# Procore Technologies, Inc. (PCOR) — InvestMoat Analysis

_Last analyzed: October 3, 2026_
_Asset class: equity · Canonical page: https://investmoat.com/stocks/pcor_

## Scores

| Dimension | Score (0–100) |
| --- | --- |
| Moat durability | 65 |
| Growth trajectory | 73 |
| Valuation | 74 |
| **Composite** | **71** |

Scores are computed deterministically from this asset’s data by the InvestMoat formula (see https://investmoat.com/llms.txt for methodology). Scores are not directly comparable across asset classes.

## Key stats

- **Ticker:** PCOR
- **Market Cap:** ~$7.9B

## Moat

Procore is one of the most widely used cloud platforms for running a construction project: drawings, RFIs, submittals, budgets, change orders, inspections and daily logs for the general contractor, owner and subcontractors in one place. It prices on annual construction volume with unlimited users, so every subcontractor and owner on a project is invited in free, which spreads the product across the industry. The protection is real switching cost and a growing collaborator network, but the project, not the company, is the unit of switching, and Autodesk, Trimble and Oracle all sell rival suites.

### The Jobsite Record

Procore's edge is **being the shared project record that every party on a jobsite already logs into**, rather than owning a licence or a unique dataset:

- **Unlimited Users, Priced on Volume:** Procore charges by annual construction volume, typically a fraction of a percent of hard costs, and does not charge per seat. A general contractor can invite every subcontractor, architect and owner rep onto a project at no extra cost, which is how the platform reached more than three million users. Because pricing tracks construction dollars rather than people, AI tools that cut headcount do not shrink the bill the way they threaten seat-based software.
- **The Project Record Is Hard to Move Mid-Job:** Once a project's drawings, RFIs, submittals and change orders live in Procore, that history is what disputes, closeout and warranty work rely on, so contractors almost never move a live project. Gross retention has held at 95%. The weakness is that each new project is a fresh decision: a contractor can start the next job on Autodesk Construction Cloud without migrating anything, which is why net retention is only 106%.
- **Collaborator Network and the AI Layer:** Subcontractors who learn Procore on one general contractor's job arrive at the next one already trained, and owners increasingly specify it. Procore is adding AI agents built on the Datagrid technology and is buying DroneDeploy for about $845 million to bring drone and jobsite reality capture into the record. Both deepen the record, but rivals are building the same AI features on their own project data.

**Moat verdict:** Procore is more exposed to AI than its pricing suggests and less than the stock price implies. Volume-based pricing protects revenue from seat cuts, and the project record and collaborator network are AI-resilient, but none is category-defining: rivals hold similar project data and each new project can be won by Autodesk or Trimble. AI agents and DroneDeploy could deepen the record if they make Procore the place jobsite work gets done, and that is the path to a strong pillar.

### Top competitors

- **Autodesk (ADSK):** Autodesk Construction Cloud, built on Revit and BIM design data.
- **Trimble (TRMB):** Viewpoint and e-Builder construction ERP and project tools.
- **[Oracle (ORCL)](https://investmoat.com/stocks/orcl):** Aconex and Primavera for large owner-led projects.

## Growth

Q2 2026 revenue rose 16% to $375 million, and Procore posted its first quarter of GAAP operating profit, with net income of $16.9 million and a 21% non-GAAP operating margin. Free cash flow was $65 million. Full-year 2026 revenue is guided to $1,510–1,514 million (+14.5% at the high end) with a 19.5% free cash flow margin, and management targets a 25% non-GAAP operating margin in 2027. Q3 is guided to +13%, a slowdown, but current RPO grew 22% and total RPO 24%, and international revenue rose 23%. FY2025 revenue was $1,323 million (+15%). DroneDeploy, which Procore is buying for about $845 million and which has about $78 million of trailing revenue, is expected to close later in 2026 and is funded with cash and up to $700 million of bridge debt.

- **Revenue CAGR estimate:** 11–14%
- **Primary type:** both
- **Margin trend:** expanding
- **Key risk (moderate):** If US non-residential construction starts fall for two consecutive quarters through 2027, or Autodesk Construction Cloud wins a rising share of new projects at existing Procore customers, net retention slips below 105% and growth falls toward 10%, below the 12–15% band.
- **Drivers:**
  - US core platform (project management, financials, quality and safety) — Most of the $375M Q2 revenue; company growth +16% in Q2 slowing to a +13% Q3 guide and an implied ~+12% Q4 (decelerating)
  - International — +23% YoY in Q2 2026 (+19% constant currency); no earlier rate disclosed in this file, so held stable (stable)
- **Score derivation:** Base 76.4 (12.5% midpoint of 11–14%) − 2 trajectory (US core decelerating, international stable) + 4 expanding margin (non-GAAP operating margin 21% in Q2 vs 14% for FY2025, 25% targeted for 2027) − 5 moderate risk (construction cycle and Autodesk/Trimble competition for new projects) = 73

## Valuation

At the $51.72 close on September 30, 2026 Procore sits between the $34 bear case and the $62 base case, about 17% below the base. The stock fell about 14% in September and is down about a third in 2026 on fears that AI will erode software pricing. On roughly $1.54 of FY2026 non-GAAP EPS (two reported quarters plus consensus) it trades near 34× this year and about 23× an estimated $2.20 for 2027 if the 25% margin target is hit; enterprise value is about 5× forward revenue and about 27× this year's free cash flow.

**Fair value:** $62 — The base of $62 is about 28× an estimated $2.20 of FY2027 non-GAAP EPS, which assumes the 25% margin target is met on low-teens organic growth plus DroneDeploy. The $2.20 is inferred from the margin target rather than taken from consensus. The multiple sits a few turns below VEEV's ~31× and TEAM's ~32× base multiples because Procore grows more slowly than both and earns about half VEEV's margin, and the base sits below the $68 Street mean. The bear at $34 is about 18× a bear-case ~$1.90, where the margin target slips to 2028. The bull at $92 is struck on FY2028 EPS, a year further out than the bear and base.

| Multiple | Value | Note |
| --- | --- | --- |
| Trailing P/E (GAAP) | n/m | GAAP profit only from Q2 2026 |
| Forward P/E (FY2026) | ~34× | ~$1.54 non-GAAP EPS |
| Forward P/E (FY2027E) | ~23× | ~$2.20 est. at 25% margin |
| PEG Ratio | ~1.2× | FY27 P/E ÷ ~20% EPS CAGR |
| EV / Sales (NTM) | ~5× | ~$1.6B NTM revenue |
| Price / FCF | ~27× | ~$295M FY2026 FCF guide |

On this year's earnings Procore looks expensive, but margins are rising fast: the 2027 target takes non-GAAP operating margin from 14% in 2025 to 25%, so earnings grow far faster than revenue. At about 23× estimated 2027 earnings and a PEG near 1.2, it is cheaper than VEEV and TEAM on forward earnings, which fits its slower growth and lower margin. The case depends on the margin target being met while growth holds in the low teens. _(as of September 30, 2026)_

## Price scenarios

### Bear — $34

Construction slows, new-project wins shift toward Autodesk, growth falls to about 10%, the margin target slips to 2028 and the multiple compresses to about 18×.

- US non-residential starts decline through 2027 and construction-volume pricing stops rising, pulling revenue growth toward 10%
- Net retention falls below 105% as customers start new projects on Autodesk Construction Cloud or Trimble
- DroneDeploy integration and the bridge debt delay the 25% margin target to 2028, leaving FY2027 non-GAAP EPS near $1.90
- About 18× ~$1.90 of FY2027 EPS gives $34

### Base — $62

Organic growth holds in the low teens, the 25% margin target is met in 2027, and the market pays about 28× earnings.

- FY2026 revenue lands near the $1,512M guide and FY2027 grows low teens organically plus DroneDeploy
- Non-GAAP operating margin reaches about 25% in 2027 and free cash flow margin passes 20%
- Gross retention stays at 95% and current RPO keeps growing faster than revenue
- About 28× an estimated $2.20 of FY2027 non-GAAP EPS supports $62

### Bull — $92

AI agents and DroneDeploy raise revenue per customer, growth recovers to about 17%, and Procore is re-rated as a vertical-software compounder.

- Paid AI agents and reality capture lift net retention back above 110%
- International keeps growing above 20% and becomes a larger share of revenue
- Operating margin exceeds 25% in 2027 and moves toward 30% in 2028
- About 33× an FY2028 EPS near $2.80 supports $92

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