Sprout Social (SPT) Stock Forecast & Price Target

Sprout Social is viewed positively because 3Q26 showed both revenue and profitability leverage, with total revenue of $125.1M beating guidance by $1.4M, non-GAAP operating income up 91.1% to $26.3M, and free cash flow rising 158.1% year over year to $26.7M. Its upmarket shift is strengthening the business, as customers with more than $30K in ARR grew 20% and now represent 61.4% of subscription revenue, while Trellis AI is expanding engagement and creating an early paid monetization path through Trellis Plus. The company’s privileged access to social network data, expanding product suite, and lower share-based compensation support a more durable margin profile and sustainable GAAP profitability.

Sprout Social is viewed negatively because growth appears constrained by weak demand visibility, cautious macro spending, and a product set that many customers still see as mainly a marketing tool with limited broader usage. The excerpts show softer net adds in the $30K-$50K cohort, cRPO of $280.2M below estimates, RPO of $393.9M below expectations, and billings down 0.5% year over year to $116.3M, while management guided to a similar demand backdrop and headwinds in new business and expansion. Although layoffs may lift margins by about $50M, the company’s organic trajectory is only projected in the low-to-mid single digits and 2027 revenue growth was cut to 3.5% from 9.1%, reinforcing the bearish view.