Construction Tech SaaS
Procore Q2 2026: $375M revenue (16% YoY), first-ever GAAP operating profit, free cash flow up 507%. Full-year guidance raised to $1.51B.
Growth Overview
12-Month Trend
Growth Rate
Market Size Projection
Overview
Software for construction project management, estimating, scheduling, safety compliance, and field documentation. The construction management software market is worth $11.8B in 2026 and growing at 9.7% CAGR to reach $24.7B by 2034. Procore posted Q2 2026 revenue of $375M (up 15.8% YoY) with non-GAAP operating margin of 21.5% and its first quarter of GAAP operating profit. Free cash flow jumped 507% YoY to $65M. Full-year 2026 guidance was raised to $1.510-1.514B with a 19.5% free cash flow margin, and management is targeting a 25% non-GAAP operating margin in 2027. The pattern across contech is the same: vertical SaaS leaders are converting AI-era pricing power into durable profitability rather than buying growth. Global contech investment reached $6.57B in 2025 across 337 deals.
What's Driving This Growth?
- ▸439,000-worker labor shortage forcing productivity gains through software and AI adoption
- ▸Safety and compliance regulations tightening across all markets
- ▸AI-focused contech startups captured 46% of all contech funding in Q1 2025
- ▸90% of surveyed investors plan to increase or maintain ConTech investments in 2026
Market Signals
- ✓Procore Q2 2026 (Jul 29): $375M revenue (up 15.8%), non-GAAP operating margin 21.5%, first-ever quarter of GAAP operating profit; free cash flow $65M, up 507% YoY
- ✓Procore raised full-year 2026 guidance to $1.510-1.514B and guided 2027 non-GAAP operating margin to 25%; acquired vertical AI firm Datagrid in Jan 2026
- ✓Higharc raised a $95M Series C led by Insight Partners (Jun 2026) for AI homebuilding design-to-construction software (>$170M total); AI-focused ConTech funding hit $521M in Q1 2026, highest since 2021
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