Procore Technologies (PCOR) Q3 2026 Earnings Report

The call was strongly positive. Procore exceeded the high end of guidance on key Q3 metrics, reported accelerating organic revenue growth, expanded margins, generated strong free cash flow excluding one-time acquisition costs, raised FY 2026 guidance, and reiterated its FY 2027 margin target. The main challenges were the near-term margin and cash flow dilution from DroneDeploy, one-time acquisition costs, early AI product adoption, contract duration that has not yet stabilized, and labor shortages affecting customers. The highlights significantly outweighed the lowlights.

For the fourth quarter, Procore expects reported revenue between $420 million and $422 million, representing year over year growth of 20.9% at the high end, including approximately $19 million of inorganic contribution from DroneDeploy; excluding DroneDeploy, the range is $401 to $403 million, or 15.4% growth at the high end. Q4 non GAAP operating margin is expected to be between 15.5% and 16% on a reported basis. For the full year, reported revenue is expected to be $1.557 to $1.559 billion, representing year over year growth of approximately 17.9% at the high end, including approximately $24 million of inorganic contribution from DroneDeploy; excluding DroneDeploy, that is a raise of approximately $21 million at the high end. Procore is raising full-year non GAAP operating margin guidance by 50 basis points to 19% at the low end and 19.5% at the high end on a reported basis, including the dilutive impact of DroneDeploy, implying year-over-year margin expansion of 540 basis points versus 14.1% in FY 2025. Procore is maintaining FY 2026 free cash flow margin guidance of 19.5% excluding the onetime DroneDeploy closing cost, with approximately $23 million or 150 basis points of such costs for the year, and expects free cash flow margin of 18% on a reported basis; FY 27 guidance for non GAAP operating margin is reiterated at 25%.