Upwork (NASDAQ:UPWK) Stock Price Up 8.8% on Better-Than-Expected Earnings

Upwork Inc. (NASDAQ:UPWK)’s share price rose 8.8% on Monday following a better than expected earnings announcement. The stock traded as high as $9.87 and last traded at $9.9550. 1,358,614 shares were traded during mid-day trading, a decline of 61% from the average session 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, topping the consensus estimate of $0.31 by $0.09. Upwork had a net margin of 13.53% and a return on equity of 17.28%. The business had revenue of $185.60 million during the quarter, compared to analysts’ expectations of $180.22 million.

Key Stories Impacting Upwork

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

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. BTIG Research reiterated a “neutral” rating on shares of Upwork in a research report on Tuesday. UBS Group boosted their price objective on shares of Upwork from $9.00 to $10.00 and gave the company a “neutral” rating in a research report on Tuesday. Weiss Ratings restated a “sell (d+)” rating on shares of Upwork in a research note on Tuesday, October 27th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $8.00 target price on shares of Upwork in a report on Tuesday. Finally, Canaccord Genuity Group reduced their target price on Upwork from $10.00 to $9.00 and set a “hold” rating on the stock in a report on Wednesday, August 12th. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Upwork presently has a consensus rating of “Hold” and a consensus price target of $13.55.

Insiders Place Their Bets

In other news, COO Anthony Kappus sold 45,732 shares of the stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $8.45, for a total value of $386,435.40. Following the completion of the transaction, the chief operating officer owned 76,342 shares of the company’s stock, valued at approximately $645,089.90. This represents a 37.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Hayden Brown sold 73,241 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $8.43, for a total transaction of $617,421.63. Following the completion of the sale, the chief executive officer owned 771,076 shares in the company, valued at approximately $6,500,170.68. The trade was a 8.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $1,509,462. 4.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Upwork

Several institutional investors and hedge funds have recently added to or reduced their stakes in UPWK. Dimensional Fund Advisors LP raised its position in Upwork by 26.5% in the first quarter. Dimensional Fund Advisors LP now owns 3,715,616 shares of the company’s stock valued at $40,720,000 after purchasing an additional 779,506 shares during the last quarter. Rice Hall James & Associates LLC bought a new stake in shares of Upwork during the second quarter worth about $23,214,000. Principal Financial Group Inc. grew its holdings in shares of Upwork by 13.8% during the first quarter. Principal Financial Group Inc. now owns 1,097,681 shares of the company’s stock worth $12,031,000 after purchasing an additional 133,078 shares during the last quarter. Pacer Advisors Inc. grew its holdings in shares of Upwork by 7,074.5% during the first quarter. Pacer Advisors Inc. now owns 726,780 shares of the company’s stock worth $7,966,000 after purchasing an additional 716,650 shares during the last quarter. Finally, Squarepoint Ops LLC increased its stake in shares of Upwork by 169.2% in the second quarter. Squarepoint Ops LLC now owns 737,234 shares of the company’s stock valued at $6,163,000 after buying an additional 463,348 shares during the period. Institutional investors own 77.71% of the company’s stock.

Upwork Stock Up 4.0%

The company has a 50 day moving average price of $8.69 and a 200-day moving average price of $10.60. The company has a market cap of $1.29 billion, a price-to-earnings ratio of 12.75 and a beta of 1.03.

About Upwork

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.