Procore Technologies, Inc. (PCOR) · Nov 3, 2026 · Earnings
Beat — Non-GAAP EPS $0.51 vs ~$0.46 consensus; revenue $402.3M vs ~$384.5M
Procore earnings beat Q3 expectations, with 19% revenue growth, stronger margins and a raised full-year outlook despite acquisition costs.
Procore is moving from construction-management software toward an AI-native platform, using its newly completed DroneDeploy acquisition to add visual jobsite intelligence and “digital coworkers” to its core system. DroneDeploy closed on September 9, 2026, after being announced as an approximately $845 million cash acquisition, making integration and monetization the key new execution test.
The quarter cleared both the company’s bar and the market’s bar. Revenue reached $402.3 million, up 19% year over year, versus prior quarterly guidance of $382 million–$384 million and published consensus of roughly $384.5 million. Non-GAAP diluted EPS was $0.51 versus consensus near $0.46.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Financial Statements) | $402.3M (+18.7%) | $338.9M | $384.5M |
| Non-GAAP diluted EPS (Non-GAAP Net Income) | $0.51 (+21.4%) | $0.42 | $0.46 |
| Non-GAAP operating margin (Non-GAAP Income from Operations) | 23% (+600 bps) | 17% | 19%–19.5% guide |
| Free cash flow (Free Cash Flow) | $73.0M (+7.8%) | $67.7M |
The beat was operational, not just accounting-driven. Non-GAAP operating margin expanded to 23% from 17%, well above the prior 19%–19.5% target, while free cash flow rose to $73.0 million. That combination says Procore is scaling more efficiently even as it spends on AI and absorbs DroneDeploy-related integration costs.
The strategic transition is beginning to show up in the numbers. DroneDeploy contributed two percentage points of reported growth in its first quarter inside Procore, while Procore AI’s digital coworkers became generally available. The acquisition was already known, so the surprise is not the strategy itself; it is that the acquired business is contributing immediately without preventing a margin outperformance. 〔0〕
Management raised the full-year revenue and margin outlook, reinforcing the beat. The supplied filing text does not include the new full-year revenue and operating-margin ranges, so the size of that increase cannot be quantified here. Free-cash-flow margin is expected at 18.0% including approximately $23 million of one-time DroneDeploy cash payments, or 19.5% excluding those payments; that is effectively a maintained underlying cash-generation target rather than a clean raise. 〔1〕
The main offset is the heavier balance-sheet and acquisition burden. Procore ended the quarter with $927.9 million of convertible notes and recorded $26.6 million of acquisition-related expenses, helping keep GAAP operating income negative despite strong adjusted profitability. Those costs are material, but they do not outweigh the size of the operating beat in this filing.
Bottom line: Procore is executing ahead of expectations while its AI and DroneDeploy strategy starts contributing to growth. This is more than a routine beat because the company also raised its outlook and delivered a meaningful margin surprise, though the balance sheet now carries substantial acquisition-related financing.
Q3 earnings call, November 4, 2026
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