Sprout Social (SPT) Tops Q3 Earnings and Revenue Estimates

Core Insights - Sprout Social (SPT) reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and up from $0.13 per share a year ago, representing an earnings surprise of +43.75% [1] - The company achieved revenues of $115.59 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.68% and increasing from $102.64 million year-over-year [2] - Sprout Social has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The earnings surprise of +43.75% indicates strong performance relative to expectations [1] - The company has shown a consistent trend of exceeding revenue estimates, achieving this four times in the last four quarters [2] - Current consensus EPS estimate for the upcoming quarter is $0.19, with expected revenues of $118.75 million, and for the current fiscal year, the estimate is $0.74 on revenues of $454.61 million [7] Market Position - Sprout Social shares have declined approximately 66.8% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The Zacks Industry Rank places the Internet - Services sector in the top 38% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend prior to the earnings release was mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market [6]