Abstract

Procore Technologies will report fiscal Q2 2026 results on July 29, 2026 Post-Mkt, with the market looking for revenue of 365.89 million US dollars and adjusted EPS of 0.42, while investors focus on sustaining mid-teens growth, disciplined expense pacing, and conversion of operating efficiency into margin expansion.

Market Forecast

Consensus for fiscal Q2 2026 points to revenue of 365.89 million US dollars, up 17.12% year over year, EBIT of 66.45 million US dollars, up 85.66% year over year, and adjusted EPS of 0.42, up 60.95% year over year; the company’s own revenue outlook from its prior update is 364.00–366.00 million US dollars, implying roughly 12%–13% year-over-year growth. There is no formal gross margin or net margin guidance disclosed for the quarter; commentary and estimates are centered on profitable growth, with EBIT and EPS leverage expected as operating efficiency improves.

The core platform continues to demonstrate resilient expansion in the mid-teens, with management emphasizing consistent execution and operational leverage into the June quarter. The most notable growth vector is the scaling cohort of larger customers, with organizations contributing more than 100,000 US dollars of annual recurring revenue rising 16% year over year in fiscal Q1 2026, underpinning the revenue trajectory into fiscal Q2 2026.

Last Quarter Review

In fiscal Q1 2026, Procore Technologies delivered revenue of 359.28 million US dollars, up 15.66% year over year, with a gross profit margin of 80.44%, a GAAP net loss attributable to shareholders of 9.10 million US dollars (net profit margin of -2.53%), and adjusted EPS of 0.34, up 47.83% year over year.

A key operating highlight was a sustained non-GAAP operating margin near the high teens alongside continued free cash flow generation, reflecting improving sales efficiency and spend discipline. Main business momentum was supported by a 95% gross revenue retention rate and a 16% year-over-year increase in customers contributing more than 100,000 US dollars of annual recurring revenue, aligning with the 15.66% year-over-year revenue uplift to 359.28 million US dollars.

Current Quarter Outlook

Main business: Subscription expansion and operating leverage

The company’s revenue base is anchored by subscriptions attached to its unified construction management platform, and this model continues to scale through both new logo additions and seat expansion within existing accounts. Management’s revenue outlook of 364.00–366.00 million US dollars for fiscal Q2 2026 suggests mid-teens growth, while consensus looks modestly higher at 365.89 million US dollars with 17.12% year-over-year growth. The combination of a high-70s to low-80s gross margin profile and tighter expense pacing sets the stage for meaningful EBIT expansion; consensus implies EBIT of 66.45 million US dollars for the quarter, an 85.66% year-over-year increase. Given Q1’s 95% gross revenue retention and strengthening cohort economics at the upper end of the customer base, the principal swing factor for the main business this quarter will be net expansion within enterprise and upper mid-market accounts. Management has been emphasizing operating discipline, and the forecast step-up in EBIT and EPS suggests that the company is converting past go-to-market and product investments into improved unit economics. If sales cycles remain consistent and churn remains contained, the platform’s mid-teens topline growth could translate into outsized bottom-line progress in Q2, in line with current expectations.

Most promising growth vector: Large-account penetration and international rollout

The company’s most visible growth vector is the expansion among larger customers, evidenced by a 16% year-over-year increase in organizations contributing more than 100,000 US dollars of annual recurring revenue as of fiscal Q1 2026. This cohort’s growth typically carries attractive net expansion dynamics due to wider product adoption, module attach, and standardized workflows across projects. As this segment matures, its contribution to revenue growth becomes more durable, helping to stabilize overall performance through macro cycles. International momentum also matters. The recent launch of a connected data environment and related AI capabilities tailored for Europe, initially in the UK and Ireland, adds a product-led catalyst to the regional go-to-market motion. Execution in EMEA should be closely watched in fiscal Q2 2026, as early deployments and pipeline build can complement the domestic engine; while revenue attribution by geography has not been disclosed for the quarter, incremental demand signals from these launches can support sustained mid-teens growth into the back half of the year. From a quarterly perspective, the near-term financial impact of the international rollout is likely modest but directionally supportive. The commercial signal to monitor is whether the large-account cohort continues to grow at or near the mid-teens pace seen in Q1, because that dynamic is a leading indicator for sustained ARR growth and, ultimately, revenue consistency.

Key factors likely to drive the stock this quarter

Margin delivery relative to topline is likely to be the determinant of the share reaction on July 29, 2026. With consensus implying a 60.95% year-over-year increase in adjusted EPS to 0.42 and an 85.66% year-over-year rise in EBIT to 66.45 million US dollars, investors will look for confirmation that gross margins remain around recent levels while operating expenses scale more slowly than revenue. Any deviation—either from unexpected investments or slower expense leverage—could shift the narrative around the cadence of profitable growth. Net expansion within the enterprise and upper mid-market cohort will be another focal point for the quarter. This is a key mechanism for achieving consistent mid-teens revenue growth without outsized dependence on new logos, and the Q1 data showed a favorable setup. The market will parse commentary on seat additions, module attach rates, and any signals on sales cycles and deal size for confirmation that the large-customer growth vector remains intact. Cash generation and free cash flow conversion are additional swing factors. Last quarter’s free cash flow performance and operating cash inflow provided solid evidence of improving efficiency. For Q2, investors will be looking for continued cash discipline consistent with a maturing subscription model. Delivering on these elements—steady mid-teens revenue growth, high-70s/low-80s gross margins, operating leverage, and healthy cash conversion—would align with the consensus trajectory and help sustain constructive sentiment.

Analyst Opinions

Analyst sentiment is predominantly bullish in the period from January 1, 2026 through July 22, 2026, with a clear skew toward Buy ratings and higher conviction on profitable growth; across identified updates in this window, bullish views outnumber bearish by a ratio of 5:0. Several well-known firms reinforced this stance: Piper Sandler maintained a Buy rating with a 71.00 US dollars target, Stifel Nicolaus reiterated Buy with a 63.00 US dollars target, and TD Cowen reiterated Buy with an 85.00 US dollars target. Canaccord Genuity also maintained Buy at 71.00 US dollars, and UBS adjusted its target to 68.00 US dollars from 74.00 US dollars while retaining a Buy rating, signaling continued confidence in the company’s execution despite a modest recalibration of expected upside. The majority view highlights a consistent set of drivers for the upcoming print. Analysts see sustained mid-teens revenue growth as achievable given the Q1 run rate and management’s Q2 revenue outlook of 364.00–366.00 million US dollars, while they expect non-GAAP profitability to expand as the operating model scales. Positive commentary centers on the upsell potential within larger customers and a more efficient go-to-market engine, which together support the consensus for 66.45 million US dollars in Q2 EBIT and 0.42 in adjusted EPS. Institutions emphasize that execution—rather than macro surprises—is the near-term determinant for upside. The bullish camp expects the combination of strong gross margins and disciplined operating expense growth to translate into faster-than-revenue EPS growth, which is reflected in the 60.95% year-over-year adjusted EPS increase embedded in Q2 forecasts. In their view, steady net expansion among large accounts and a healthy retention profile should provide enough cushion for mid-teens revenue growth, while Q2 commentary on regional initiatives and product updates can extend confidence into the back half of fiscal 2026. The constructive stance further notes that while headline revenue growth is moderating from earlier hypergrowth phases, the quality of growth has improved, as shown by better operating margins and cash conversion in the most recent quarter. This mix of efficiency and consistency is seen as the primary reason to maintain Buy ratings despite a choppy broader software tape over the six-month period under review. Analysts will scrutinize the Q2 report for continued progress on operating margins and free cash flow while tracking demand signals in larger accounts; delivering in line with consensus on these metrics would likely validate the current set of positive targets and ratings. In sum, the majority analyst view entering July 29, 2026 is that Procore Technologies remains on track for mid-teens revenue growth and accelerating profitability in fiscal Q2 2026, with the balance of evidence—customer cohort expansion, retention, and guidance—supporting the current consensus for 365.89 million US dollars of revenue, 66.45 million US dollars of EBIT, and 0.42 in adjusted EPS. The market’s reaction should hinge on the degree to which reported margins and cash metrics confirm this path of profitable growth.