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Procore Technologies
(NYSE:PCOR)
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Rating:73Outperform
Price Target:
$70.00
▲(9.89% Upside)
Action:Upgraded
Date:10/08/26
PCOR scores well primarily due to strong cash generation, low leverage, and a very positive earnings call with raised guidance and clear margin/free-cash-flow expansion. The score is held back by mixed technical signals and limited valuation support from a negative P/E and no dividend yield, alongside the ongoing risk that operating profitability is not yet consistently established.
Positive Factors
Recurring SaaS Revenue
The subscription model creates recurring revenue tied to customer usage and renewals, supporting visibility across the next several quarters. Procore can also expand accounts through additional products, users, and projects, while integrations may increase platform stickiness and retention.
Negative Factors
Operating Profitability Not Yet Consistent
Although margins and losses have improved, negative TTM EBIT shows that the core business has not yet converted its strong gross economics into consistent operating profit. Continued execution is required for expected margin gains to become durable earnings rather than primarily an outlook-driven improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS Revenue
The subscription model creates recurring revenue tied to customer usage and renewals, supporting visibility across the next several quarters. Procore can also expand accounts through additional products, users, and projects, while integrations may increase platform stickiness and retention.
Read all positive factors
Procore Technologies Key Performance Indicators (KPIs)
Any
Organic Customer Count
Shows the number of customers acquired without paid marketing, indicating the strength of the product's appeal and word-of-mouth growth potential.
Shows the number of customers acquired without paid marketing, indicating the strength of the product's appeal and word-of-mouth growth potential.
Data provided by:
The Fly
The FlyProcore Technologies (PCOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.57B
Dividend YieldN/A
Average Volume (3M)2.93M
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth15.41%
EPS Growth73.03%
CountryUS
Employees4,421
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.26
Shares Outstanding151,955,340
10 Day Avg. Volume3,097,910
30 Day Avg. Volume2,929,118
Financial Highlights & Ratios
PEG Ratio15.63
Price to Book (P/B)8.66
Price to Sales (P/S)8.26
P/FCF Ratio50.81
Enterprise Value/Market Cap0.58
Enterprise Value/Revenue3.93
Enterprise Value/Gross Profit4.92
Enterprise Value/Ebitda92.44
Forecast
1Y Price Target
$70.57Price Target Upside10.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)1.68
Revenue Forecast (FY)$1.51B
Procore Technologies Business Overview & Revenue Model
Company Description
Procore Technologies, Inc. delivers a comprehensive, cloud-based platform designed for construction management, along with accompanying software solutions, serving clients both in the United States and globally. This platform empowers a diverse ra...
How the Company Makes Money
Procore primarily makes money by selling access to its cloud software platform on a subscription basis (software-as-a-service). Customers pay recurring fees to use Procore’s solutions, generally under contracted subscription arrangements that are ...
Procore Technologies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was strongly positive, characterized by 15.8% year-over-year revenue growth, substantial margin and free cash flow expansion, raised FY 2026 guidance, first-quarter GAAP operating profitability, strong large-deal and data center momentum, and early progress in Procore AI. Management also expressed confidence in the DroneDeploy acquisition and longer-term profitable growth strategy. The primary challenges discussed were market deceleration in residential and multifamily construction, weakness in manufacturing, the industry labor shortage, relatively early international penetration, and the acquisition's near-term margin headwind and interim bridge financing.Positive Updates
Strong Q2 Revenue Growth and Profitability
Q2 revenue was $375 million, up 15.8% year-over-year, while non-GAAP operating income was $81 million and non-GAAP operating margin was 21.5%, up 800 basis points year-over-year. The company also delivered its first quarter of GAAP operating profitability.
Negative Updates
Construction Market Growth Deceleration
Procore's core U.S. residential and multifamily construction market has experienced significant growth deceleration over the past two and a half years, leading to negative growth in late 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Revenue Growth and Profitability
Q2 revenue was $375 million, up 15.8% year-over-year, while non-GAAP operating income was $81 million and non-GAAP operating margin was 21.5%, up 800 basis points year-over-year. The company also delivered its first quarter of GAAP operating profitability.
Read all positive updates
Company Guidance
For the third quarter of 2026, the company expects revenue between $382 million and $384 million, representing year-over-year growth of 13.3% at the high end, and Q3 non-GAAP operating margin is expected to be between 19% to 19.5%; for the full year 2026, it is raising revenue guidance to a range of $1.51 billion to $1.514 billion, representing total year-over-year growth of 14.5% at the high end, non-GAAP operating margin guidance to be between 18.5% and 19%, implying year-over-year margin expansion of 440 to 490 basis points, and free cash flow margin guidance to 19.5%, implying year-over-year free cash flow margin expansion of approximately 310 basis points. This outlook represents the organic business and does not reflect any contributions from DroneDeploy, and FY 2027 guidance for non-GAAP operating margin is 25%, which would represent nearly 1,100 basis points of improvement versus FY 2025; revenue guidance for FY 2027 is not yet available and will come in the normal timeframe early next year.Procore Technologies Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.32B | 1.15B | 950.01M | 720.20M | 514.82M |
| Gross Profit | 1.13B | 1.04B | 946.10M | 775.55M | 571.79M | 416.51M |
| EBITDA | 60.43M | 17.75M | -12.53M | -114.83M | -221.29M | -250.22M |
| Net Income | -38.88M | -100.78M | -105.96M | -189.69M | -286.93M | -265.17M |
Balance Sheet | ||||||
| Total Assets | 2.24B | 2.24B | 2.10B | 1.89B | 1.74B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 655.91M | 768.49M | 775.39M | 677.95M | 582.21M | 586.11M |
| Total Debt | 58.81M | 79.20M | 80.02M | 93.92M | 94.32M | 96.76M |
| Total Liabilities | 965.29M | 976.80M | 813.02M | 737.96M | 623.63M | 501.37M |
| Stockholders Equity | 1.28B | 1.26B | 1.29B | 1.16B | 1.12B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 293.73M | 215.11M | 177.03M | 47.01M | -36.82M | 9.10M |
| Operating Cash Flow | 366.64M | 298.87M | 196.17M | 92.02M | 12.61M | 36.73M |
| Investing Cash Flow | -23.14M | -70.50M | -150.11M | -76.06M | -340.48M | -541.77M |
| Financing Cash Flow | -137.71M | -177.50M | 36.24M | 41.16M | 38.65M | 711.83M |
Procore Technologies Technical Analysis
Positive
63.70
Price Trends
56.58
Positive
51.58
Positive
53.63
Positive
Market Momentum
2.05
Negative
72.80
Negative
88.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PCOR, the sentiment is Positive. The current price of 63.7 is above the 20-day moving average (MA) of 55.81, above the 50-day MA of 56.58, and above the 200-day MA of 53.63, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 72.80 is Negative, neither overbought nor oversold. The STOCH value of 88.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PCOR.
Procore Technologies Risk Analysis
Procore Technologies disclosed 42 risk factors in its most recent earnings report. Procore Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Procore Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.46B | 44.16 | 32.03% | ― | 19.96% | -15.24% | |
75 Outperform | $8.40B | -63.55 | -8.33% | ― | 22.90% | 61.40% | |
73 Outperform | $9.57B | -241.75 | -3.13% | ― | 15.41% | 73.03% | |
73 Outperform | $3.68B | -92.29 | -10.77% | ― | 14.62% | -120.98% | |
65 Neutral | $11.99B | 43.15 | 24.10% | 0.71% | 12.85% | 14.73% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $2.75B | -18.20 | -105.68% | ― | 9.48% | 26.94% |
* Technology Sector Average
PCOR
Procore Technologies
63.00
-11.45
-15.38%
APPF
AppFolio
210.62
-34.65
-14.13%
BSY
Bentley Systems
39.70
-12.11
-23.37%
ASAN
Asana
12.02
-2.56
-17.56%
INTA
Intapp
47.99
8.31
20.94%
TTAN
ServiceTitan, Inc. Class A
87.06
-12.94
-12.94%
Procore Technologies Corporate Events
Business Operations and StrategyM&A Transactions
Procore Technologies Completes DroneDeploy Acquisition to Enhance Platform
Positive
Sep 9, 2026
On July 27, 2026, Procore Technologies entered into a merger agreement to acquire DroneDeploy, a Delaware-based provider of drone imaging and data solutions, through a newly formed subsidiary. DroneDeploy was designated to survive the transaction ...
Business Operations and StrategyStock BuybackM&A TransactionsPrivate Placements and Financing
Procore Technologies Prices $950 Million Convertible Notes Offering
Positive
Aug 6, 2026
On August 6, 2026, Procore Technologies completed a $950 million private offering of 0.00% convertible senior notes due 2031, issued as senior unsecured obligations with complex conversion, redemption and fundamental change protections for investo...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Procore to Acquire DroneDeploy, Expanding AI Capabilities
Positive
Jul 29, 2026
On July 27, 2026, Procore Technologies entered into a definitive agreement to acquire DroneDeploy for approximately $845 million in cash, with the transaction expected to close by the end of 2026 subject to customary shareholder and regulatory app...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.