Procore Technologies (5PT) Q2 2026 Earnings Report

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.

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.