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 operations. Procore has built one of the most essential vertical software platforms in the industry, a system of collaboration that creates a powerful network effect across the industry's stakeholders. We have taken concrete steps towards that vision through both organic development and two targeted acquisitions, including our agreement to acquire DroneDeploy, which we announced yesterday. This quarter's outstanding results and our raised expectations for the year reflect that discipline.
Q2 was an outstanding quarter for Procore, where we delivered 15.8% year-over-year revenue growth and 21.5% non-GAAP operating margin, which represents 800 basis points of year-over-year margin expansion. To reflect our momentum in the market, I'm pleased that we have raised our annual guidance, just as we did last quarter. I'm also excited about the margin expansion we have delivered over the past few years, the operating leverage we are building, and our commitment to sustained profitability. residential and multifamily construction market has experienced significant growth deceleration over the past two and a half years, leading to negative growth in late 2025.
Despite this, Procore has sustained mid-teens top-line growth, significantly outperforming the end market and reflecting the critical nature of our products and our ongoing success across stakeholders. This company will use Procore as its system of record for the entire global construction program, including project execution, document control, and cost management. Since then, we have expanded our market leadership, evolving from a system of record to a global system of collaboration. To accelerate our ambitious roadmap, we are driving organic innovation alongside strategic acquisitions.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q3 2026 | $382M-$384M (13.3% YoY growth at the high end) |
| Non-GAAP operating margin | Q3 2026 | 19%-19.5% |
| Revenue | FY2026 | $1.510B-$1.514B (raised; 14.5% YoY at the high end) |
| Non-GAAP operating margin | FY2026 | 18.5%-19% (raised 50 bps; 440-490 bps YoY expansion) |
| Free cash flow margin | FY2026 | 19.5% (raised 50 bps; ~310 bps YoY expansion) |
| Non-GAAP operating margin | FY2027 | 25% initiated (~1,100 bps improvement vs FY2025); a cost-based, not revenue-based, commitment |
| DroneDeploy acquisition | close later in 2026 | $845M cash (~$78M TTM revenue); accretive to organic revenue growth, no change to FY2026/FY2027 margin outlook |
| Metric | YoY | Note |
|---|---|---|
| Revenue | +15.8% to $375M | Broad-based strength across geographies, stakeholders and customer sizes, led by large-deal execution and data-center wins. |
| GAAP diluted EPS | $0.11 | First quarter of GAAP operating profit (1.2% GAAP operating margin); profitability early in a longer trajectory. |
| Non-GAAP operating margin | 21.5% (+800 bps) | Strong execution and growing inherent operating leverage in the business model. |
| Free cash flow | $65M (+507%) | Revenue growth plus margin expansion and disciplined cost structure. |
| International revenue | +23% (+19% constant currency) | Beachhead expansion (Europe CDE launch, Middle East investment) and large deals like KSIA in Saudi Arabia. |
| CRPO growth | +100 bps acceleration | Primarily stronger underlying bookings, with a smaller benefit from longer average contract duration on large deals. |
| Gross margin | mid-80s% | Expected to stay consistent as Procore optimizes model selection so not every task needs the most expensive AI model. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI-native construction platform | System of record to system of collaboration | Procore is embedding AI into the platform core to build 'digital coworkers' addressing a ~350,000-worker U.S. labor shortage; the strategy centers on perception (eyes and ears), reasoning and action, anchored by ~3 million active users, secure infrastructure, network effects and a focus on moving work forward. | — |
| DroneDeploy acquisition | Longtime partner | The $845M deal adds 'visual intelligence' (drones, ground robots, fixed/mobile/wearable cameras) used on 3M+ job sites across 180+ countries, complementary with no overlap, ~600 joint customers (a large cross-sell opportunity), plus three early AI agents and robotics management exposure — the 'perception' layer for digital coworkers. | — |
| Data-center construction tailwind | Emerging strength | Procore is the data-center market leader (nine of the 10 largest North American sites), with U.S. data-center construction spending tripling over three years and ~100 GW to be added 2026-2030; new connected-commissioning/asset workflows and NVIDIA Omniverse 3D digital twins deepen the offering. | — |
| Margin expansion / profitability | Focus on growth | First GAAP operating profit, 800 bps of non-GAAP margin expansion, raised FY2026 guidance and a new 25% FY2027 non-GAAP operating-margin target (~1,100 bps vs FY2025) — framed as a cost-structure commitment with AI efficiency tailwinds and multiple paths to get there. | — |
| International expansion | ~15% of business | Growing via product localization (a Europe-specific common data environment launched this year, well received) and go-to-market build-out under new CRO Walt, with U.S.-consistent product working in the Middle East (KSIA) and CDE-led markets like the U.K./Ireland requiring tailored product. | — |
| Stakeholder and product breadth | GC-centric origins | Owners and specialty contractors now ~40% of business (from a standing start), with stakeholder-specific products (European CDE, owner portfolio/capital-planning) and direct-plus-channel go-to-market countering the perception that Procore is tied only to ENR-400 general contractors. | — |
| Deliberate AI go-to-market | Datagrid integration | A staged limited-availability-to-GA rollout with a small specialist overlay team surfaced a packaging need, answered with low-friction 'starter packs' (ready-to-use submittal/RFI/daily-log agents on a few projects) that ease change management before broadening to the full sales force. | — |