Procore
PCOR
$44.32
-4.21%
Procore Technologies is a cloud-based construction management software provider, offering a SaaS platform that streamlines project management, financials, and field productivity for the construction industry. As a market leader in construction tech, it differentiates itself with an end-to-end platform that integrates design, BIM, and accounting. The current investor narrative centers on Procore's accelerating revenue growth and improving profitability trajectory, as the company narrows losses and generates positive free cash flow, signaling a potential inflection point toward sustained profitability.…
PCOR
Procore
$44.32
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 $68.21 and implied upside of +53.9% versus the current price.
Average Target
$68.21
0 analysts
Implied Upside
+53.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$50 - $95
Analyst target range
Procore is covered by 19 analysts, with a consensus recommendation of 'Buy' (mean rating 1.73 on a 1-5 scale). The average price target is $68.21, implying 48.4% upside from the current price of $45.95. The distribution leans bullish, with no sell ratings and a strong buy/overweight bias. The target range spans from a low of $50.00 to a high of $95.00. The high target of $95.00 assumes a successful acceleration in growth and margin expansion, potentially driven by AI features and international expansion. The low target of $50.00 reflects concerns about competitive pressure or macro headwinds. The wide spread ($45) indicates high uncertainty, but recent upgrades from Barclays and Citizens suggest growing confidence. The implied upside of nearly 50% signals that analysts see significant value at current levels, though the stock must execute to close the gap.
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Bulls vs Bears: PCOR Investment Factors
Procore presents a mixed picture: the bull case rests on accelerating revenue growth, improving profitability, strong free cash flow, and a valuation near historical lows, with analysts seeing nearly 50% upside. The bear case highlights a sustained downtrend, negative earnings, high PEG ratio, and competitive/macro risks. Currently, the bull side has stronger evidence given the fundamental improvements and attractive valuation, but the key tension is whether the accelerating growth and margin expansion can overcome the market's pessimism and the stock's technical downtrend. The single most important factor is the trajectory of revenue growth and profitability—if the company can sustain 15%+ growth and reach GAAP profitability, the stock could re-rate significantly; if growth decelerates or margins disappoint, the stock could test its 52-week low.
Bullish
- Accelerating Revenue Growth: Revenue grew 15.7% YoY in Q1 2026 to $359.3M, accelerating from 14.9% in Q4 2025 and 9.6% in Q1 2025, marking the third consecutive quarter of acceleration. This trend suggests strong subscription adoption and market penetration.
- Improving Profitability Trajectory: Net loss narrowed to $9.1M in Q1 2026 from $37.6M in Q4 2025, with net margin improving to -2.5% from -10.8%. Operating margin also improved to -1.5% from -11.6%, signaling the company is approaching breakeven.
- Strong Free Cash Flow Generation: Free cash flow reached $56.0M in Q1 2026, up from $27.9M in Q2 2025, with trailing twelve-month FCF of $257.1M. This indicates improving operational efficiency and a path to sustained profitability.
- Attractive Valuation vs. History: The trailing PS ratio of 8.26x is near the low end of its historical range (23.9x to 100.4x), suggesting the stock is relatively cheap compared to its own history. The forward PS of 4.16x implies a 31% discount to the software industry average of 6x.
Bearish
- Sustained Downtrend and Underperformance: The stock is down 37.3% over the past year, significantly underperforming the S&P 500's +18.4% gain. The current price sits at 55.8% of its 52-week range, indicating persistent selling pressure and lack of investor confidence.
- Negative Earnings and High Valuation: Despite improving margins, the company still reports negative EPS (-$0.06 in Q1 2026) and a trailing PE of -108.6x. The trailing PS of 8.26x is a 38% premium to the software industry average of 6x, leaving little room for error.
- High PEG Ratio and Growth Expectations: The PEG ratio of 15.63x is extremely high, indicating that the stock's valuation is not supported by its near-term earnings growth. This suggests the market is pricing in optimistic long-term growth that may not materialize.
- Competitive and Macro Risks: The construction software market is competitive, with players like Autodesk and Oracle. Additionally, the stock's beta of 0.75 indicates lower volatility, but the broader downtrend suggests macro headwinds (e.g., rising interest rates) could continue to pressure growth stocks.
PCOR Technical Analysis
Procore is in a sustained downtrend, with the stock down 37.3% over the past year, significantly underperforming the S&P 500's +18.4% gain. The current price of $45.95 sits at 55.8% of its 52-week range (low $38.03, high $82.32), indicating it is closer to the low end. This positioning suggests the market has priced in considerable pessimism, but the stock has not yet confirmed a bottom. Over the last month, Procore has rallied 14.6%, while the S&P 500 gained only 0.3%, showing a strong relative strength of +14.3%. However, the 3-month change is -17.1%, and the 6-month change is -32.7%, indicating that the short-term bounce is a countertrend move within a broader downtrend. The divergence between the 1-month rally and the 1-year decline could signal a potential reversal if sustained, but it may also be a dead-cat bounce. The 52-week low of $38.03 provides key support, while resistance is at the 52-week high of $82.32. A breakout above $82.32 would signal a trend reversal, while a breakdown below $38.03 could accelerate selling. With a beta of 0.75, Procore is less volatile than the market, meaning its downtrend has been more orderly than high-beta names, but also that rallies may lack explosive upside.
Beta
0.75
0.75x market volatility
Max Drawdown
-51.9%
Largest decline past year
52-Week Range
$38-$82
Price range past year
Annual Return
-39.6%
Cumulative gain past year
| Period | PCOR Return | S&P 500 |
|---|---|---|
| 1m | +10.8% | +0.2% |
| 3m | -22.0% | +5.2% |
| 6m | -31.8% | +8.6% |
| 1y | -39.6% | +19.0% |
| ytd | -36.7% | +9.7% |
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PCOR Fundamental Analysis
Procore's revenue growth is accelerating, with Q1 2026 revenue of $359.3 million growing 15.7% year-over-year, up from 14.9% in Q4 2025 and 9.6% in Q1 2025. This marks the third consecutive quarter of accelerating growth, driven by strong subscription adoption. The company's gross margin remains robust at 80.1% in Q1 2026, slightly up from 79.4% in Q4 2025, indicating pricing power and operating leverage. Net income improved to a loss of $9.1 million in Q1 2026 from a loss of $37.6 million in Q4 2025, and the net margin narrowed to -2.5% from -10.8%. Operating margin also improved to -1.5% from -11.6%, suggesting the company is approaching breakeven. Procore's balance sheet is healthy, with $399.4 million in cash and a debt-to-equity ratio of just 0.09. Free cash flow was $56.0 million in Q1 2026, up from $27.9 million in Q2 2025, and the trailing twelve-month FCF reached $257.1 million. The current ratio of 1.32 indicates adequate liquidity, and the company's ROE of -7.98% is negative but improving as losses narrow.
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?
Since Procore has negative net income (EPS of -$0.06), the price-to-sales (PS) ratio is the primary valuation metric. The trailing PS ratio is 8.26x, while the forward PS (based on estimated revenue of $2.63B) is approximately 4.16x, implying the market expects significant revenue growth. Compared to the software industry average PS of around 6x, Procore's trailing PS of 8.26x represents a 38% premium, but the forward PS of 4.16x is a 31% discount, reflecting high growth expectations. Historically, Procore's PS ratio has ranged from 23.9x in Q1 2026 to 100.4x in Q2 2021. The current trailing PS of 8.26x is near the low end of its historical range, suggesting the stock is relatively cheap compared to its own history. This low multiple likely reflects the market's skepticism about sustained growth and profitability, but if the company continues to improve margins, the multiple could expand.
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
595.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: Procore's primary financial risk is its history of losses, though losses are narrowing. The company reported a net loss of $9.1M in Q1 2026, but the net margin improved to -2.5% from -10.8% in Q4 2025. The debt-to-equity ratio is low at 0.09, and cash of $399.4M provides a cushion. However, the company's reliance on subscription revenue (80.1% gross margin) means any churn or slowdown in new customer additions could pressure margins. The negative ROE of -7.98% indicates the company is not yet generating returns on equity, though this is improving as losses narrow.
Market & Competitive Risks: Procore faces competition from established players like Autodesk and Oracle, which have larger resources. The stock's beta of 0.75 suggests lower market correlation, but the 37.3% decline over the past year indicates significant company-specific risk. The forward PS of 4.16x is a discount to the industry average of 6x, but the trailing PS of 8.26x is a premium, implying the market expects high growth. If growth decelerates, the multiple could contract further. The short ratio of 3.78 days indicates bearish sentiment, and the stock's 52-week low of $38.03 provides a key support level.
Worst-Case Scenario: In a worst-case scenario, if revenue growth decelerates below 10% due to competitive pressure or macro headwinds, and the company fails to achieve profitability, the stock could fall to its 52-week low of $38.03, representing a 17.2% decline from the current price of $45.95. If the broader market enters a recession, the stock could fall further, potentially to $30, based on historical drawdowns (max drawdown of -51.88% from the 52-week high of $82.32). This would represent a 34.7% loss from the current price.
