Construction management software provider Procore Technologies (NYSE:PCOR) reported Q4 CY2025 results topping the market’s revenue expectations , with sales up 15.6% year on year to $349.1 million. Guidance for next quarter’s revenue was better than expected at $352 million at the midpoint, 0.8% above analysts’ estimates. Its non-GAAP profit of $0.37 per share was 3.8% above analysts’ consensus estimates.

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Revenue: $349.1 million vs analyst estimates of $340.8 million (15.6% year-on-year growth, 2.4% beat)

Adjusted EPS: $0.37 vs analyst estimates of $0.36 (3.8% beat)

Revenue Guidance for Q1 CY2026 is $352 million at the midpoint, roughly in line with what analysts were expecting

Operating Margin: -12.3%, up from -21.9% in the same quarter last year

Free Cash Flow Margin: 25.8%, up from 20% in the previous quarter

Customers: 17,850, up from 17,623 in the previous quarter

Billings: $464.5 million at quarter end, up 20.3% year on year

Market Capitalization: $7.56 billion

With a mission to build software for the people that build the world, Procore Technologies (NYSE:PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Procore Technologies’s 27% annualized revenue growth over the last five years was impressive. Its growth beat the average software company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Procore Technologies’s annualized revenue growth of 18% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Procore Technologies reported year-on-year revenue growth of 15.6%, and its $349.1 million of revenue exceeded Wall Street’s estimates by 2.4%. Company management is currently guiding for a 13.3% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 11.1% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds.

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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 punched in at $464.5 million in Q4, and over the last four quarters, its growth slightly outpaced the sector as it averaged 15.1% year-on-year increases. This performance aligned with its total sales growth and shows the company is successfully converting sales into cash. Its growth also enhances liquidity and provides a solid foundation for future investments.

Procore Technologies reported 17,850 customers at the end of the quarter, a sequential increase of 227. That’s a little better than last quarter and quite a bit above the typical growth we’ve seen over the previous year. Shareholders should take this as an indication that Procore Technologies’s go-to-market strategy is working well.

We were impressed by how significantly Procore Technologies blew past analysts’ billings expectations this quarter. We were also glad its customer growth accelerated. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 10.5% to $52.91 immediately following the results.

Sure, Procore Technologies had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.