Construction management software provider Procore Technologies (NYSE: PCOR) reported Q3 2026 results exceeding the market’s revenue expectations, with revenue up 18.7% year on year to $402.3 million. In addition, next quarter’s revenue guidance ($421 million at the midpoint) was surprisingly strong, coming in 6.5% above analysts’ consensus estimates. Its non-GAAP profit of $0.51 per share was 13% above analysts’ consensus estimates.

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“Q3 was another outstanding quarter, with revenue and margins above the high end of our guidance,” said Ajei Gopal, President and CEO of Procore. “We delivered new capabilities across our flagship products and made Procore AI’s digital coworkers generally available. We are well on our way to becoming a next-generation, AI-native construction management platform and a true system of intelligence for construction.”

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can deliver a good quarter or two, but the best consistently grow over the long haul. Procore Technologies’s revenue grew at a solid 25.5% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers.

Long-term growth matters most, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Procore Technologies’s annualized revenue growth of 15.7% over the last two years is below its five-year trend, but the results were still respectable.

This quarter, Procore Technologies reported year-on-year revenue growth of 18.7%, and its $402.3 million of revenue exceeded Wall Street’s consensus estimates by 4.8%. Management is guiding for a 20.6% year-on-year increase in revenue next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 12% over the next 12 months, according to S&P, a deceleration versus the last two years. This underwhelming projection indicates its products and services will face some demand challenges.

Billings

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Procore Technologies’s billings totaled $407.1 million in Q3, and over the last four quarters, growth was solid, averaging 18.1% year on year. This performance aligned with its total revenue growth, indicating healthy customer demand. The cash collected from customers also enhances liquidity and provides a foundation for future investments and growth.

Customer acquisition efficiency

The customer acquisition cost, or CAC, payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.

Procore Technologies is efficient at acquiring new customers, and its CAC payback period was 40.9 months this quarter. The company’s relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments.

Key takeaways from Procore Technologies’s Q3 results

Procore Technologies delivered a strong Q3, with billings well above analysts’ consensus estimates and adjusted operating income beating Wall Street’s estimates by a wide margin. Those were key positives in the quarter. Shares soared 11% to $70.13 immediately after the results.

Procore Technologies had a solid quarter, but looking at the bigger picture, is the stock a buy? When making that decision, it’s important to consider its valuation, business qualities and what happened in the latest quarter. Read our full research report here (it’s free).