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

Sprout Social (NASDAQ:SPT) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.110-1.150 for the period, compared to the consensus EPS 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 Trading Down 5.1%

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

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

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

In related news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $8.28, for a total transaction of $331,200.00. Following the completion of the sale, the insider owned 7,417 shares in the company, valued at $61,412.76. This trade represents a 84.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is available 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 insiders.

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 Trading of Sprout Social

Large investors have recently modified their holdings of the company. Quadrant Capital Group LLC purchased a new position in Sprout Social during the 4th quarter worth $28,000. Summit Securities Group LLC lifted 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 buying an additional 2,015 shares during the period. Quarry LP grew its position in shares of Sprout Social by 264.2% during the 3rd quarter. Quarry LP now owns 3,784 shares of the company’s stock worth $49,000 after buying an additional 2,745 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Sprout Social during the 4th quarter worth $54,000. Finally, Russell Investments Group Ltd. increased its stake 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 during the period.

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.