Procore Technologies (NYSE:PCOR) reported second-quarter results that exceeded its guidance, driven by broad-based demand, large contract wins and growth in international markets, while the construction software company also outlined an expanded artificial intelligence strategy centered on its planned acquisition of DroneDeploy.
Revenue for the second quarter totaled $375 million, up 15.8% from a year earlier, according to CFO Rachel Pyles. The company exceeded the high end of its revenue guidance by approximately 2.5%. International revenue rose 23% year over year, or 19% on a constant-currency basis.
Guidance Raised and Margin Targets Set
The company raised its full-year outlook for its organic business. Procore now expects 2026 revenue of $1.51 billion to $1.514 billion, representing 14.5% year-over-year growth at the high end of the range. It forecasts full-year non-GAAP operating margin of 18.5% to 19%, 50 basis points above its previous outlook, and free-cash-flow margin of 19.5%.
For the third quarter, Procore forecast revenue of $382 million to $384 million, representing 13.3% year-over-year growth at the high end, and a non-GAAP operating margin of 19% to 19.5%.
Pyles also introduced a fiscal 2027 non-GAAP operating-margin target of 25%, which she said would represent nearly 1,100 basis points of improvement from fiscal 2025. She emphasized that the target reflects confidence in the company’s cost structure rather than a revenue forecast, which Procore plans to provide in its normal planning cycle.
“This quarter’s performance is an initial step in a broader trajectory of profitable growth,” Pyles said.
DroneDeploy Deal Expands AI Strategy
Procore announced an agreement to acquire DroneDeploy for $845 million in cash. DroneDeploy provides reality-capture and robotic-automation technology, including tools using drones, ground robots, mobile devices and cameras to collect and analyze visual data from job sites.
DroneDeploy has generated approximately $78 million in trailing 12-month revenue, Pyles said. Procore expects the acquisition to be accretive to organic revenue growth and said it expects to absorb the near-term margin impact without changing its fiscal 2026 or fiscal 2027 margin outlook. The transaction is expected to close later in 2026.
The company has arranged committed bridge financing for most of the purchase price while it evaluates its longer-term capital structure, Pyles said. Procore’s financial outlook does not include any expected contribution from DroneDeploy.
President and CEO Ajei Gopal said the acquisition is intended to add “perception” capabilities to Procore’s AI strategy, allowing construction workflows to incorporate visual information captured by cameras, drones and robots. He described the company’s longer-term goal as developing digital coworkers that can collect information, reason over it and initiate actions within Procore’s collaborative platform.
DroneDeploy has captured 20 trillion square feet of visual construction data, Gopal said, including user annotations, construction-progress labels and more than 100,000 labeled safety issues. The company operates on more than 3 million job sites in over 180 countries, according to Procore.
Procore and DroneDeploy already share nearly 600 customers, including Skanska and Turner. Gopal said Procore sees a near-term cross-selling opportunity among its thousands of existing customers that do not currently use DroneDeploy.
AI Products Move Into Broader Sales Effort
The DroneDeploy deal follows Procore’s January acquisition of Datagrid. After that acquisition, Procore integrated Datagrid’s technology and launched Procore AI through a limited specialist sales effort before expanding availability to the broader go-to-market organization.
Procore said it now offers 20 pre-built AI agents designed for construction workflows. The company cited early adopters including Haskell, Level 10 Construction and Consigli. At Consigli, Procore said AI tools used for tasks such as reviewing submittals, drafting requests for information and searching drawings reduced certain workflows substantially during tests; the contractor is now deploying Procore AI across 50 projects.
Gopal said Procore’s starter packages are intended to offer customers a lower-friction way to adopt AI tools in a limited number of projects and workflows before expanding use.
“The product has just gone GA, now it’s available to the broader sales force to position with their customers,” Gopal said, referring to general availability.
Data Centers and International Expansion Support Growth
Procore said it continues to outperform an uneven construction market. Gopal noted weakness in some sectors, including manufacturing, while data-center construction has remained especially strong amid investment tied to artificial intelligence.
The company said nine of the 10 largest North American data-center sites use Procore during construction. In the second quarter, Procore closed its largest contract in Europe, the Middle East and Africa: a nearly $7 million agreement with a European builder of hyperscale AI data centers operating across Europe, the United States and Asia-Pacific.
Procore also signed a contract with the King Salman International Airport project in Saudi Arabia, which will use the platform for unified digital construction management with strategic delivery partner TASAMA.
International business accounts for about 15% of Procore’s operations, while roughly 85% is domestic, Gopal said. The company is pursuing targeted expansion by pairing localized products, including its recently launched common data environment for Europe, with an expanded international go-to-market approach.
About Procore Technologies (NYSE:PCOR)
Procore Technologies, Inc engages in the provision of a cloud-based construction management platform and related software products in the United States and internationally. The company’s platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects. It offers Preconstruction that facilitates collaboration between internal and external stakeholders during the planning, budgeting, estimating, bidding, and partner selection phase of a construction project; and Project Execution, which enables real-time collaboration, information storage, design, BIM model clash detection, and regulation compliance for teams on the jobsite and in the back office.
