Procore Technologies (PCOR) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 16% year-over-year to $375–$375.2 million, with strong international and U.S. contributions and expansion of subscriptions.

• Achieved first quarter of GAAP operating profitability, with net income of $16.9 million versus a prior-year loss, and significant non-GAAP margin expansion.

• Announced $845 million acquisition of DroneDeploy, expected to accelerate AI strategy, expand product capabilities, and be accretive to organic revenue growth, funded by committed bridge financing.

• Raised annual revenue and margin guidance, reflecting robust demand, market momentum, and execution discipline.

• Completed Datagrid acquisition for $168 million and launched new AI-driven platform enhancements and digital coworkers.

Financial highlights

• Q2 2026 revenue: $375–$375.2 million (up 16% YoY); net income: $16.9 million; gross margin: 80% GAAP, 84% non-GAAP.

• Free cash flow was $65 million, up 507% year-over-year; operating cash flow reached $88 million, up 185–186% YoY.

• Non-GAAP operating margin was 21–21.5% in Q2, up 800 bps YoY; GAAP operating margin improved to 1%.

• Gross revenue retention rate was 95%; $100K+ ARR customers grew 14% YoY to 2,871.

• Remaining performance obligations grew 24% YoY to $1.67 billion; CRPO grew 22% YoY.

Outlook and guidance

• Q3 2026 revenue expected between $382–$384 million (up 13.3% YoY); non-GAAP operating margin expected at 19–19.5%.

• FY26 revenue guidance raised to $1.51–$1.514 billion (up 14.5% YoY); non-GAAP operating margin expected at 18.5–19%; free cash flow margin at 19.5%.

• FY27 non-GAAP operating margin targeted at 25%.

• Management expects continued investment in technology innovation, international expansion, and integration of recent acquisitions.

• Liquidity is sufficient for at least the next 12 months, even with the planned DroneDeploy acquisition.