PROCORE TECHNOLOGIES INC 2026 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance: Procore reported a strong Q2 2026, with revenue of $375 million, up 15.8% year over year and about 2.5% above the high end of guidance. Non-GAAP operating income was $81 million, with a 21.5% margin, up 800 basis points year over year. The company also delivered its first quarter of GAAP operating profitability and generated $65 million in free cash flow, up 507% year over year. International revenue grew 23% year over year, and CRPO growth accelerated by 100 basis points.

Company Outlook & Strategy: Management raised full-year 2026 guidance for revenue to $1.51 billion to $1.514 billion, non-GAAP operating margin to 18.5% to 19%, and free cash flow margin to 19.5%. For Q3, Procore guided to revenue of $382 million to $384 million and non-GAAP operating margin of 19% to 19.5%. Executives emphasized a strategy centered on AI-native construction management, profitable growth, and expanding operating leverage. They also set FY 2027 non-GAAP operating margin guidance at 25%.

Key Industry Trends: Management highlighted continued weakness in parts of the construction end market, especially U.S. residential and multifamily, as well as softness in certain sub-sectors like manufacturing. Offsetting this, data center construction was described as exceptionally strong, driven by AI-related investment, with Procore seeing major traction in the segment. Broader labor shortages in construction were also cited as a key industry issue supporting demand for AI-driven automation.

Operational Highlights: Procore won several large strategic deals, including the King Salman International Airport project in Saudi Arabia and its largest EMEA contract to date, a nearly $7 million agreement with a hyperscale AI data center builder. The company expanded Procore AI, now with 20 construction-specific AI agents, and saw early adoption from customers such as Haskell, Level 10, and Consigli. The Datagrid acquisition was integrated quickly, and the DroneDeploy acquisition was announced as a complementary addition to enhance visual intelligence, reality capture, and multimodal AI workflows.

Challenges & Risks: Key risks include uneven end-market demand, weakness in some construction sub-sectors, and continued labor shortages across the industry. Management also noted the near-term margin headwind from the DroneDeploy acquisition, though it said the deal would not change FY 2026 or FY 2027 margin guidance. Funding and capital structure execution for the acquisition remain a pending item.

Key Analyst Questions & Responses: The transcript provided does not include the actual Q&A discussion beyond the start of the first analyst question, so no substantive analyst questions or management responses were captured.