Procore Lifts 2026 Outlook After DroneDeploy Boost

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue reached $402 million, up 19% year over year, and the company raised full-year 2026 revenue to $1,557.0 million to $1,559.0 million.

Procore Technologies (PCOR), the construction management software company, reported third-quarter revenue of $402 million, up 19% from a year earlier, including 2 percentage points from DroneDeploy. That year-over-year rate accelerated from 16% in each of the prior two quarters. The company said revenue and margins came in above the high end of its guidance.

President and CEO Ajei Gopal said Procore made Procore AI’s digital coworkers generally available and is working toward an AI-native construction management platform. Chief Financial Officer Rachel Pyles said the quarter reflected continued execution across the core business and that the company is raising its full-year revenue and margin outlook.

GAAP operating margin was (2%) and non-GAAP operating margin was 23%, versus GAAP 1% and non-GAAP 21% in the second quarter. A year earlier, GAAP operating margin was (4%) and non-GAAP operating margin was 17%. GAAP gross margin was 80% and non-GAAP gross margin was 84%, unchanged from the second quarter.

GAAP results included $26.6 million of acquisition-related expenses in the quarter, versus $1.1 million a year earlier. Non-GAAP income from operations was $94.4 million. GAAP net loss was $4.6 million, or $0.03 a share, versus a $9.1 million loss, or $0.06 a share, a year earlier. Non-GAAP net income was $77.4 million, or $0.51 a share.

Operating cash inflow was $96 million, up 8% year over year. Free cash inflow was $73 million, up 8% year over year. Gross revenue retention was 95%, matching the first and second quarters. Organic customers contributing more than $100,000 of annual recurring revenue totaled 2,968 as of September 30, 2026, up 14% year over year, after 2,871 as of June 30.

The company acquired DroneDeploy and its 3D ground/aerial reality capture technology to expand visual intelligence and AI capabilities. It also introduced Asset Register, launched Ground Pro via DroneDeploy, and at Groundbreak 2026 announced a voice-first mobile experience, Procore AI Go, and collaborations with NVIDIA and IBM.

For the fourth quarter of 2026, Procore expects revenue of $420 million to $422 million, including $19 million of inorganic DroneDeploy revenue, or 20.3% to 20.9% year-over-year growth. Non-GAAP operating margin is expected at 15.5% to 16.0%.

Full-year 2026 revenue is now expected at $1,557.0 million to $1,559.0 million, including $24 million of inorganic DroneDeploy revenue, or 17.7% to 17.9% year-over-year growth, versus a prior range of $1,510 million to $1,514 million. Full-year non-GAAP operating margin is expected at 19.0% to 19.5%, versus a prior range of 18.5% to 19.0%. Free cash flow margin is expected at 18.0%, including about $23 million of one-time DroneDeploy cash payments, or 19.5% excluding those payments. Full-year 2027 non-GAAP operating margin remains expected at 25%.

On October 30, 2026, the board authorized a new $300 million stock repurchase program after the prior $300 million authorization expired on November 3, 2026. The company said it intends to repurchase opportunistically from working capital; the program expires October 30, 2027.