Procore Technologies (PCOR) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue grew to $359.3 million, up 16% year-over-year, surpassing guidance, driven by existing customer expansion and new acquisitions.

• Non-GAAP operating margin improved to 17%, with GAAP operating margin at (4%).

• AI investments, including the $168 million Datagrid acquisition, are driving product innovation and future growth.

• Gross retention rate remained strong at 95%, and customers with over $100,000 in ARR increased 16% year-over-year.

• Leadership changes included new CFO, CRO, and Board appointments to accelerate execution and value creation.

Financial highlights

• Revenue reached $359.3 million, up 16% year-over-year.

• Non-GAAP operating income was $60.8 million, with a 17% margin, up from $32.4 million in Q1 2025.

• Free cash flow was $56 million, up 20% year-over-year.

• Net loss for Q1 was $9.1 million, a significant improvement from $33.0 million loss in Q1 2025.

• Gross margin improved to 80% (GAAP), with non-GAAP gross margin at 84%.

Outlook and guidance

• Q2 2026 revenue expected between $364 million and $366 million, up 13% year-over-year at the high end.

• FY2026 revenue guidance raised to $1.499B–$1.503B, up 13.6% year-over-year at the high end.

• FY2026 non-GAAP operating margin guidance raised to 18%–18.5%, up 390–440 basis points year-over-year.

• Free cash flow margin guidance maintained at 19%.

• Management expects continued investment in technology innovation, international expansion, and product development, including AI.