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

Key Points

• FY2026 guidance: Sprout Social set FY26 EPS at $0.880–$0.970 (consensus $0.65) and revenue at $492.5M–$495.5M (consensus $493.1M), and guided Q2 EPS to $0.150–$0.160.
• Shares rose about 6.8% to $6.80 on the update, but the company recently missed quarterly EPS (−$0.07 vs. $0.16) and remains unprofitable with a negative net margin and return on equity.
• Insiders have sold significant stock (103,855 shares in the last 90 days, including a 40,000-share sale by Justyn Russell Howard), while analysts show an average "Hold" rating with a $13.11 target.

Sprout Social (NASDAQ:SPT - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.880-0.970 for the period, compared to the consensus earnings per share estimate of 0.650. The company issued revenue guidance of $492.5 million-$495.5 million, compared to the consensus revenue estimate of $493.1 million. Sprout Social also updated its Q2 2026 guidance to 0.150-0.160 EPS.

Sprout Social Stock Up 6.8%

NASDAQ SPT traded up $0.43 during mid-day trading on Thursday, reaching $6.80. 1,446,018 shares of the company's stock traded hands, compared to its average volume of 1,595,186. Sprout Social has a 1-year low of $4.92 and a 1-year high of $25.48. The company has a fifty day simple moving average of $5.94 and a 200-day simple moving average of $8.50. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.20. The company has a market cap of $405.01 million, a price-to-earnings ratio of -9.19 and a beta of 0.94.

Sprout Social (NASDAQ:SPT - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.23). Sprout Social had a negative net margin of 9.47% and a negative return on equity of 16.10%. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. As a group, equities research analysts expect that Sprout Social will post -0.39 EPS for the current year.

Analysts Set New Price Targets

Several research analysts have recently commented on SPT shares. KeyCorp decreased their target price on Sprout Social from $9.00 to $6.00 and set an "underweight" rating for the company in a research report on Friday, February 27th. Wall Street Zen upgraded Sprout Social from a "hold" rating to a "buy" rating in a research report on Sunday, March 8th. Canaccord Genuity Group reiterated a "hold" rating and issued a $9.00 target price (down from $16.00) on shares of Sprout Social in a research report on Friday, February 27th. Jefferies Financial Group decreased their target price on Sprout Social from $15.00 to $12.00 and set a "buy" rating for the company in a research report on Tuesday, February 3rd. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Sprout Social in a research report on Tuesday, April 21st. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Sprout Social presently has an average rating of "Hold" and an average target price of $13.11.

Insider Transactions at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the business's stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $5.03, for a total transaction of $201,200.00. Following the completion of the transaction, the insider owned 7,417 shares in the company, valued at $37,307.51. The trade was a 84.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 103,855 shares of company stock worth $600,860. Insiders own 9.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quadrant Capital Group LLC acquired a new position in Sprout Social during the fourth quarter worth about $28,000. Summit Securities Group LLC grew its holdings in shares of Sprout Social by 399.0% in the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company's stock worth $28,000 after acquiring an additional 2,015 shares during the last quarter. Quarry LP grew its holdings in shares of Sprout Social by 264.2% in the 3rd quarter. Quarry LP now owns 3,784 shares of the company's stock worth $49,000 after acquiring an additional 2,745 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Sprout Social during the fourth quarter valued at $54,000. Finally, Russell Investments Group Ltd. grew its holdings in shares of Sprout Social by 39.1% during the fourth quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company's stock valued at $70,000 after buying an additional 1,752 shares in the last quarter.

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.

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