to $9.00 and gave the stock an "overweight" rating in a research report on Monday, May 11th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Sprout Social presently has a consensus rating of "Hold" and a consensus target price of $11.88.

Insider Activity

In related news, insider Justyn Russell Howard sold 40,000 shares of the company'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 completion of the sale, the insider owned 7,417 shares in the company, valued at approximately $61,412.76. This represents a 84.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is owned by corporate insiders.

Institutional Trading of Sprout Social

Several large investors have recently added to or reduced their stakes in the company. Cubist Systematic Strategies LLC boosted its position in Sprout Social by 739.6% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 714,089 shares of the company's stock worth $14,932,000 after acquiring an additional 629,033 shares during the period. Canada Pension Plan Investment Board increased its holdings in shares of Sprout Social by 20,382.0% in the 2nd quarter. Canada Pension Plan Investment Board now owns 471,087 shares of the company's stock valued at $9,850,000 after purchasing an additional 468,787 shares during the period. Readystate Asset Management LP acquired a new position in shares of Sprout Social in the 4th quarter valued at about $4,830,000. Qube Research & Technologies Ltd lifted its position in shares of Sprout Social by 61.0% in the third quarter. Qube Research & Technologies Ltd now owns 1,022,426 shares of the company's stock worth $13,210,000 after purchasing an additional 387,541 shares in the last quarter. Finally, HRT Financial LP purchased a new stake in shares of Sprout Social in the fourth quarter worth approximately $3,808,000.

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.

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