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Procore Technologies
(NYSE:PCOR)
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Rating:74Outperform
Price Target:
$62.00
▲(44.76% Upside)
Action:Reiterated
Date:08/07/26
PCOR scores well primarily on improving financial quality (strong free cash flow, high gross margins, low leverage) and a constructive earnings outlook with raised guidance and meaningful non-GAAP margin expansion. The score is held back by weak traditional valuation signals (negative P/E) and technical overbought readings that raise near-term pullback risk, with corporate actions adding strategic upside alongside integration and financing complexity.
Positive Factors
Strong cash generation
Sustained, sizable operating and free cash flow provides durable funding for R&D, product rollout, M&A and opportunistic buybacks without relying on equity raises. This cash profile materially reduces financing risk and supports multi‑year execution despite GAAP losses.
Negative Factors
GAAP profitability lag
Accounting profitability remains elusive at the operating line, meaning reported earnings may lag cash profitability. Persistent GAAP losses limit return metrics, may constrain certain institutional demand, and create execution risk if higher investments fail to convert to sustained GAAP profit.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained, sizable operating and free cash flow provides durable funding for R&D, product rollout, M&A and opportunistic buybacks without relying on equity raises. This cash profile materially reduces financing risk and supports multi‑year execution despite GAAP losses.
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
$8.67B
Dividend YieldN/A
Average Volume (3M)3.12M
Price to Earnings (P/E)―
Beta (1Y)1.47
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. Volume2,777,201
30 Day Avg. Volume3,124,622
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$69.33Price Target Upside61.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
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 software platform under a subscription-based model (software-as-a-service). Customers pay recurring fees to use Procore’s modules and capabilities, typically under contracts that renew over ti...
Procore Technologies Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a strong quarter with clear execution: double-digit revenue growth (15.7%), substantial margin expansion (+650 bps to 17%), improved free cash flow (+20%) and raised full-year guidance. Momentum across backlog metrics, large deal wins, rapid product adoption (Procore Scheduling, 2,000+ companies), strategic partnerships (NVIDIA) and early but fast-moving AI integration (Datagrid, agents, voice pilot) underpin an optimistic outlook. Key risks are modest near-term gross margin headwinds from AI compute costs, the early-stage nature of AI monetization and go-to-market scaling (broader sales motion expected in Q3), and some perceived short-term deceleration in guide pacing. Overall, positives substantially outweigh the near-term headwinds, with anticipated efficiency gains and monetization opportunities materializing over the medium term (notably into 2027).Positive Updates
Strong Q1 Revenue and Profitability
Total revenue of $359 million in Q1, up 15.7% year-over-year; non-GAAP operating income of $61 million representing a 17% non-GAAP operating margin (up 650 basis points year-over-year); free cash flow of $56 million, up 20% year-over-year.
Negative Updates
AI-Related Cost Headwinds and Timing of Efficiencies
Management expects modest gross margin headwinds from increased compute expenses to support AI workloads; material operating efficiencies from internal AI adoption are expected but will be realized more meaningfully in 2027 and beyond, implying near-term margin pressure from AI compute costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Revenue and Profitability
Total revenue of $359 million in Q1, up 15.7% year-over-year; non-GAAP operating income of $61 million representing a 17% non-GAAP operating margin (up 650 basis points year-over-year); free cash flow of $56 million, up 20% year-over-year.
Read all positive updates
Company Guidance
Procore raised its FY‑26 outlook after a strong Q1 beat (Q1 revenue $359M, +15.7% Y/Y; non‑GAAP operating income $61M, margin 17%, +650 bps Y/Y; free cash flow $56M, +20% Y/Y; current RPO +21% Y/Y; current deferred revenue +17% Y/Y), guiding Q2 revenue of $364M–$366M (≈13% Y/Y at the high end) with Q2 non‑GAAP operating margin of 17.5%–18.5%, and raising full‑year revenue to $1.499B–$1.53B (≈13.6% Y/Y at the high end) while increasing FY non‑GAAP operating margin by 50 bps to 18%–18.5% (implying ~390–440 bps Y/Y expansion) and maintaining free cash flow margin guidance at 19% (≈280 bps Y/Y expansion).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
42.83
Price Trends
45.94
Positive
49.74
Positive
58.39
Negative
Market Momentum
3.31
Negative
75.22
Negative
90.76
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 42.83 is below the 20-day moving average (MA) of 48.58, below the 50-day MA of 45.94, and below the 200-day MA of 58.39, indicating a neutral trend. The MACD of 3.31 indicates Negative momentum. The RSI at 75.22 is Negative, neither overbought nor oversold. The STOCH value of 90.76 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.04B | 45.07 | 30.92% | ― | 20.66% | -21.24% | |
74 Outperform | $8.67B | -218.96 | -3.13% | ― | 15.41% | 73.03% | |
72 Outperform | $3.94B | 39.79 | 10.69% | ― | 25.42% | 125.90% | |
66 Neutral | $4.78B | -14,542.42 | <0.01% | ― | 12.47% | -98.50% | |
63 Neutral | $8.19B | -58.79 | -8.97% | ― | 24.09% | 59.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PCOR
Procore Technologies
57.06
-4.56
-7.40%
APPF
AppFolio
199.54
-81.34
-28.96%
BILL
Bill.com Holdings
47.99
8.87
22.67%
MNDY
Monday.com
93.13
-81.00
-46.52%
TTAN
ServiceTitan, Inc. Class A
85.83
-12.69
-12.88%
Procore Technologies Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Procore Technologies Announces Board Resignation and Size Reduction
Neutral
Jul 2, 2026
On June 26, 2026, Procore Technologies director Erin Chapple informed the company she would voluntarily resign from its Board of Directors, with her departure effective June 30, 2026. The company stated that her resignation did not stem from any d...
Executive/Board ChangesShareholder Meetings
Procore Shareholders Reelect Directors and Back Governance Measures
Positive
Jun 5, 2026
At its annual meeting of stockholders held on June 4, 2026, Procore Technologies, Inc. reported final voting results for several key governance items. Shareholders elected three Class II directors—Craig F. Courtemanche, Jr., Kathryn A. Bueke...
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.