Procore: 2Q26 Review — Revenue and Margins Ahead; Initial FY27E EBIT Margin Guide Warrants Upgrades; Another Strategic Acquisition Announced; Remain OW

研报英文原文证据摘录

Procore: 2Q26 Review — Revenue and Margins Ahead; Initial FY27E EBIT Margin Guide Warrants Upgrades; Another Strategic Acquisition Announced; Remain OW

y Adj. EPS - 27E ($) 1.93 2.28 18.4%

anchor that materially de-risks the medium-term margin thesis. 2) cRPO grew

22% yoy, accelerating 100bps sequentially, with management attributing the Quarterly Forecasts (FYE Dec)

majority of the acceleration to stronger underlying bookings rather than Adj. EPS ($)

contract duration, a more constructive characterization than 1Q26; CEO Ajei 2025A 2026E 2027E

Q1 0.23 0.34A 0.52

Gopal noted the strength was broad-based across geographies, stakeholder Q2 0.35 0.47A 0.55

types, and customer sizes, with particular momentum in large deals and data Q3 0.42 0.41 0.60

center wins. 3) Revenue grew 15.8% yoy (compared to ~15.7% in the prior Q4 0.37 0.39 0.61

FY 1.37 1.61 2.28

quarter). We have seen consistent revenue growth acceleration across four

quarters in a row, driven by large deal execution including the largest EMEA Style Exposure

contract in PCOR's history ($7M, a European hyperscale AI data center

builder) and the KSIA airport win in Saudi Arabia; we are encouraged that the

growth re-acceleration was not dependent on a single vertical or geography. 4)

Non-GAAP EBIT margin of 21.5% expanded 800bps yoy and came in

~300bps ahead of both estimate sets, with S&M leverage (34% of revenue non-

GAAP, -300bps yoy) and G&A efficiency (11% of revenue non-GAAP, -

200bps yoy) as the primary drivers; CFO Pyles noted that AI efficiencies

represent an incremental tailwind to the cost structure going forward. 5) FCF

of $64.5M (17% margin) significantly exceeded both JPMe and the Street, with

FY26E FCF margin guidance raised 50bps to 19.5%, implying ~310bps of yoy

expansion.