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

Sprout Social (NASDAQ:SPT) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 0.880-0.970 for the period, compared to the consensus EPS estimate of 0.290. The company issued revenue guidance of $490.2 million-$495.2 million, compared to the consensus revenue estimate of $485.5 million. Sprout Social also updated its Q1 2026 guidance to 0.150-0.160 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Canaccord Genuity Group reaffirmed a “hold” rating and issued a $9.00 target price (down from $16.00) on shares of Sprout Social in a research note on Friday. KeyCorp lowered their price objective on shares of Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sprout Social in a report on Thursday, January 22nd. Needham & Company LLC lowered their price target on Sprout Social from $32.00 to $14.00 and set a “buy” rating for the company in a report on Friday. Finally, Morgan Stanley decreased their price objective on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday, November 13th. 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 stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $15.11.

Sprout Social Stock Performance

Shares of NASDAQ SPT opened at $6.45 on Friday. The stock has a 50 day moving average price of $9.12 and a 200 day moving average price of $11.13. The stock has a market capitalization of $381.77 million, a PE ratio of -8.72 and a beta of 0.90. Sprout Social has a 52 week low of $6.03 and a 52 week high of $27.81. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.89 and a current ratio of 0.89.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. Sprout Social had a negative net margin of 9.47% and a negative return on equity of 16.51%. The business had revenue of $120.89 million during the quarter, compared to analysts’ expectations of $118.68 million. Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. Analysts predict that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Ryan Paul Barretto purchased 93,984 shares of the business’s stock in a transaction dated Friday, January 9th. The stock was bought at an average price of $10.67 per share, with a total value of $1,002,809.28. Following the acquisition, the chief executive officer owned 875,256 shares in the company, valued at approximately $9,338,981.52. The trade was a 12.03% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Aaron Edward Frederick Rankin purchased 90,661 shares of the stock in a transaction dated Wednesday, December 17th. The shares were acquired at an average cost of $11.14 per share, with a total value of $1,009,963.54. Following the acquisition, the director directly owned 114,969 shares in the company, valued at $1,280,754.66. This represents a 372.97% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 10.12% of the stock is owned by company insiders.

Trending Headlines about Sprout Social

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

• Positive Sentiment: Q4 results beat estimates and management raised guidance — Sprout reported $0.20 non‑GAAP EPS and $120.9M revenue (both above consensus) and issued Q1 and FY‑2026 non‑GAAP EPS and revenue guidance well above prior expectations; this supports the company’s claim of improving profitability and cash generation. SPT Beats Q4 Sales Expectations (Yahoo)
• Positive Sentiment: Strategic catalysts: management set a new target (30% Rule of 40 on a non‑GAAP basis by Q4 2027), highlighted growth in $30K+ customers (22% subscription revenue growth contribution) and promoted AI product Trellis — these initiatives aim to lift enterprise ARPU and margins over time. Quiver: Targets 30% Rule of 40
• Neutral Sentiment: Earnings call and disclosures provide detail but mixed signals — transcripts and slide deck show recurring GAAP losses alongside improving non‑GAAP profitability and higher deferred revenue/RPO, giving investors both runway and execution risk to weigh. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Analysts pared targets and some issued downgrades after the print — KeyCorp cut its target to $6 and moved to underweight, Canaccord trimmed its target to $9 (hold), and Needham sharply reduced a prior $32 target to $14 (still buy); the headline KeyCorp move and mixed analyst views are likely driving near‑term selling pressure. These Analysts Cut Their Forecasts On Sprout Social After Q4 Earnings (Benzinga)
• Negative Sentiment: Underlying fundamentals still show GAAP losses and retention headwinds — Sprout reported a GAAP net loss, negative net margin and dollar‑based net retention of 100% (down from 104%), which keeps execution risk and future growth sustainability on investors’ radar. Quiver: Financial & Customer Metrics
• Negative Sentiment: Insider and institutional flows look unfavorable in recent filings — Quiver/other summaries show multiple insider sales and notable institutional reductions by some large holders, which can amplify downside momentum even when results beat. Quiver: Insider & Institutional Activity

Institutional Investors Weigh In On Sprout Social

Institutional investors have recently added to or reduced their stakes in the business. Quadrant Capital Group LLC acquired a new position in shares of Sprout Social during the fourth quarter worth $28,000. Summit Securities Group LLC increased its holdings in Sprout Social by 399.0% in the fourth quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock valued at $28,000 after purchasing an additional 2,015 shares during the period. Quarry LP raised its position in 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 purchasing an additional 2,745 shares during the last quarter. Kestra Advisory Services LLC bought a new position in Sprout Social during the 4th quarter worth $54,000. Finally, Tower Research Capital LLC TRC lifted its holdings in Sprout Social by 55.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,496 shares of the company’s stock worth $115,000 after buying an additional 1,962 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.