Q2 2026 Procore Technologies Inc Earnings Call Transcript
Key Points
- Procore Technologies Inc (PCOR) delivered outstanding Q2 results with 15.8% year-over-year revenue growth and a 21.5% non-GAAP operating margin, marking 800 basis points of margin expansion.
- The company signed a major contract for the King Salman International Airport in Saudi Arabia, one of the world's largest airports, and its largest EMEA deal ever, a nearly $7 million agreement with a hyperscale AI data center builder.
- Procore is gaining strong traction in the AI space with its Procore AI platform, including 20 prebuilt digital co-workers and early customer success, such as Consigli deploying AI across 50 projects.
- The acquisition of DroneDeploy for $845 million is expected to accelerate Procore's AI strategy by adding visual intelligence capabilities, with over 600 mutual customers and significant cross-sell opportunities.
- Management raised full-year 2026 revenue guidance and initiated a FY27 non-GAAP operating margin target of 25%, reflecting confidence in sustained profitable growth and operational leverage.
- The US residential and multifamily construction market experienced significant growth deceleration over the past 2.5 years, leading to negative growth in late 2025, creating an uneven end market.
- Procore's international business remains a small portion of total revenue (approximately 15%), and expansion faces challenges such as product differences (e.g., CDE requirements in Europe) and go-to-market adjustments.
- The company's Q3 2026 revenue guidance implies a deceleration to 13.3% year-over-year growth at the high end, down from 15.8% in Q2.
- The DroneDeploy acquisition, while strategically important, introduces integration risks and near-term margin headwinds, though management expects to absorb these without changing margin guidance.
- Procore's gross margins remain in the mid-80s, and scaling AI digital co-workers could pressure margins if compute costs are not optimized effectively.
Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Procore Technologies, Inc. FY26 Q2 earnings call. (Operator Instructions)
I would now like to turn the call over to Matthew Puljiz, SVP of Finance. Please go ahead.
Good morning, and welcome to Procore's 2026 second-quarter earnings call. I'm Matthew Puljiz, SVP of Finance. With me today are Ajei Gopal, President and CEO; and Rachel Pyles, CFO. Further disclosure of our results can be found in our press release issued today, which is available on the Investor Relations section of our website and our periodic reports filed with the SEC.
Today's call is being recorded, and a replay will be available following the conclusion of the call. Comments made on this call include forward-looking statements regarding, among other things, our financial performance, platform and products, customer demand, business strategies, transactions and
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