Sprout Social (NASDAQ:SPT) Updates Q1 2026 Earnings Guidance

Sprout Social (NASDAQ:SPT) issued an update on its first quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.150-0.160 for the period, compared to the consensus earnings per share estimate of 0.040. The company issued revenue guidance of $119.9 million-$120.7 million, compared to the consensus revenue estimate of $118.8 million. Sprout Social also updated its FY 2026 guidance to 0.880-0.970 EPS.

Analysts Set New Price Targets

SPT has been the subject of a number of research analyst reports. KeyCorp lowered their price target on Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a report on Friday. Wall Street Zen cut shares of Sprout Social from a “buy” rating to a “hold” rating in a research report on Saturday. Jefferies Financial Group lowered their target price on shares of Sprout Social from $15.00 to $12.00 and set a “buy” rating for the company in a research note on Tuesday, February 3rd. Canaccord Genuity Group reiterated a “hold” rating and set a $9.00 price target (down from $16.00) on shares of Sprout Social in a research report on Friday. Finally, Barclays reduced their price target on shares of Sprout Social from $26.00 to $13.00 and set an “overweight” rating on the stock in a research note on Monday, January 12th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Sprout Social has an average rating of “Hold” and an average price target of $15.11.

Sprout Social Trading Down 9.3%

Shares of SPT stock opened at $6.45 on Friday. The stock has a market capitalization of $381.77 million, a P/E ratio of -8.72 and a beta of 0.90. Sprout Social has a fifty-two week low of $6.03 and a fifty-two 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. The company has a 50 day moving average price of $9.12 and a 200 day moving average price of $11.13.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.20 EPS for the quarter, beating the consensus estimate of $0.16 by $0.04. The company had revenue of $120.89 million during the quarter, compared to analysts’ expectations of $118.68 million. Sprout Social had a negative net margin of 9.47% and a negative return on equity of 16.51%. 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. Equities research analysts predict that Sprout Social will post -0.99 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Aaron Edward Frederick Rankin acquired 90,661 shares of the firm’s stock in a transaction dated Wednesday, December 17th. The stock was acquired at an average price of $11.14 per share, for a total transaction of $1,009,963.54. Following the purchase, the director owned 114,969 shares of the company’s stock, valued at $1,280,754.66. This represents a 372.97% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Ryan Paul Barretto acquired 93,984 shares of the stock in a transaction dated Friday, January 9th. The shares were bought at an average cost of $10.67 per share, with a total value of $1,002,809.28. Following the completion of the transaction, the chief executive officer owned 875,256 shares of the company’s stock, valued at approximately $9,338,981.52. This represents a 12.03% increase in their position. The SEC filing for this purchase provides additional information. 10.12% of the stock is currently owned by insiders.

More Sprout Social News

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

A number of large investors have recently modified their holdings of SPT. Quadrant Capital Group LLC acquired a new stake in shares of Sprout Social in the 4th quarter valued at $28,000. Summit Securities Group LLC grew its stake in shares of Sprout Social by 399.0% during the fourth quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock worth $28,000 after purchasing an additional 2,015 shares in the last quarter. Quarry LP raised its stake in Sprout Social by 264.2% in the third quarter. Quarry LP now owns 3,784 shares of the company’s stock valued at $49,000 after buying an additional 2,745 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in Sprout Social in the fourth quarter valued at $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 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.