Canaccord Genuity has cut its price target for Upwork Inc. (NASDAQ:UPWK) to $22.00 from $24.00 while retaining a Buy rating following the company’s fourth-quarter report. The updated target aligns closely with an independent Fair Value assessment, which indicates the shares may be slightly undervalued at current levels. Analyst price targets for Upwork span a wide range, from $17.00 to $28.00, reflecting mixed sentiment among the sell-side despite a strong market performance over the past six months.
Over the prior six months the stock has returned 42.67% in price, yet analysts remain divided on the company’s near-term trajectory. Upwork’s fourth-quarter results modestly exceeded expectations on several key metrics, including gross service value (GSV), revenue and adjusted EBITDA. Those beats were accompanied by an encouraging decline in churn - the lowest level recorded in over eight quarters - even as active client counts came in softer than anticipated.
Financially, the company continues to show resilient margins and profitability. Gross profit margin stood at 77.8%, and the business has been profitable on a trailing twelve-month basis. The balance sheet also appears conservative, with more cash than debt, providing a degree of flexibility as Upwork executes on strategic initiatives.
One of the clearest areas of momentum was AI-related work, which grew by more than 50% year-over-year during the quarter and reached an annualized run-rate of roughly $300 million. Subcategories that performed particularly well included Generative AI, Creative Production and AI Integration & Automation, signaling growing demand from clients for specialized AI talent.
Total GSV growth accelerated by roughly 90 basis points quarter-over-quarter, driven in part by robust Enterprise GSV gains in Q4. Management’s new offering, Lifted, has generated a meaningful pipeline and has already secured two clients since launch.
Despite those positives, forward guidance was uneven. First-quarter projections fell short of expectations, while the company’s fiscal 2026 guidance remained broadly consistent with the outlook provided at its November Investor Day. The mixed guidance underscores a degree of near-term uncertainty even as longer-term targets remain intact.
In related news, the company’s reported fourth-quarter 2025 earnings exceeded consensus estimates. Upwork posted adjusted earnings per share of $0.36 versus an expected $0.31, a 16.13% surprise, while revenue came in at $198.4 million compared with estimates of $197.25 million.
Separately, another research firm trimmed its price target on Upwork to $22.00 from $27.00 and maintained a Market Perform rating. That firm cited limited visibility on the timing of enterprise revenue contributions as it transitions its enterprise strategy, a concern that likely informs the more conservative outlook.
Summary
Canaccord’s reduction of Upwork’s price target to $22.00 follows a quarter that delivered modest outperformance across several metrics and notable AI-driven growth, but also revealed softer active client figures and cautious near-term guidance. Analysts’ targets range from $17.00 to $28.00, and another firm has lowered its target and rating over enterprise revenue visibility concerns.