PCOR Q3 2025 Deep Dive: Leadership Transition and Platform Expansion Drive Results

Construction management software provider Procore Technologies (NYSE:PCOR) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 14.5% year on year to $338.9 million. The company expects next quarter’s revenue to be around $340 million, close to analysts’ estimates. Its non-GAAP profit of $0.42 per share was 29.9% above analysts’ consensus estimates.

Is now the time to buy PCOR? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Procore Technologies delivered a Q3 performance that exceeded Wall Street’s expectations, highlighted by its 14.5% revenue growth and notable margin improvement. The positive market reaction reflected confidence in the company’s ability to expand its customer base and secure larger deals, especially as management credited its unified construction platform and improved go-to-market execution. CEO Craig Courtemanche emphasized the company’s market share gains despite ongoing industry headwinds, noting that large enterprise customers are increasingly standardizing on Procore’s solutions. Courtemanche remarked, “This quarter, Procore reached another exciting milestone, surpassing $1 trillion in annual construction volume contracted to our platform across all global stakeholders.”

Looking ahead, Procore’s outlook is shaped by expectations for continued market share gains, operational efficiency improvements, and further margin expansion. Management pointed to upcoming product innovations—especially in artificial intelligence and resource management—as key levers for future growth. With the appointment of Ajei Gopal as the new CEO, the company anticipates leveraging his track record in scaling global technology businesses. Senior Vice President Matthew Puljiz stated, “We are guiding for 400 basis points of non-GAAP EBIT expansion this year. I think that’s a very doable number next year.”

Key Insights from Management’s Remarks

Management attributed Q3’s performance to strong customer demand for its unified platform, successful execution of its go-to-market strategy, and traction in large enterprise accounts.

• Go-to-market enhancements: Management reported higher pipeline conversion rates, improved expansion among existing customers, and lower sales headcount attrition, attributing these outcomes to recent changes in go-to-market operations that emphasize customer engagement and resource allocation.
• Enterprise deal momentum: The company saw a 31% year-over-year increase in large six- and seven-figure deals, including significant wins with data center operators, healthcare organizations, and large real estate developers. These deals often replaced fragmented legacy systems with Procore’s unified platform.
• Resource management investments: Management highlighted advances in resource management offerings, noting that new features in labor, equipment, and materials tracking are resonating with customers and driving upsell opportunities. The upcoming launch of materials management is expected to complete this suite.
• AI-driven platform strategy: At its Groundbreak conference, Procore showcased new artificial intelligence initiatives, including “Agentic” roadmap projects that leverage its proprietary construction data. Management believes these capabilities will enhance productivity for customers and reinforce platform differentiation.
• Longer contract commitments: Customers are increasingly opting for longer contract durations, often through pooled contract models. Management views this as a sign of deeper customer commitment and platform reliance, though it notes this dynamic can temper net revenue retention metrics in the short term.

Drivers of Future Performance

Procore’s management expects future performance to be driven by ongoing product innovation, operational discipline, and the integration of new leadership priorities.

• AI and analytics expansion: Management sees artificial intelligence features and advanced analytics as central to the company’s value proposition, aiming to help construction clients improve efficiency and decision-making. The company’s proprietary data corpus is expected to support further differentiation.
• Leadership transition and global scaling: With Ajei Gopal assuming the CEO role, Procore intends to leverage his experience in scaling global technology businesses and building partner ecosystems. Management anticipates new strategic initiatives aimed at expanding the company’s international presence and partner network.
• Margin expansion focus: Management reiterated its commitment to profitability, targeting further non-GAAP operating margin improvement while still investing in growth areas. The company believes its business model offers substantial margin leverage and expects to balance these priorities under new leadership.

Catalysts in Upcoming Quarters

Our analysts will be closely tracking (1) the rollout and customer adoption of Procore’s new AI-powered features and resource management modules, (2) the early impact of Ajei Gopal’s leadership on strategic direction and international expansion, and (3) the evolution of contract duration trends as a signal of customer commitment. Execution on these milestones will be key to sustaining growth and profitability.

Procore Technologies currently trades at $75.50, up from $71.52 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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