Goldman Sachs has updated its financial outlook for Upwork Inc. (UPWK), setting a new price target of $27 and sustaining its 'Buy' recommendation. This decision stems from Upwork's robust fourth-quarter results, which saw revenue and adjusted EBITDA aligning with or slightly surpassing initial forecasts. The company's leadership emphasized its forward-looking strategy centered on artificial intelligence integration, aiming to capture a substantial share of the expanding digital freelance market.
Financial Analysts Review Upwork's Latest Performance and Future Prospects
On Tuesday, February 17, 2026, investment banking giant Goldman Sachs announced a revised price target for Upwork Inc. (NASDAQ:UPWK), moving it to $27 from the previous $28, while steadfastly retaining a 'Buy' rating. The firm acknowledged Upwork's commendable fourth-quarter earnings report, where key financial indicators like revenue and adjusted EBITDA either met or slightly exceeded the higher end of prior guidance. This positive assessment was largely based on management’s recent earnings release and subsequent forward-looking statements.
However, not all financial institutions shared an equally optimistic near-term view. Just a day prior, on Monday, February 10, 2026, Scotiabank tempered its price target for Upwork, lowering it from $17 to $15, and maintained a 'Sector Perform' rating. Scotiabank expressed a desire for more definitive proof that AI technologies are actively broadening Upwork's user base, rather than merely intensifying current engagement levels. Concurrently, UBS also adjusted its price target downwards from $26 to $23 but held onto its 'Buy' rating, characterizing the fourth-quarter results and first-quarter guidance as somewhat 'underwhelming.'
Upwork's official fourth-quarter revenue, reported on February 10, 2026, reached $198.4 million, modestly exceeding the consensus estimate of $197.52 million. CEO Hayden Brown articulated that 2025 marked a pivotal year for the company, focusing on restructuring for 'human-plus-AI collaboration.' This strategic realignment positions Upwork to capitalize on what she identified as a monumental $1.3 trillion market opportunity within flexible digital knowledge work. Looking ahead to 2026, the company projects revenue in the range of $835 million to $850 million, a forecast that closely aligns with the market's consensus of $838.24 million.
Upwork Inc. operates a prominent global work marketplace, facilitating connections between businesses and independent professionals or agencies across a diverse array of service sectors.
The Evolving Landscape of Digital Work and Investment Strategy
The recent analyses of Upwork's performance by leading financial firms underscore the dynamic and increasingly competitive environment within the digital work marketplace. While some concerns linger regarding the immediate impact of AI on user base expansion, Upwork's strategic embrace of AI-driven collaboration points towards a forward-thinking approach that could redefine the future of freelance work. Investors are now tasked with weighing the sustained confidence from firms like Goldman Sachs against the more cautious perspectives, considering the long-term potential of a company actively adapting to technological shifts in a vast and growing market.