Why Is Upwork Stock Sinking Tuesday?

by | Feb 10, 2026 | General

Upwork Inc. (NASDAQ:UPWK) stock tumbled in premarket trading on Tuesday after the freelancing platform issued disappointing first-quarter guidance despite beating Wall Street estimates for its fourth-quarter results.

Q4 Results Top Expectations

Upwork reported fourth-quarter revenue of $198.41 million, beating analyst estimates of $197.52 million. The company posted adjusted earnings of 36 cents per share, surpassing estimates of 31 cents per share.

Soft Q1 Outlook Weighs On Sentiment

Upwork expects first-quarter revenue of $192 million to $197 million versus analyst estimates of $200.83 million. The company anticipates first-quarter adjusted earnings of 26 cents to 28 cents per share, versus estimates of 34 cents per share.

For full-year 2026, Upwork projects revenue of $835 million to $850 million versus estimates of $836.15 million, with adjusted earnings of $1.43 to $1.48 per share versus estimates of $1.42 per share.

Technical Analysis

Currently, the stock is trading 28.1% below its 20-day simple moving average (SMA) and 24% below its 100-day SMA, indicating significant weakness in the short to medium term. Shares have decreased 19.30% over the past 12 months and are currently positioned closer to their 52-week lows than highs.

The RSI is at 44.50, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum, reflecting uncertainty in the stock’s price action.

Key Support: $12.50

Key Resistance: $16.00

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the May 4, 2026, earnings report.

  • EPS Estimate: 28 cents (Down from 34 cents YoY)
  • Revenue Estimate: $197.85 million (Up from $192.71 million YoY)
  • Valuation: P/E of 10.8x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $21.22. Recent analyst moves include:

  • Jefferies: Buy (Raises Target to $27.00) (Jan. 5)
  • UBS: Buy (Raises Target to $24.00) (Nov. 19, 2025)
  • Citizens: Market Outperform (Maintains Target to $27.00) (Nov. 19, 2025)

UPWK Price Action: Upwork shares were down 23.68% at $14.34 during premarket trading on Tuesday, according to Benzinga Pro data.

Image via Shutterstock