Procore Technologies, Inc. (PCOR) Earnings & Analysis

Latest quarter

Procore reported Q2 FY2026 revenue of $375.2 million, above the $365.5 million consensus. Adjusted earnings of $0.47 per share also exceeded the $0.41 consensus. Revenue came in above the company’s own guidance of $364.0 million–$366.0 million.

Revenue rose 15.8% from $323.9 million a year earlier. Procore’s filing attributed approximately 88% of the revenue increase to existing customers, including customers that had continued or expanded subscriptions. The filing said customers contributing more than $100,000 in annual recurring revenue rose from 2,517 to 2,871 as of June 30, 2026.

Procore reported diluted earnings of $0.11 per share, compared with a loss of −$0.14 a year earlier. Gross margin rose to 79.9% from 79.1%, while operating margin moved to 1.15% from −9.34%. CFO Rachel Piles said the company recorded its first quarter of GAAP operating profitability. Free cash flow increased to $64.5 million from $10.6 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Ajay Gopal described an uneven construction market: manufacturing was weaker, while data center construction benefited from investment in AI. He said Procore had signed a contract for King Salman International Airport and an agreement with a European company building data centers across several regions. Piles said international revenue grew 23% year over year in Q2, or 19% on a constant-currency basis.

Piles said larger deals contributed to the quarter and that stronger bookings drove most of the acceleration in current remaining performance obligations, or cRPO. Asked about the increase, she said longer contract duration contributed a smaller portion. Procore’s filing cautioned that cRPO growth may not directly correlate with revenue growth as more customers buy multi-year subscriptions.

Gopal said Procore had integrated DataGrid into its platform and made Procore AI generally available. Asked about the sales rollout, he said a limited-availability period helped the company develop starter packs with ready-to-use agents and restricted project usage. He said the broader sales force could now offer the product to customers.

On the proposed $845 million cash acquisition of DroneDeploy, Gopal said its visual capture technology would add a way to collect job-site information for Procore’s AI tools. He said the companies had nearly 600 mutual customers and planned to cross-sell after closing. Piles said Procore had arranged bridge financing for most of the purchase price and expected the transaction to close later in the year.

Asked about AI costs, Piles said Procore was optimizing how it delivers digital coworkers to maintain gross margins. She said the company expected to absorb DroneDeploy’s near-term margin headwind without changing the FY2026 and FY2027 margin outlook. For Q3, Piles said Procore expected revenue between $382 million and $384 million and a non-GAAP operating margin between 19% and 19.5%, excluding DroneDeploy contributions.

Guidance

Piles said Procore raised its FY2026 revenue guidance to $1.51 billion–$1.514 billion. The company also raised its non-GAAP operating margin guidance to 18.5%–19% and its free cash flow margin guidance to 19.5%. Piles said the outlook covered the organic business and excluded contributions from DroneDeploy.