Trimble Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue was $966.8 million, representing a 7% year-over-year increase on both a reported and organic basis.
• Annualized recurring revenue (ARR) reached a record $2.56 billion, up 11% year-over-year and 10% on an organic basis.
• GAAP operating income was $142.0 million (14.7% of revenue), while non-GAAP operating income was $262.6 million (27.2% of revenue).
• GAAP net income was $59.1 million, compared to non-GAAP net income of $200.5 million.
• Diluted earnings per share (EPS) were $0.25 on a GAAP basis and $0.86 on a non-GAAP basis.
• Adjusted EBITDA was $278.5 million, or 28.8% of revenue.
• Gross margin was 68.2% on a GAAP basis and 70.5% on a non-GAAP basis.
• Free cash flow for the first three quarters of 2026 was $643.6 million, calculated as net cash provided by operating activities of $664.7 million less capital expenditures of $21.1 million.
• Total assets were $8,535.1 million as of the third quarter of 2026, down from $9,312.0 million at year-end 2025, primarily driven by a reduction in goodwill from $5,239.7 million to $4,822.0 million.
• Total liabilities were $3,559.3 million, with long-term debt increasing to $1,443.3 million from $1,392.2 million at year-end 2025.
• Deferred revenue totaled $920.1 million ($797.8 million current and $122.3 million non-current).

Guidance and Future Outlook:

• Full-year 2026 revenue guidance is set between $3,910 million and $3,940 million.
• Full-year 2026 GAAP loss per share guidance is between $0.55 and $0.49, assuming a tax rate range of 618.3% to 372.6%.
• Full-year 2026 non-GAAP earnings per share guidance is between $3.63 and $3.69, assuming a tax rate of 17.2%.
• Fourth quarter 2026 revenue guidance is between $1,031 million and $1,061 million.
• Fourth quarter 2026 GAAP EPS guidance is between $0.83 and $0.89, assuming a tax rate of approximately 11.4%.
• Fourth quarter 2026 non-GAAP EPS guidance is between $1.13 and $1.19, assuming a tax rate of 17.1%.

Business Segments and Product Lines:

• AECO Segment: Generated $395.0 million in revenue for the third quarter of 2026, with an operating income of $132.2 million (33.5% margin). For the first three quarters, revenue was $1,174.6 million with an operating income of $374.3 million (31.9% margin).
• Field Systems Segment: Generated $435.8 million in revenue for the third quarter of 2026, with an operating income of $128.7 million (29.5% margin). For the first three quarters, revenue was $1,287.5 million with an operating income of $392.5 million (30.5% margin).
• T&L Segment: Generated $136.0 million in revenue for the third quarter of 2026, with an operating income of $35.7 million (26.3% margin). For the first three quarters, revenue was $416.6 million with an operating income of $103.4 million (24.8% margin).
• Revenue is split between Product ($324.3 million in Q3 2026) and Subscription and services ($642.5 million in Q3 2026).

Market and Competitive Landscape:

• The company operates across the physical and digital worlds, serving construction, geospatial, and transportation industries.
• Management highlighted the company's "unmatched breadth and depth of connected industry data" as a competitive advantage.
• The T&L segment goodwill impairment of $562.0 million in the first three quarters of 2026 was triggered by a sustained decline in market capitalization and stock price reflecting heightened macroeconomic uncertainty and lower market multiples for software businesses.

Risks and Challenges:

• Risks include the inability to market, manufacture, and ship new products; difficulties integrating new acquisitions; and challenges in consummating divestitures.
• Macroeconomic factors such as evolving trade policies, supply chain disruptions, slowing growth, inflationary pressures, and interest rate fluctuations may adversely affect demand and costs.
• Inventory levels at dealers and changes in distribution channels pose potential risks.
• Geopolitical tensions, including the ongoing Middle East conflict, and volatility in the political and economic environment present risks.
• Foreign currency exchange rate fluctuations and the pace of the transition to a subscription business model are cited as risks.
• Risks associated with AI and AI-related developments, as well as the ability to maintain effective internal controls over financial reporting, are noted.

Management Commentary and Tone:

• Rob Painter, President and CEO, stated that third quarter results "surpassed expectations on both revenue and earnings per share."
• Management expressed confidence in the execution of the "Connect & Scale" strategy, which aims to compound value across the Trimble-led ecosystem.
• The tone indicates strong performance in recurring revenue, highlighted by the record ARR of $2.56 billion.

Other Key Points:

• During the third quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million.
• For the first three quarters of 2026, total repurchases of common stock were $552.9 million.
• A goodwill impairment charge of $562.0 million was recorded in the first three quarters of 2026, impacting GAAP net loss for the period to $(313.7) million.
• Acquisitions of businesses, net of cash acquired, totaled $236.5 million for the first three quarters of 2026.
• Proceeds from debt and revolving credit lines were $1,158.7 million for the first three quarters of 2026, while payments on debt totaled $1,018.5 million.
• The company provides non-GAAP financial measures including Non-GAAP gross margin, operating expenses, operating income, non-operating expense, net, income tax provision, net income, diluted net income per share, Adjusted EBITDA, and Free Cash Flow.