Procore Technologies posted quarterly results that exceeded Wall Street’s expectations, with the market responding positively to the company’s demonstrated resilience despite a challenging construction environment. Management attributed the performance to robust upmarket momentum, product expansion, and continued customer wins—particularly among large general contractors and owners. CEO Ajay Gopal highlighted the company’s ability to displace incumbent vendors and win back customers, noting, “The value of Procore creates an advantage that price alone cannot match.” The addition of new enterprise clients and the expansion of existing relationships were key to driving growth this quarter.
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Procore Technologies (PCOR) Q4 CY2025 Highlights:
- Revenue: $349.1 million vs analyst estimates of $340.8 million (15.6% year-on-year growth, 2.4% beat)
- Adjusted EPS: $0.37 vs analyst estimates of $0.36 (3.8% beat)
- Adjusted Operating Income: $51.89 million vs analyst estimates of $49.61 million (14.9% margin, 4.6% beat)
- Revenue Guidance for Q1 CY2026 is $352 million at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: -12.3%, up from -21.9% in the same quarter last year
- Customers: 17,850, up from 17,623 in the previous quarter
- Annual Recurring Revenue: $1.40 billion (15.6% year-on-year growth, beat)
- Billings: $464.7 million at quarter end, up 20.3% year on year
- Market Capitalization: $8.25 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Procore Technologies’s Q4 Earnings Call
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Saket Kalia (Barclays) asked about the competitive risk of customers building their own tools and AI adoption. CEO Ajay Gopal explained that customers lack the resources to develop such specialized tools, emphasizing Procore’s domain expertise and network effect as key differentiators.
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Adam Borg (Stifel) questioned the company’s competitive positioning and international strategy. CFO Howard Fu reported continued strong win rates and acknowledged that while international progress is slower than desired, the long-term opportunity remains substantial with ongoing investment in product-market fit.
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DJ Hines (Canaccord) inquired about renewal trends and the impact of volume commitments. Fu stated that commitments continue to grow, reflecting Procore’s ability to capture market share, and emphasized the broad-based nature of the company’s recent bookings strength.
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Matthew Martino (Goldman Sachs) probed the approach to monetizing AI and platform resourcing. Gopal indicated that new AI features will likely be bundled and may include consumption-based elements, while Fu confirmed sufficient capacity for growth without major changes to go-to-market investment.
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Ken Wong (Oppenheimer) asked about the relationship between margin expansion and revenue growth. Fu clarified that there is no trade-off, as the company optimizes for free cash flow per share and expects both top- and bottom-line improvements.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of AI adoption and the rollout of monetized digital coworker features, (2) the launch and customer uptake of new owner-focused and portfolio management products, and (3) progress in capturing government contracts enabled by FedRAMP certification. Additionally, we will track international expansion efforts and the company’s ability to maintain both revenue growth and margin improvement as operational investments scale.
Procore Technologies currently trades at $52.00, up from $47.88 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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