Procore Technologies, Inc.

Q1 total revenue was $359 million, up 15.7% year over year. Non-GAAP operating income was $61 million, with non-GAAP operating margin of 17%, up 650 basis points year over year. Free cash flow was $56 million, up 20% year over year. Current RPO grew 21% year over year and current deferred revenue grew 17% year over year. For Q2 FY26, Procore expects revenue of $364 million to $366 million and non-GAAP operating margin of 17.5% to 18.5%. For FY26, revenue is guided to $1.499 billion to $1.53 billion, non-GAAP operating margin to 18% to 18.5%, and free cash flow margin is maintained at 19%.

Ajei Gopal framed the quarter as strong execution in a still-challenging construction environment, saying Procore exceeded the high end of guidance and is continuing its momentum from 2025. He emphasized Procore AI as a core strategic opportunity, highlighting fast integration of Datagrid, new AI agents, and a planned broader sales rollout in Q3. His tone was confident and optimistic, but he repeatedly tied the strategy back to Procore’s existing platform, customer trust, and system-of-record advantages.

Rachel Pyles focused on durable growth, margin expansion, and disciplined capital allocation. She reiterated priorities of organic investment first, targeted M&A second, and opportunistic share repurchases third, and said Procore wants to compound free cash flow per share. On the numbers, she cited $359 million of revenue, $61 million of non-GAAP operating income, 17% margin, and $56 million of free cash flow, then noted that AI could create modest gross margin headwinds from compute but more than offset them through operating expense efficiencies and lower long-term costs.

Analysts pressed on why the revenue beat was smaller than prior quarters and why full-year guidance implies second-half weighting; management said the pattern was consistent with prior Q4/Q1 beats and that the guide reflects a high-conviction, beat-and-raise approach, with the apparent second-half shape described as mechanical. Questions also focused on Procore AI monetization, the timing of broader sales rollout, and whether AI adoption could drive operating leverage; management said consumption-based monetization is the path for agentic solutions, broader sales enablement should come in Q3, and meaningful internal efficiency gains are expected in 2027 and beyond. Other questions covered CRPO normalization, which Rachel said should converge with revenue growth 3 to 4 quarters after contract-duration stabilization, plus government, international, specialty contractors, and packaging, all of which management described as longer-term or early-stage opportunities with positive customer feedback.