New York, Feb 11, 2026, 06:22 EST — Premarket
- Upwork shares held steady in premarket trading, following a sharp slide in the previous session.
- The company’s bleak forecast for first-quarter revenue and profit triggered the selloff that followed the results.
- Analysts are lowering their targets, citing worries about the company’s ability to pull off its enterprise strategy.
Upwork Inc shares slipped 0.1% to $15.20 premarket Wednesday, following a sharp 19% drop at the close in the previous session. 1
This is significant: the company wants investors to buy into its message that 2026 is shaping up as a rebound year—even though the immediate forecast calls for a weaker March quarter.
It’s a tricky time for online work platforms. Clients are tightening budgets, while automation is starting to chip away at some bread-and-butter freelance categories.
Upwork posted fourth-quarter revenue of $198.4 million late Monday, with GAAP net income coming in at $15.6 million. Looking ahead, the company is guiding for first-quarter revenue between $192 million and $197 million, and expects non-GAAP diluted EPS in the $0.26 to $0.28 range. 2
Upwork shares tumbled over 20% in after-hours trading after the company issued a first-quarter forecast that fell short of Wall Street’s expectations, overshadowing its results. The company projected full-year revenue between $835 million and $850 million, which was roughly in line with what analysts had been looking for. 3
Upwork is pitching this year as a pivot to AI-driven projects and deeper enterprise focus. CEO Hayden Brown described the company’s overhaul as setting it up for “human-plus-AI collaboration.” CFO Erica Gessert, addressing investors, pointed to 2026 as the target for “a year of accelerating growth.” 2
During the earnings call, executives said the first quarter will see higher expenses, with integration efforts and investments in Lifted—its enterprise arm—driving much of that. They also pointed to persistent headwinds in areas like writing and translation, where AI adoption continues to bite. 4
RBC Capital has lowered its price target on the stock to $20, down from $24, while maintaining a sector perform rating. The firm pointed to increased risks around execution and noted the company’s greater dependence on a second-half rebound following the enterprise transition. 5
Citizens cut its price target on Upwork to $22, down from $27, citing uncertainty around when enterprise revenue will kick in as the company adjusts its strategy. 6
UBS lowered its price target to $23, down from $26, though the firm maintained its buy rating. Analysts highlighted improving gross services value and a more favorable outlook for the second half, but noted it may be a while before confidence returns. 7
Bulls face a clear risk here. Should enterprise conversion stall beyond projections, what looks like a first-quarter trough could quickly resemble falling demand. If that happens, Upwork’s bet on a second-half rebound might not do much to keep sellers from pressing their case.
Investors want to see signs that client trends have leveled off and that Upwork’s enterprise pipeline is actually generating revenue. The company’s next earnings report lands May 6. 8
