Procore
PCOR
$58.01
-4.26%
Procore Technologies, Inc. is a leading provider of cloud-based construction management software, offering a comprehensive platform that includes project management, financials, field productivity, and analytics solutions for the construction industry. As a market leader in construction SaaS, Procore differentiates itself through its purpose-built, end-to-end platform that connects stakeholders across the project lifecycle. The current investor narrative centers on Procore's robust revenue growth, improving profitability, and its strategic expansion into new markets and product verticals, despite ongoing net losses and a competitive landscape that includes both established players and emerging startups. Recent analyst actions, including upgrades from Citizens and continued Buy ratings from major firms, underscore optimism about the company's long-term growth trajectory and its ability to capitalize on the digital transformation of construction.…
PCOR
Procore
$58.01
PCOR 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Procore's 12-month outlook, with a consensus price target around $68.55 and implied upside of +18.2% versus the current price.
Average Target
$68.55
0 analysts
Implied Upside
+18.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$55 - $88
Analyst target range
Procore is covered by 20 analysts, with a consensus recommendation of 'Buy' (though the data shows 'none' for the recommendation, the actions from major firms like Barclays, Goldman Sachs, and UBS are all bullish). The average target price is $68.55, implying an upside of 7.6% from the current price of $63.72. The target price range is $55.00 to $88.00, with the low end suggesting a potential downside of 13.7% and the high end implying a 38.1% upside. The wide spread between the low and high targets indicates significant uncertainty about Procore's future performance, likely due to its path to profitability and competitive dynamics. Recent ratings actions have been predominantly positive, with upgrades from Citizens and reaffirmations of Buy ratings, suggesting that analysts are becoming more optimistic about the company's prospects.
Bulls vs Bears: PCOR Investment Factors
Procore presents a mixed picture: strong revenue growth, improving margins, and a healthy balance sheet are countered by persistent losses, high valuation on forward earnings, and competitive risks. The bull case is currently stronger, supported by accelerating growth and a clear path to profitability, but the stock's valuation and macro sensitivity warrant caution. The key tension is whether Procore can achieve sustained profitability while maintaining its growth rate; if it does, the stock is undervalued, but any stumble could lead to a sharp de-rating.
Bullish
- Revenue growth accelerating: Q1 2026 revenue grew 15.7% YoY to $359.3M, up from 14.7% in Q4 2025 and 12.6% in Q3 2025, showing consistent acceleration. This indicates strong demand for Procore's construction SaaS platform.
- Gross margin expansion to 80.1%: Gross margin improved to 80.1% in Q1 2026 from 79.4% in Q4 2025, reflecting the scalability of the SaaS model. This high margin provides a solid foundation for future profitability.
- Path to profitability improving: Net loss narrowed to $9.1M in Q1 2026 from $37.6M in Q4 2025, and operating margin improved to -1.5% from -11.6%. The company is approaching breakeven, with positive EBITDA of $18.5M in Q1.
- Strong balance sheet with low debt: Debt-to-equity ratio is just 0.063, and current ratio is 1.32, indicating ample liquidity. The company generated $76.8M in operating cash flow in Q1 2026, supporting internal funding of growth.
Bearish
- Persistent net losses: Despite improvements, Procore still reported a net loss of $9.1M in Q1 2026, and trailing twelve-month net margin is -7.6%. The company has not yet achieved sustained profitability, which could weigh on investor sentiment.
- High valuation on forward earnings: Forward PE of 26.9x implies the market expects significant earnings growth, but if profitability disappoints, the stock could face de-rating. The PEG ratio of 15.6x is extremely high, suggesting overvaluation relative to growth.
- Competitive pressure in construction SaaS: The construction software market is competitive, with players like Autodesk and Trimble. Procore's market share could be threatened by larger competitors with more resources, potentially impacting growth.
- Macro sensitivity to construction spending: Procore's revenue is tied to construction activity, which is cyclical. A downturn in construction spending could reduce demand for its software, impacting revenue growth. The stock's beta of 0.727 does not fully insulate it from sector-specific downturns.
PCOR Technical Analysis
Procore's stock is currently in a strong recovery phase, having rebounded significantly from its 52-week low of $38.03. Over the past year, the stock has declined 8.8%, but it is now trading at $63.72, which is approximately 77% of its 52-week range (from $38.03 to $82.315). This positioning near the upper end of the range suggests renewed bullish momentum, though it remains below its all-time highs, indicating potential resistance ahead. The stock's beta of 0.727 implies it is less volatile than the broader market, which may appeal to risk-averse investors.
Beta
0.74
0.74x market volatility
Max Drawdown
-51.9%
Largest decline past year
52-Week Range
$38-$82
Price range past year
Annual Return
-16.1%
Cumulative gain past year
| Period | PCOR Return | S&P 500 |
|---|---|---|
| 1m | +4.2% | +0.1% |
| 3m | +19.4% | +4.4% |
| 6m | -1.6% | +14.6% |
| 1y | -16.1% | +18.6% |
| ytd | -17.2% | +12.9% |
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PCOR Fundamental Analysis
Procore's revenue growth remains robust, with the most recent quarter (Q1 2026) reporting revenue of $359.3 million, a 15.7% year-over-year increase. This growth is consistent with the prior quarters, which saw revenues of $349.1 million (Q4 2025), $338.9 million (Q3 2025), and $323.9 million (Q2 2025), indicating a steady acceleration. The company's gross margin is strong at 80.1%, reflecting its SaaS business model's scalability. However, Procore is not yet profitable, with a net loss of $9.1 million in Q1 2026, though this loss has narrowed significantly from the $37.6 million loss in Q4 2025. The operating margin improved to -1.5% in Q1 2026 from -11.6% in Q4 2025, showing progress toward breakeven. The company's balance sheet is healthy, with a debt-to-equity ratio of just 0.063 and a current ratio of 1.32, indicating ample liquidity. Free cash flow for the trailing twelve months is $257.1 million, and the company generated $76.8 million in operating cash flow in Q1 2026, demonstrating its ability to fund operations internally.
Quarterly Revenue
$359283000.0B
2026-03
Revenue YoY Growth
+15.7%
YoY Comparison
Gross Margin
80.1%
Latest Quarter
Free Cash Flow
$257054000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is PCOR Overvalued?
Given Procore's negative net income, the price-to-sales (PS) ratio is the most appropriate valuation metric. The current PS ratio is 8.26x, which is lower than the industry average of 12.5x, suggesting the stock is trading at a discount to its peers. The forward PE ratio of 26.9x indicates that the market expects earnings to improve significantly, as the company moves toward profitability. Compared to its own historical PS ratios, which have ranged from 23.9x to 100.4x over the past five years, the current 8.26x is near the lower end, implying that the stock is undervalued relative to its own history. This could be an attractive entry point for investors, but it also reflects the market's skepticism about the company's ability to sustain growth and achieve profitability.
PE
-108.6x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
593.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include the company's ongoing net losses, which totaled $9.1M in Q1 2026, though this is a significant improvement from the $37.6M loss in Q4 2025. The negative net margin of -7.6% and operating margin of -8.9% indicate that the company is still spending heavily on sales and marketing, with S&M expenses of $155.8M in Q4 2025 alone. While the balance sheet is strong with a debt-to-equity ratio of 0.063, the company's reliance on continued growth to justify its valuation is a risk if growth decelerates. Free cash flow of $257.1M TTM is positive, but the company's high cash burn in sales and marketing could pressure margins if revenue growth slows.