Comments made on this call include forward-looking statements regarding, among other things, our financial outlook, platform and products, customer demand, operations, and macroeconomic and geopolitical conditions. Continuing our momentum from 2025, Q1 saw strong performance that exceeded the high end of our guidance. For Q1, we delivered 15.7% revenue growth and 17% non-GAAP operating margin, which represents 650 basis points of year-over-year expansion. On our last earnings call, I outlined why Procore will be an AI winner.
Our flagship products and early investments in AI, including our acquisition of Datagrid, has positioned us well to capitalize on this disruptive technology. Building on our flagship system of collaboration with nearly 3 million active users and a massive proprietary dynamic data set, Procore AI can deliver outcomes simply not possible with traditional software. This also opens a meaningful new dimension to our TAM, as Procore AI can access construction labor budgets well beyond the industry's software spend. Finally, I'll discuss our intention to continue to improve margins and free cash flow per share.
Let me start with Procore AI, which includes our recent acquisition of Datagrid. Our solution enables customers to deploy embedded Procore AI agents that can execute tasks such as RFI analysis, submittal cross-checking, and compliance auditing. This data and context can only be accessed within a system of record and collaboration like Procore. We expect that these new product capabilities will help to drive sales, increase customer satisfaction, and improve retention.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | Q2 2026 | $364 million-$366 million (13% YoY growth at the high end) (new) |
| Non-GAAP operating margin | Q2 2026 | 17.5%-18.5% (new) |
| Revenue | Full-year 2026 | $1.499 billion-$1.503 billion (13.6% YoY growth at the high end) (raised) |
| Non-GAAP operating margin | Full-year 2026 | 18%-18.5% (390-440 bps expansion) (raised by 50 bps) |
| Free cash flow margin | Full-year 2026 | 19% (approximately 280 bps expansion) (maintained) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +15.7% | Healthy demand across the customer base, significant new logo wins, larger-scale engagements, and strong pipeline. |
| Non-GAAP operating margin | +650 bps to 17% | Continued margin expansion alongside durable top-line growth. |
| Free cash flow | +20% to $56 million | Durable top-line growth combined with year-over-year margin expansion. |
| Current RPO | +21% | Strength in the quarter, benefiting primarily from longer average contract duration. |
| Six-plus figure ARR wins | +24% | Meaningful shift toward larger-scale engagements. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Procore AI / Datagrid integration | Datagrid acquired earlier in the year; AI strategy outlined | Technology integration proceeded rapidly; combined Procore AI roadmap executing, with new capabilities like agent event triggers, voice AI interface pilot, and a contract review agent | Accelerating |
| Construction macro environment | Stable over prior quarters | Pretty stable demand, with excitement around data centers | Stable |
| AI go-to-market | Small dedicated specialist overlay team | Translating learnings into broader sales force enablement; expect much of sales organization selling Procore AI in Q3 | Scaling |
| cRPO vs revenue convergence | Benefiting from longer contract duration | Durations roughly flat Q4 to Q1; expected to take three to four quarters after stabilization to converge with revenue growth | Normalizing |
| AI monetization model | ACV-based pricing for flagship | Expect capacity-based / consumption-based (token-based) licensing for agentic solutions | Evolving |