Upwork (NASDAQ:UPWK) Posts Earnings Results, Beats Estimates By $0.10 EPS

07 May 2026, 19:52 by Jessica Moore · The Cerbat Gem

Upwork (NASDAQ:UPWK – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.10, FiscalAI reports. The company had revenue of $195.48 million during the quarter, compared to the consensus estimate of $195.90 million. Upwork had a return on equity of 18.76% and a net margin of 14.65%. Upwork updated its FY 2026 guidance to 1.500-1.550 EPS and its Q2 2026 guidance to 0.350-0.370 EPS.

Here are the key takeaways from Upwork’s conference call:

Company lowered and widened full‑year 2026 revenue guidance to $760M–$790M and expects Q2 revenue of $187M–$193M, citing geopolitical headwinds and softness in the smallest contracts.
Upwork raised its full‑year adjusted EBITDA outlook to $250M–$260M (≈33% margin) and now expects to reach a 35% adjusted EBITDA margin in H2 after announcing ~$70M in annualized cost savings and a ~24% workforce reduction (one‑time charges of $16M–$23M).
An updated LLM‑based analysis indicates only about 10% of GSV is AI‑at‑risk (down from 11%), while AI‑related work is growing rapidly (>$300M annualized GSV, >40% YoY), and Upwork is rolling out AI products (Uma, ChatGPT app, human‑supervised agents) to capture that demand.
Weakness is concentrated in very small businesses and sub‑$500 contracts—areas most affected by inflation, tariffs, energy costs, and higher rates—so marketplace volumes decelerated in late Q1 and management conservatively baked further downside into 2026 guidance.
Strength in higher‑value segments continues—Business Plus GSV grew 34% QoQ, Lifted’s enterprise pipeline expanded (3x for new clients, 9x for existing) with migrations starting in June, and ~20% of net new enterprise pipeline is AI‑related.

Upwork Price Performance

Shares of NASDAQ UPWK traded up $0.53 during midday trading on Thursday, reaching $10.61. 7,947,853 shares of the stock traded hands, compared to its average volume of 3,662,660. The stock has a market capitalization of $1.31 billion, a PE ratio of 12.63 and a beta of 1.07. Upwork has a one year low of $10.02 and a one year high of $22.84. The company’s 50 day moving average is $11.56 and its 200 day moving average is $16.06.

Key Headlines Impacting Upwork

Here are the key news stories impacting Upwork this week:

Positive Sentiment: Q1 EPS beat consensus — Upwork reported EPS above Street expectations and reiterated/raised full‑year adjusted EBITDA and provided FY EPS guidance that topped consensus, which supports profitability improvement. Upwork Reports First Quarter 2026 Financial Results
Neutral Sentiment: Top‑line essentially flat — Q1 revenue was roughly in line with prior quarter/consensus (about $195M), showing slow year‑over‑year growth; some operational metrics (GSV per active client) improved modestly from SMB and AI work categories. Upwork (NASDAQ:UPWK) Reports Q1 CY2026 In Line With Expectations But Stock Drops 19.3%
Negative Sentiment: Softer revenue guidance — Management cut Q2 and FY revenue targets (Q2: $187–$193M vs. consensus ~ $204M; FY: $760–$790M vs. consensus ~ $841M), signaling slower demand and driving the sharp after‑hours selloff. Upwork Stock Plunges On Q1 Earnings, Softer Revenue Outlook, Restructuring Plan
Negative Sentiment: Operational and cash flow softness in certain reporting — third‑party summaries show declines in operating profit, net income and operating cash flow year‑over‑year, which may heighten near‑term investor concern about growth durability. Upwork Inc. (UPWK) Stock Falls on Q1 2026 Earnings
Negative Sentiment: Insider selling and mixed institutional moves — notable insider sales over recent months are flagged in data services, which can amplify negative sentiment despite some large institutional buys reported in Q4 2025. Upwork Inc. (UPWK) Stock Falls on Q1 2026 Earnings

Analyst Ratings Changes

UPWK has been the subject of a number of recent research reports. The Goldman Sachs Group reiterated a “buy” rating and set a $27.00 price objective on shares of Upwork in a research note on Tuesday, February 10th. Roth Mkm upped their price target on Upwork from $22.00 to $23.00 and gave the stock a “buy” rating in a research note on Tuesday, February 10th. Needham & Company LLC restated a “buy” rating and issued a $25.00 price target on shares of Upwork in a research note on Tuesday, February 10th. Wall Street Zen upgraded Upwork from a “hold” rating to a “buy” rating in a research note on Saturday, February 21st. Finally, Zacks Research downgraded Upwork from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $22.60.

Get Our Latest Research Report on UPWK

Upwork declared that its board has approved a share repurchase plan on Wednesday, February 18th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the company to purchase up to 18% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, CFO Erica Gessert sold 26,292 shares of the stock in a transaction on Wednesday, February 18th. The stock was sold at an average price of $13.80, for a total transaction of $362,829.60. Following the sale, the chief financial officer owned 298,386 shares in the company, valued at approximately $4,117,726.80. This represents a 8.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Hayden Brown sold 123,152 shares of the stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $13.80, for a total value of $1,699,497.60. Following the sale, the chief executive officer owned 776,067 shares in the company, valued at $10,709,724.60. The trade was a 13.70% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 235,186 shares of company stock worth $3,156,199. 7.50% of the stock is currently owned by insiders.

Institutional Trading of Upwork

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Caption Management LLC purchased a new stake in Upwork during the 3rd quarter valued at $254,000. CIBC Bancorp USA Inc. purchased a new stake in Upwork during the 3rd quarter valued at $244,000. Caxton Associates LLP purchased a new stake in Upwork during the 2nd quarter valued at $241,000. Cetera Investment Advisers raised its holdings in Upwork by 51.4% during the 2nd quarter. Cetera Investment Advisers now owns 16,363 shares of the company’s stock valued at $220,000 after buying an additional 5,553 shares during the period. Finally, Russell Investments Group Ltd. raised its holdings in Upwork by 85.8% during the 2nd quarter. Russell Investments Group Ltd. now owns 15,850 shares of the company’s stock valued at $213,000 after buying an additional 7,319 shares during the period. Hedge funds and other institutional investors own 77.71% of the company’s stock.

About Upwork

(Get Free Report)

Upwork Inc operates a leading online talent marketplace that connects businesses with independent professionals worldwide. Through its digital platform, the company enables clients across industries—including technology, marketing, creative services and customer support—to source, hire and manage freelance talent on demand. Key features of the Upwork platform include streamlined job posting, proposal evaluation, time-tracking tools, invoicing and secure payment processing, all designed to simplify collaboration between clients and remote workers.

The company traces its roots to the merger of two pioneering freelance marketplaces, Elance (founded in 1998) and oDesk (founded in 2003), which combined in 2015 to form a unified entity.