* "They" is a pronoun (it replaces a noun).
* "Are" is a verb.
So, while "they're" itself is a contraction, the word "they" within it is a pronoun.
* "They" is a pronoun (it replaces a noun).
* "Are" is a verb.
So, while "they're" itself is a contraction, the word "they" within it is a pronoun.