Procore Technologies Q3 2026: Margins Expand, Outlook Raised

Procore Technologies reported Q3 2026 revenue of $402.3 million, topping expectations and marking 18.7% growth year over year. Adjusted non-GAAP earnings per share came in at $0.51, also above expectations. The DroneDeploy acquisition, integrated during the period, contributed roughly 2 percentage points of that revenue growth on its own.

Non-GAAP operating margin expanded to 23% from 17% a year ago, with sales and marketing leverage doing much of the work as that line fell to 31% of revenue from 36%. Management has now set an initial non-GAAP operating margin target of 25% for all of fiscal 2027, a signal that the efficiency gains are expected to compound rather than stall.

Remaining performance obligations grew 28% to $1.81 billion, with the current portion up 29%. That figure represents contracted future revenue not yet recognized, so its acceleration suggests the demand behind the raised full-year outlook is already locked in. For fiscal 2026, Procore lifted its revenue guidance to $1,557.0 million to $1,559.0 million, representing 17.7% to 17.9% growth for the full year.

On the product side, Procore made its AI digital coworkers generally available during the quarter and announced a voice-first mobile experience called Procore AI Go at its Groundbreak 2026 event. The company also introduced Asset Register to streamline contractor-to-owner project handovers, and launched Ground Pro through DroneDeploy to convert mobile site captures into 3D records. Management described the ambition as becoming a next-generation, AI-native construction management platform and a true system of intelligence for construction.

Investors should note that the strong non-GAAP results sit alongside a GAAP diluted loss of $0.03 per share. Acquisition-related expenses tied to DroneDeploy totaled $26.6 million in the quarter, and Procore issued $950 million in convertible notes, pushing interest expense to $5.0 million from $0.3 million a year ago. The board authorized a new $300 million stock repurchase program on October 30, 2026, replacing a prior program of the same size, with $275.0 million already repurchased year to date.