Procore Technologies, Inc. (NYSE:PCOR) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Procore Technologies, Inc. (NYSE:PCOR) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to US$52.96 in the week after its latest quarterly results. Revenues of US$359m arrived in line with expectations, although statutory losses per share were US$0.06, an impressive 33% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Procore Technologies' 21 analysts is for revenues of US$1.50b in 2026. This reflects a solid 9.6% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Procore Technologies forecast to report a statutory profit of US$0.0092 per share. Before this latest report, the consensus had been expecting revenues of US$1.49b and US$0.086 per share in losses. While there's been no material change to the revenue estimates, there's been a pretty clear upgrade to earnings estimates, with the analysts expecting a per-share profit compared to previous expectations of a loss. So it seems like the latest results have led to a significant increase in sentiment for Procore Technologies.

See our latest analysis for Procore Technologies

There's been no major changes to the consensus price target of US$69.32, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Procore Technologies at US$95.00 per share, while the most bearish prices it at US$55.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Procore Technologies' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2026 being well below the historical 23% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Procore Technologies.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Procore Technologies to become profitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Procore Technologies' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Procore Technologies going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Procore Technologies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.