Update shared on 05 Dec 2025
Analysts have modestly raised their price target on Procore Technologies, citing improving long term profit margin expectations. The valuation framework implies a move of roughly a few dollars per share while keeping fair value anchored around the mid 80 dollar range.
What's in the News
- Board of Directors authorizes a new share repurchase program of up to $300 million, funded from working capital and running through November 3, 2026 (company announcement).
- Company provides an update on the existing buyback, having repurchased 404,433 shares in the latest tranche and completing 1,903,527 shares in total for $128.82 million under the authorization announced on October 30, 2024 (buyback update).
- Management issues earnings guidance for fourth quarter 2025 with revenue expected between $339 million and $341 million, implying 12% to 13% year over year growth, and full year 2025 revenue of $1,312 million to $1,314 million, up 14% year over year (guidance release).
- Procore unveils expanded AI capabilities within its Procore Helix intelligence layer, including Procore Assist and Agent Builder to automate workflows, enhance project insights, and support multilingual, mobile use cases across construction projects (product announcement).
- Company appoints Ajei Gopal as Chief Executive Officer Designate, with a planned transition following third quarter 2025 results, while founder Tooey Courtemanche moves to focus on his role as Chair of the Board (leadership change announcement).
Valuation Changes
- Fair Value: Unchanged at approximately $86.44 per share, indicating no shift in the intrinsic value estimate.
- Discount Rate: Risen slightly from about 8.42% to 8.44%, reflecting a modest increase in the assumed cost of capital.
- Revenue Growth: Essentially unchanged, holding at roughly 14.39% in the updated model.
- Net Profit Margin: Risen meaningfully from about 2.43% to 3.55%, signaling improved long term profitability expectations.
- Future P/E: Fallen significantly from around 411.2x to 281.3x, suggesting a lower multiple applied to forward earnings in the valuation framework.
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