PCOR

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at design software stocks, starting with Procore Technologies (NYSE:PCOR). The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies. The 6 design software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 2.9% above. Luckily, design software stocks have performed well with share prices up 17.9% on average since the latest earnings results. With a mission to build software for the people that build the world, Procore Technologies (NYSE:PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device. Procore Technologies reported revenues of $375.2 million, up 15.8% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ adjusted operating income estimates. “Our outstanding Q2 results demonstrate the continued value our platform provides to the construction industry,” said Ajei Gopal, President and CEO of Procore. Procore Technologies delivered the weakest guidance update of the whole group. Interestingly, the stock is up 23.4% since reporting and currently trades at $61.88. Is now the time to buy Procore Technologies? Access our full analysis of the earnings results here, it’s free. Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE:U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms. Unity reported revenues of $546.5 million, up 23.9% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with a solid beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations. Unity scored the biggest analyst estimate beat in the group. The market seems happy with the results as the stock is up 28.4% since reporting. It currently trades at $45.55. Is now the time to buy Unity? Access our full analysis of the earnings results here, it’s free. Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ:PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM. PTC reported revenues of $600 million, down 6.8% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted a significant miss of analysts’ billings estimates and a miss of analysts’ annual recurring revenue estimates. PTC delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Interestingly, the stock is up 15.9% since the results and currently trades at $153.50. Read our full analysis of PTC’s results here. Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ:ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms. Adobe reported revenues of $6.62 billion, up 12.7% year on year. This number surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it also produced a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. Adobe scored the highest full-year guidance raise among its peers. The stock is up 22.8% since reporting and currently trades at $268.66. Read our full, actionable report on Adobe here, it’s free. Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors. Cadence Design Systems reported revenues of $1.58 billion, up 24.2% year on year. This result beat analysts’ expectations by 0.5%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. Cadence Design Systems pulled off the fastest revenue growth in the group. The stock is down 3.7% since reporting and currently trades at $325.99. Read our full, actionable report on Cadence Design Systems here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in Procore Technologies, Inc.? Here are five stocks we like better. Procore delivered a strong second quarter: Revenue rose 15.8% year over year to $375 million, while non-GAAP operating margin expanded to 21.5% and free cash flow increased 507% to $65 million. The company also reported its first quarter of GAAP operating profitability. The company raised its outlook and set ambitious margin targets. Procore increased its 2026 revenue and profitability guidance, and introduced a fiscal 2027 non-GAAP operating-margin target of 25%. Procore is expanding its AI strategy through acquisitions and new products. Its planned $845 million cash acquisition of DroneDeploy would add drone, robotics and visual-data capabilities, while Procore is broadening sales of its 20 AI agents and targeting cross-selling opportunities across shared customers. Reversal in play for Procore Technologies Procore Technologies (NYSE:PCOR) reported second-quarter results that exceeded its guidance, driven by broad-based demand, large contract wins and growth in international markets, while the construction software company also outlined an expanded artificial intelligence strategy centered on its planned acquisition of DroneDeploy. Revenue for the second quarter totaled $375 million, up 15.8% from a year earlier, according to CFO Rachel Pyles. The company exceeded the high end of its revenue guidance by approximately 2.5%. International revenue rose 23% year over year, or 19% on a constant-currency basis. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Procore generated non-GAAP operating income of $81 million, producing a 21.5% non-GAAP operating margin, an improvement of 800 basis points from the prior-year period. Free cash flow reached $65 million, up 507% year over year. Pyles said the quarter also marked Procore’s first period of GAAP operating profitability. The company raised its full-year outlook for its organic business. Procore now expects 2026 revenue of $1.51 billion to $1.514 billion, representing 14.5% year-over-year growth at the high end of the range. It forecasts full-year non-GAAP operating margin of 18.5% to 19%, 50 basis points above its previous outlook, and free-cash-flow margin of 19.5%. → Microsoft Just Flipped the AI Spending Narrative Overnight For the third quarter, Procore forecast revenue of $382 million to $384 million, representing 13.3% year-over-year growth at the high end, and a non-GAAP operating margin of 19% to 19.5%. Pyles also introduced a fiscal 2027 non-GAAP operating-margin target of 25%, which she said would represent nearly 1,100 basis points of improvement from fiscal 2025. She emphasized that the target reflects confidence in the company’s cost structure rather than a revenue forecast, which Procore plans to provide in its normal planning cycle. → Carrier Earnings Could Send the Stock to a New All-Time High “This quarter’s performance is an initial step in a broader trajectory of profitable growth,” Pyles said. Procore announced an agreement to acquire DroneDeploy for $845 million in cash. DroneDeploy provides reality-capture and robotic-automation technology, including tools using drones, ground robots, mobile devices and cameras to collect and analyze visual data from job sites. DroneDeploy has generated approximately $78 million in trailing 12-month revenue, Pyles said. Procore expects the acquisition to be accretive to organic revenue growth and said it expects to absorb the near-term margin impact without changing its fiscal 2026 or fiscal 2027 margin outlook. The transaction is expected to close later in 2026. The company has arranged committed bridge financing for most of the purchase price while it evaluates its longer-term capital structure, Pyles said. Procore’s financial outlook does not include any expected contribution from DroneDeploy. President and CEO Ajei Gopal said the acquisition is intended to add “perception” capabilities to Procore’s AI strategy, allowing construction workflows to incorporate visual information captured by cameras, drones and robots. He described the company’s longer-term goal as developing digital coworkers that can collect information, reason over it and initiate actions within Procore’s collaborative platform. DroneDeploy has captured 20 trillion square feet of visual construction data, Gopal said, including user annotations, construction-progress labels and more than 100,000 labeled safety issues. The company operates on more than 3 million job sites in over 180 countries, according to Procore. Procore and DroneDeploy already share nearly 600 customers, including Skanska and Turner. Gopal said Procore sees a near-term cross-selling opportunity among its thousands of existing customers that do not currently use DroneDeploy. The DroneDeploy deal follows Procore’s January acquisition of Datagrid. After that acquisition, Procore integrated Datagrid’s technology and launched Procore AI through a limited specialist sales effort before expanding availability to the broader go-to-market organization. Procore said it now offers 20 pre-built AI agents designed for construction workflows. The company cited early adopters including Haskell, Level 10 Construction and Consigli. At Consigli, Procore said AI tools used for tasks such as reviewing submittals, drafting requests for information and searching drawings reduced certain workflows substantially during tests; the contractor is now deploying Procore AI across 50 projects. Gopal said Procore’s starter packages are intended to offer customers a lower-friction way to adopt AI tools in a limited number of projects and workflows before expanding use. “The product has just gone GA, now it’s available to the broader sales force to position with their customers,” Gopal said, referring to general availability. Procore said it continues to outperform an uneven construction market. Gopal noted weakness in some sectors, including manufacturing, while data-center construction has remained especially strong amid investment tied to artificial intelligence. The company said nine of the 10 largest North American data-center sites use Procore during construction. In the second quarter, Procore closed its largest contract in Europe, the Middle East and Africa: a nearly $7 million agreement with a European builder of hyperscale AI data centers operating across Europe, the United States and Asia-Pacific. Procore also signed a contract with the King Salman International Airport project in Saudi Arabia, which will use the platform for unified digital construction management with strategic delivery partner TASAMA. International business accounts for about 15% of Procore’s operations, while roughly 85% is domestic, Gopal said. The company is pursuing targeted expansion by pairing localized products, including its recently launched common data environment for Europe, with an expanded international go-to-market approach. Procore Technologies, Inc engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company's platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Procore Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Total Revenue: $375 million in Q2, up 15.8% year-over-year. International Revenue: Grew 23% year-over-year (19% on a constant currency basis). Non-GAAP Operating Income: $81 million, representing a 21.5% non-GAAP operating margin, an 800 basis point year-over-year expansion. GAAP Operating Profit: First quarter of GAAP operating profitability. Free Cash Flow: $65 million, up 507% year-over-year. cRPO Growth: Year-over-year growth rate accelerated by 100 basis points, driven by stronger underlying bookings and an increase in average contract duration. DroneDeploy Revenue (Trailing 12-Month): Approximately $78 million. Q3 2026 Revenue Guidance: Expected between $382 million and $384 million, representing 13.3% year-over-year growth at the high end. Q3 2026 Non-GAAP Operating Margin Guidance: Expected between 19% and 19.5%. Full Year 2026 Revenue Guidance (Raised): $1.51 billion to $1.514 billion, representing 14.5% year-over-year growth at the high end. Full Year 2026 Non-GAAP Operating Margin Guidance (Raised): 18.5% to 19%, implying 440 to 490 basis points of year-over-year expansion. Full Year 2026 Free Cash Flow Margin Guidance (Raised): 19.5%, implying approximately 310 basis points of year-over-year expansion. FY27 Non-GAAP Operating Margin Guidance (Initiated): 25%, representing nearly 1,100 basis points of improvement versus FY25. Warning! GuruFocus has detected 2 Warning Sign with PCOR. Is PCOR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Procore Technologies Inc (NYSE: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. Here are the key highlights from Procore Technologies Inc (NYSE:PCOR)'s Q2 2026 earnings call. Q: What convinced you that DroneDeploy was an asset Procore needed to own rather than continue to partner with? A: (Ajei Gopal, President and CEO) The acquisition is a key part of our strategy to build a next-generation AI-native construction application. The "perception" piece (the eyes and ears) of our digital co-worker strategy was something we needed to own. DroneDeploy has deep technology in AI, computer vision, and robotics, and we have a long-standing partnership with 600 mutual customers. This gives us confidence in the technology and a clear short-term cross-sell opportunity into our thousands of customers who don't use DroneDeploy yet. Q: Can you elaborate on the state of the international business and the opportunity going forward? A: (Ajei Gopal, President and CEO) International is about 15% of our business and a key growth area. We are seeing success by tailoring our approach. In Europe, we launched a Common Data Environment (CDE) to meet specific market requirements, which has received positive feedback. In other regions like the Middle East, our standard US product fits well, leading to wins like the King Salman International Airport (KSIA) deal. We are excited about the opportunity but it is still early days. Q: What gives you the confidence to provide a non-GAAP operating margin target of 25% for FY27, six quarters out? A: (Rachel Pyles, CFO) We have spent the last four months deeply analyzing our cost structure and have high conviction in our ability to improve margins. The 25% target, which represents ~1,100 basis points of expansion from FY25, is a notable milestone and the first of many on our path to best-in-class software margins. This is a comment on our cost structure, not a forward revenue guide. We are confident we can achieve this regardless of the revenue outcome. Q: How are new AI capabilities influencing customers' willingness to invest, especially given the uneven construction environment? A: (Ajei Gopal, President and CEO) Our customers are sophisticated and recognize AI's potential. They want to leverage AI safely and conveniently within the systems they already use, which is Procore. Our strategy is to integrate AI directly into the platform so customers don't need to become AI experts. The "starter packs" for our digital co-workers are designed as a low-friction, bite-sized way for customers to experience the ROI, helping them manage change and adopt the technology. Q: How does owning Datagrid make it easier to acquire DroneDeploy, and how does adding visual elements grow your TAM? A: (Ajei Gopal, President and CEO) There is clear technical synergy between Datagrid's indexing/retrieval capabilities and DroneDeploy's visual data, which is exciting. Regarding TAM, in the short term, there is a significant cross-sell opportunity to thousands of Procore customers not using DroneDeploy. In the long term, our digital co-worker strategy goes after a different pool of moneythe labor shortage. By automating tasks, we can access budgets our customers have for people they can't hire, expanding our addressable market beyond traditional construction management software. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CARPINTERIA, Calif., July 29, 2026--(BUSINESS WIRE)--Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced financial results for the second quarter ended June 30, 2026. "Our outstanding Q2 results demonstrate the continued value our platform provides to the construction industry," said Ajei Gopal, President and CEO of Procore. "Customers are embracing our solutions, giving us more confidence in our direction, our ability to execute, and our future success. Procore offers users a system of collaboration that creates a powerful network effect across the industry, helping our customers achieve their business needs." "We had strong Q2 performance, including achieving GAAP operating profitability," said Rachel Pyles, CFO of Procore. "This achievement, alongside our 16% revenue growth and free cash flow generation, underscores our commitment to driving durable, profitable growth in FY26 and the long term." Second Quarter 2026 Financial Highlights: Revenue was $375 million, an increase of 16% year-over-year. GAAP gross margin was 80% and non-GAAP gross margin was 84%. GAAP operating margin was 1% and non-GAAP operating margin was 21%. Operating cash inflow for the second quarter was $88 million, an increase of 185% year-over-year. Free cash inflow for the second quarter was $65 million, an increase of 507% year-over-year. Basic WASO used for earnings per share was 151,355,834, an increase of 1% year-over-year. Diluted WASO used for earnings per share was 152,793,490, a change of 0% year-over-year. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures." Recent Business Highlights: Achieved a gross revenue retention rate of 95% in the second quarter. Number of organic customers contributing more than $100,000 of annual recurring revenue totaled 2,871 as of June 30, 2026, an increase of 14% year-over-year. Announced new portfolio management and capital planning capabilities to transform the way owners manage capital projects. Launched a connected Common Data Environment to unify and verify project data. Introduced an expanded Procore AI experience, featuring a new suite of AI agents powered by embedded Datagrid intelligence and built directly into Procore. Third Quarter, Full Year, and FY’27 Outlook: Procore is providing the following guidance for the third quarter 2026, the full year 2026, and the full year 2027: Third Quarter 2026 Outlook: Full Year 2026 Outlook: Full Year 2027 Outlook: A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Procore’s future GAAP financial results. Quarterly Conference Call Procore Technologies, Inc. will hold a conference call to discuss its second quarter results at 7:30 a.m., Central Time, on Thursday, July 30, 2026. A live audio webcast will be accessible on Procore's investor relations website at http://investors.procore.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about Procore and its industry, including our outlook for the third quarter 2026 and the full fiscal year 2026, our expectations regarding the performance of our business and product offerings, and our ability to drive durable, profitable growth, that involve substantial risks and uncertainties. All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events, future financial or operating performance, or new, planned, or upgraded products, services, or features, and may be identified by the use of words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," or the negative of these words, or other similar terms or expressions that concern Procore’s expectations, strategy, plans, or intentions. Procore has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that Procore believes may affect its business, financial condition, and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors that could cause results to differ materially from Procore’s current expectations. Such factors include, but are not limited to, our expectations regarding our financial performance (including revenues, expenses, and margins, and our ability to achieve or maintain future profitability), our ability to obtain financing to support our capital requirements on satisfactory terms or at all, our ability to effectively manage our growth, and challenges in our business and in the markets in which we operate or anticipate entering into, economic and industry trends (in particular, the rate of adoption of construction management software and digitization of the construction industry, inflation, interest rates, tariffs, and challenging geopolitical or macroeconomic conditions), our ability to successfully identify and complete acquisitions, joint ventures, or investments (including our ability to successfully integrate and realize the expected benefits of the foregoing, as applicable), our ability to realize the expected benefits of our go-to-market model, our ability to attract new customers and retain and increase sales to existing customers, our ability to expand internationally, the effects of increased competition in our markets and our ability to compete effectively, our estimated total addressable market, our ability to execute, and realize benefits from, our stock repurchase program, our ability to develop and integrate new products, platform capabilities, services, and features in an efficient and timely manner and get our customers and prospective customers to adopt such new products, platform capabilities, services, and features, the impact of litigation or other disputes on our business, and other factors as set forth in Procore’s filings with the Securities and Exchange Commission, including in the section titled "Risk Factors" in Procore’s Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 24, 2026. You should not rely on Procore’s forward-looking statements. Procore assumes no obligation to update any forward-looking statements to reflect events or circumstances that exist or change after the date on which they were made, except as required by law. Non-GAAP Financial Measures In addition to Procore’s results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Procore believes certain non-GAAP measures, as described below, are useful in evaluating Procore’s operating performance. Procore uses this non-GAAP financial information, collectively, to evaluate its ongoing operations as well as for internal planning and forecasting purposes. Procore believes that non-GAAP financial information, when taken collectively, is helpful to investors because it provides consistency and comparability with past financial performance, and may assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. These non-GAAP financial measures are not prepared in accordance with GAAP, and are presented for supplemental purposes only. Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Income from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income, and Non-GAAP Net Income per Share: Procore defines these non-GAAP financial measures as the respective GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, employer payroll tax related to employee stock transactions, acquisition-related expenses, and impacts of income tax effects. Non-GAAP gross margin is the ratio calculated by dividing non-GAAP gross profit by total revenue. Non-GAAP operating margin is the ratio calculated by dividing non-GAAP income from operations by total revenue. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Non-GAAP diluted earnings per share is computed by giving effect to all potential weighted average dilutive common stock equivalents outstanding for the period, including options to purchase common stock, restricted stock units, and shares to be issued pursuant to the employee stock purchase plan. The dilutive effect of outstanding awards is reflected in non-GAAP diluted earnings per share by application of the treasury stock method. Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software and cloud-computing arrangement implementation costs. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between its operating results from period to period. The expense related to amortization of acquired intangible assets is a non-cash expense and is dependent upon estimates and assumptions, which can vary significantly and are unique to each asset acquired; therefore, Procore believes non-GAAP measures that adjust for the amortization of acquired intangible assets provide investors a consistent basis for comparison across accounting periods. The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Procore’s control and that do not correlate to the operation of the business. When evaluating the performance of its business and making operating plans, Procore does not consider these items (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). Since the amount of employer payroll tax-related items on employee stock transactions is highly variable due to factors outside our control, and unrelated to Procore’s core operations, operating results, revenue-generating activities, business strategy, industry, or regulatory environment, management does not consider employer payroll tax on employee stock transactions in the evaluation of the business or in making operating plans. Accordingly, Procore believes this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of its core business in a manner that is consistent with management’s view of the business. Acquisition-related expenses include external and incremental transaction costs, such as legal and due diligence costs and retention or other compensation payments. These expenses are unpredictable and generally would not have otherwise been incurred in the periods presented as part of our continuing operations. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related expenses, may not be indicative of such future costs. Procore believes that excluding acquisition-related expenses facilitates the comparison of its financial results to its historical operating results and to other companies in its industry. In the first quarter of FY26, Procore began utilizing a non-GAAP annual effective tax rate for our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting the non-GAAP tax rate, we utilize a financial projection that excludes the impact of other non-GAAP adjustments, including the current tax structure, our existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re-evaluate the non-GAAP effective tax rate, as necessary, for significant events based on relevant tax law changes and material changes in our geographic profile. When evaluating the transition to using a non-GAAP annual effective tax rate, Procore considered financial projections paired with the three-year history of positive non-GAAP net income results. Procore believes that it is useful to utilize a non-GAAP annual effective rate prospectively in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Procore's own operating results over different periods of time. Non-GAAP financial measures may not provide information that is directly comparable to information provided by other companies in Procore's industry, as other companies in the industry may calculate non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and exclude expenses that may have a material impact on Procore's reported financial results. Unlike stock-based compensation expense, employer payroll tax related to employee stock transactions is a cash expense that we will continue to incur in the future. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Investors should review the reconciliation of non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate Procore's business. Free Cash Flow: Procore defines free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized software development costs. Procore believes free cash flow is an important liquidity measure of the cash (if any) that is available, after our operating activities and capital expenditures. Procore uses free cash flow in conjunction with traditional GAAP measures to assess its liquidity and evaluate the effectiveness of its business strategies. Once Procore’s business needs and obligations are met, cash can be used to maintain a strong balance sheet, invest in future growth, and execute our stock repurchase program. Other Metrics Customer Count: The aforementioned customer count excludes customers acquired from business combinations that do not have standard Procore annual contracts. Gross Revenue Retention Rate and Annual Recurring Revenue: For information on how we calculate gross revenue retention rate and annual recurring revenue, refer to our most recent Quarterly Report on Form 10-Q. About Procore Procore Technologies, Inc. (NYSE: PCOR) is a leading technology partner for every stage of construction. Built for the industry, Procore’s unified technology platform drives efficiency and mitigates risk through AI & data-driven insights and decision making. Over three million projects have run on Procore across 150+ countries. For more information, visit www.procore.com. PROCORE-IR Category: Earnings Remaining performance obligation: The following table presents our current and non-current RPO at the end of each period: View source version on businesswire.com: https://www.businesswire.com/news/home/20260729106137/en/ Contacts Media Contact [email protected] Investor Contact [email protected]

Procore Technologies (PCOR) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.63%. A quarter ago, it was expected that this construction management software would post earnings of $0.36 per share when it actually produced earnings of $0.34, delivering a surprise of -5.56%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Procore Technologies, which belongs to the Zacks Internet - Software industry, posted revenues of $375.21 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $323.92 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Procore Technologies shares have lost about 32.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While Procore Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Procore Technologies was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.43 on $382.85 million in revenues for the coming quarter and $1.64 on $1.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Twilio (TWLO), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This company is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Twilio's revenues are expected to be $1.42 billion, up 15.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procore Technologies, Inc. (PCOR) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the design software industry, including Procore Technologies (NYSE:PCOR) and its peers. The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies. The 7 design software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 1% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.4% since the latest earnings results. With a mission to build software for the people that build the world, Procore Technologies (NYSE:PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device. Procore Technologies reported revenues of $359.3 million, up 15.7% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ annual recurring revenue estimates but billings in line with analysts’ estimates. The market seems disappointed with the results as the stock is down 34.1% since reporting and currently trades at $40.91. Is now the time to buy Procore Technologies? Access our full analysis of the earnings results here, it’s free. Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ:ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms. Adobe reported revenues of $6.62 billion, up 12.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations. Adobe delivered the highest guidance raise and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.7% since reporting. It currently trades at $212.80. Is now the time to buy Adobe? Access our full analysis of the earnings results here, it’s free. Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE:DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media. Dolby Laboratories reported revenues of $395.6 million, up 7.1% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly. Dolby Laboratories delivered the weakest guidance update and slowest revenue growth of the whole group. As expected, the stock is down 23.4% since the results and currently trades at $49.15. Read our full analysis of Dolby Laboratories’s results here. Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE:U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms. Unity reported revenues of $508.2 million, up 16.8% year on year. This number surpassed analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates. Unity had the weakest performance against analyst estimates in the group. The stock is up 6.2% since reporting and currently trades at $28.98. Read our full, actionable report on Unity here, it’s free. Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ:PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM. PTC reported revenues of $774.3 million, up 21.7% year on year. This result topped analysts’ expectations by 8.6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly. PTC delivered the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is down 17.3% since reporting and currently trades at $113.11. Read our full, actionable report on PTC here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Procore Technologies’ first quarter saw revenue growth that outpaced Wall Street’s expectations, yet the market responded negatively, reflecting concerns about profitability and execution. Management attributed the topline momentum to continued demand for its construction management platform and successful customer expansion, particularly in the U.S. general contractor segment. CEO Ajei Gopal emphasized the rapid adoption of new AI-driven features and highlighted Procore’s ability to attract large-scale enterprise clients with expanded commitments. Despite these product and customer wins, the company’s adjusted profit missed analyst estimates, and management acknowledged ongoing margin pressures as they invested in growth and platform enhancements. Is now the time to buy PCOR? Find out in our full research report (it’s free). Revenue: $359.3 million vs analyst estimates of $352.6 million (15.7% year-on-year growth, 1.9% beat) Adjusted EPS: $0.34 vs analyst expectations of $0.36 (6.1% miss) Adjusted Operating Income: $60.77 million vs analyst estimates of $51.7 million (16.9% margin, 17.6% beat) The company slightly lifted its revenue guidance for the full year to $1.50 billion at the midpoint from $1.49 billion Operating Margin: -4.4%, up from -11.7% in the same quarter last year Annual Recurring Revenue: $1.44 billion (15.7% year-on-year growth, beat) Billings: $327.2 million at quarter end, up 14.6% year on year Market Capitalization: $7.56 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joseph Vruwink (Baird): Asked about the smaller revenue beat versus previous quarters and the rationale for back-half loaded annual guidance. CFO Rachel Pyles explained the consistency with past guidance methodology and denied any hidden caution. Saket Kalia (Barclays): Inquired about the construction cycle’s stability and customer sentiment. CEO Ajei Gopal described the market as stable, with heightened activity in data centers and infrastructure. Dylan Becker (William Baird): Pressed on the role of AI in customer adoption and how learnings from early deployments would inform broader sales. Gopal emphasized customer trust in Procore as a technology partner and described rapid custom agent adoption by major clients. Adam Borg (Stifel): Asked about progress in the government vertical post-FedRAMP authorization and uptake of new bundled packages. Gopal said government contract impact is longer-term due to procurement cycles, while packaging has streamlined sales and improved customer clarity. Matthew Martino (Goldman Sachs): Sought clarity on international strategy with the new CRO and capital allocation priorities. Gopal noted momentum in the UK/Ireland and plans for EMEA expansion, while Pyles reaffirmed organic growth investment as the top priority, followed by targeted M&A and share buybacks. In the coming quarters, our analysts will be watching (1) the pace and breadth of AI agent adoption across Procore’s customer base, (2) the rollout and monetization of bundled product tiers and their impact on contract values, and (3) early signs of efficiency gains from internal AI deployment. Progress in international markets and execution on large enterprise deals will also be important indicators of sustained growth. Procore Technologies currently trades at $50.00, down from $62.10 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.