Upwork Slashes 2026 Profit and Revenue Outlook, Shares Tumble 12%
UPWK is trading near its 52-week low of $7.44 (15% above the low) on elevated volume (2.5× avg).
Summary
Upwork cut its full-year 2026 adjusted EPS guidance to $1.38-$1.43 from $1.50-$1.55, well below the $1.55 consensus, and lowered revenue guidance to $730M-$750M from $760M-$790M, missing the $776.3M estimate. Q3 guidance also disappointed, with adjusted EPS of $0.31-$0.33 versus the $0.41 estimate and revenue of $176M-$184M against the $193.7M consensus. Management cited near-term AI headwinds pressuring some work categories, even as AI-related services grow. This follows yesterday's Q2 earnings release, where revenue beat but declined 2% YoY, and a 24% workforce reduction announced earlier this year. The stock fell 12.36% to $8.61 on Tuesday, reflecting the sharp guidance reset. The restructuring plan targets $70M in annualized cost savings, with $40M expected in 2026, but the lowered outlook signals deeper demand challenges.
At the time of this announcement, UPWK was trading at $8.54 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $7.44 to $22.84. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.