Upwork (NASDAQ:UPWK) Shares Climb 8.8% on Better-Than-Expected Earnings

Upwork Inc. (NASDAQ:UPWK)’s share price traded up 8.8% on Monday following a stronger than expected earnings report. The company traded as high as $9.87 and last traded at $9.9550. 1,358,614 shares were traded during trading, a decline of 61% from the average daily volume of 3,520,547 shares. The stock had previously closed at $9.15.

The company reported $0.40 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.09. The firm had revenue of $185.60 million for the quarter, compared to analyst estimates of $180.22 million. Upwork had a net margin of 13.53% and a return on equity of 17.28%.

Upwork News Summary

Here are the key news stories impacting Upwork this week:

• Positive Sentiment: Upwork reported Q3 adjusted EPS of $0.40, ahead of the $0.31 consensus, and revenue of $185.6 million, above the $180.2 million estimate. It raised its 2026 EPS outlook to $1.45–$1.47, versus the $1.40 consensus; revenue guidance of $742–$750 million was broadly in line with expectations. The earnings beat and higher profit outlook helped lift shares after the report. Article: Upwork surges on earnings beat and solid guidance
• Positive Sentiment: Upwork is expanding its enterprise offering through Lifted’s acquisition of WorkMotion; Business Plus revenue grew 120% year over year in Q3. The company is also developing tools that connect its freelance marketplace with AI platforms, potentially supporting future growth. Article: Upwork: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: UBS raised its price target from $9 to $10 but maintained a Neutral rating. RBC also reaffirmed Sector Perform with an $8 target, signaling that some analysts remain cautious about valuation and prospects. Article: UBS Group rating and price target
• Negative Sentiment: Q4 EPS guidance of $0.30–$0.32 came in below the $0.35 consensus, and reports noted that revenue continued to contract year over year despite beating estimates. A bearish analysis also questioned the company’s long-term relevance amid industry headwinds. Article: Upwork: Short-Term Survival Doesn’t Mean Long-Term Relevance

Wall Street Analyst Weigh In

Several research analysts recently issued reports on UPWK shares. BTIG Research reaffirmed a “neutral” rating on shares of Upwork in a research report on Tuesday. Royal Bank Of Canada reiterated a “sector perform” rating and set a $8.00 price target on shares of Upwork in a report on Tuesday. Needham & Company LLC increased their price target on Upwork from $11.00 to $13.00 and gave the company a “buy” rating in a research report on Tuesday. Scotiabank raised their price objective on Upwork from $8.00 to $10.00 and gave the company a “sector perform” rating in a research note on Tuesday. Finally, The Goldman Sachs Group set a $11.50 price objective on shares of Upwork in a report on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $13.55.

Insider Activity at Upwork

In related news, CFO Erica Gessert sold 22,844 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $8.43, for a total transaction of $192,574.92. Following the completion of the sale, the chief financial officer owned 364,789 shares in the company, valued at approximately $3,075,171.27. This trade represents a 5.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Anthony Kappus sold 45,732 shares of the business’s stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $8.45, for a total transaction of $386,435.40. Following the completion of the transaction, the chief operating officer owned 76,342 shares in the company, valued at approximately $645,089.90. The trade was a 37.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 178,868 shares of company stock worth $1,509,462. 4.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On Upwork

Several institutional investors have recently bought and sold shares of UPWK. Rockefeller Capital Management L.P. raised its stake in shares of Upwork by 434.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,881 shares of the company’s stock valued at $37,000 after buying an additional 1,529 shares during the period. GAMMA Investing LLC lifted its position in shares of Upwork by 43.7% during the 2nd quarter. GAMMA Investing LLC now owns 4,575 shares of the company’s stock valued at $38,000 after buying an additional 1,392 shares during the last quarter. Covestor Ltd grew its stake in shares of Upwork by 40.7% during the 3rd quarter. Covestor Ltd now owns 5,356 shares of the company’s stock worth $44,000 after acquiring an additional 1,550 shares during the period. IFP Advisors Inc grew its stake in shares of Upwork by 123.0% during the 3rd quarter. IFP Advisors Inc now owns 8,944 shares of the company’s stock worth $73,000 after acquiring an additional 4,933 shares during the period. Finally, Summit Global Investments bought a new position in shares of Upwork during the 2nd quarter worth $89,000. Hedge funds and other institutional investors own 77.71% of the company’s stock.

Upwork Trading Up 4.0%

The firm has a fifty day moving average of $8.69 and a two-hundred day moving average of $10.60. The company has a market cap of $1.29 billion, a PE ratio of 12.75 and a beta of 1.03.

Upwork Company Profile

Upwork Inc operates a global work marketplace that connects businesses with independent professionals and agencies. Clients use the platform to find, evaluate, hire and manage talent for projects across areas such as software development, design, marketing, writing, consulting, customer support and administrative services.

The company provides tools for talent discovery, project collaboration, communications, time tracking, contract management and payments. Its offerings serve both individual clients and larger organizations, with features designed to support recurring engagements, contingent-work programs and enterprise talent management.

Upwork was formed in 2015 through the merger of Elance and oDesk, two online freelance-work platforms, and began trading publicly on the Nasdaq stock exchange in 2018.