Procore Raises 2026 Outlook as Q3 Revenue Rises 18.7% to $402.3 Million; Approves New $300 Million Buyback

Procore Technologies raised its full-year revenue and margin outlook after third-quarter revenue rose 18.7% to $402.3 million, and the construction software maker authorized a new $300 million stock buyback.

Non-GAAP earnings climbed to $0.51 per diluted share from $0.42 a year earlier, according to the results Procore furnished with an 8-K on Tuesday. On a GAAP basis, the Carpinteria, California-based company narrowed its net loss to $4.6 million, or $0.03 per share, from $0.06 per share.

"Q3 was another outstanding quarter, with revenue and margins above the high end of our guidance," President and CEO Ajei Gopal said in the release. He added that Procore made its AI "digital coworkers" generally available during the quarter.

DroneDeploy adds to growth

Chief Financial Officer Rachel Pyles said revenue grew 19%, including 2 percentage points from DroneDeploy, the 3D reality-capture company Procore acquired to expand its visual intelligence and AI capabilities. "Driven by that underlying momentum, we are raising our full-year revenue and margin outlook," she said.

Profitability improved sharply. Non-GAAP operating income rose 61.0% to $94.4 million, lifting the non-GAAP operating margin to 23% of revenue. GAAP operating margin was negative 2%. Operating cash flow grew 8% to $96 million, and free cash flow rose 8% to $73 million.

Customer metrics

Procore said its gross revenue retention rate was 95% in the quarter. The number of organic customers contributing more than $100,000 of annual recurring revenue rose 14% to 2,968. Total remaining performance obligations, a measure of contracted future revenue, increased 28.4% to $1.81 billion.

Raised outlook

Procore's new guidance calls for:

• Fourth-quarter revenue of $420 million to $422 million, including $19 million from DroneDeploy, for year-over-year growth of 20.3% to 20.9%
• Fourth-quarter non-GAAP operating margin of 15.5% to 16.0%
• Full-year 2026 revenue of $1.557 billion to $1.559 billion, including $24 million from DroneDeploy, for growth of 17.7% to 17.9%
• Full-year 2026 non-GAAP operating margin of 19.0% to 19.5%
• A 2026 free cash flow margin of 18.0%, or 19.5% excluding an estimated $23 million in one-time DroneDeploy-related payments, the company said
• A 2027 non-GAAP operating margin of 25%

The release did not restate the prior ranges.

New buyback

Procore's board approved the new $300 million repurchase program on Oct. 30, 2026. It replaces a $300 million program that expired on Nov. 3, 2026. The company said it intends to buy back shares opportunistically based on market conditions.

Procore will discuss the results on a conference call at 8:30 a.m. ET on Wednesday.

By the numbers

• Revenue: $402.3 million, up 18.7%
• Non-GAAP EPS: $0.51, versus $0.42
• GAAP net loss per share: $0.03, versus $0.06
• Non-GAAP operating income: $94.4 million, up 61.0%
• Free cash flow: $73 million, up 8%
• Remaining performance obligations: $1.81 billion, up 28.4%

Sources

1. Procore Technologies Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001611052-26-000002)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.