Trimble Announces Fourth Quarter and Full Year 2025 Results and Initiates 2026 Guidance

Rhea-AI Summary

Trimble (Nasdaq: TRMB) reported fourth-quarter and full-year 2025 results and provided 2026 guidance on Feb 10, 2026. Q4 revenue was $969.8M (down 1% YoY, +4% organic) and ARR reached a record $2.39B (+6% YoY, +14% organic). Q4 GAAP operating income was $216.2M (22.3% margin); non-GAAP operating income was $313.1M (32.3% margin). Fiscal 2025 revenue totaled $3,587.3M (down 3% YoY, +6% organic). Trimble repurchased ~1.9M shares in Q4 ($148.1M) and ~12.2M shares in FY2025 ($875.4M). Management cited record margins and exceeded Q4 expectations.

Positive

• Record ARR of $2.39B, +6% year-over-year and +14% organic
• Repurchased ~12.2M shares for $875.4M during fiscal 2025
• Record fourth-quarter and full-year gross and operating margins

Negative

• GAAP diluted EPS $1.76 for FY2025 versus non-GAAP $3.13, a substantial gap

Key Figures

Q4 2025 Revenue: $969.8 million ARR: $2.39 billion Q4 GAAP Op Margin: 22.3% +5 more

8 metrics

Q4 2025 Revenue $969.8 million Fourth quarter 2025 revenue, down 1% YoY, up 4% organic

ARR $2.39 billion Annualized recurring revenue, up 6% YoY and 14% organic

Q4 GAAP Op Margin 22.3% GAAP operating income as a percentage of Q4 2025 revenue

Q4 Non-GAAP Op Margin 32.3% Non-GAAP operating income as a percentage of Q4 2025 revenue

Q4 GAAP EPS $0.65 Fourth quarter 2025 diluted EPS on a GAAP basis

Q4 Non-GAAP EPS $1.00 Fourth quarter 2025 diluted EPS on a non-GAAP basis

FY 2025 Revenue $3,587.3 million Full year 2025 revenue, down 3% YoY, up 6% organic

FY 2025 Buybacks $875.4 million Cash spent repurchasing approximately 12.2 million shares in fiscal 2025

Market Reality Check

Price: $68.88 Vol: Volume 2,173,836 is sligh...

normal vol

$68.88 Last Close

Volume Volume 2,173,836 is slightly below 20-day average 2,315,204 (relative volume 0.94) ahead of the earnings release. normal

Technical Shares at $66.93 are trading below the 200-day MA of $77.18, despite record 2025 profitability and ARR.

Peers on Argus

TRMB was up 1.18% pre-release, while key peers FTV, COHR, KEYS, TDY and GRMN gai...

TRMB was up 1.18% pre-release, while key peers FTV, COHR, KEYS, TDY and GRMN gained between 0.93% and 6.81%, indicating a generally supportive sector backdrop into the print.

Previous Earnings Reports

5 past events · Latest: Jan 27 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Earnings call notice	Neutral	-1.9%	Announcement of timing and access details for Q4 and full-year 2025 call.
Nov 05	Quarterly results	Positive	+2.5%	Q3 2025 beat with record ARR and raised full‑year revenue and EPS guidance.
Oct 23	Earnings call notice	Neutral	+0.9%	Scheduling and webcast details for the upcoming Q3 2025 earnings call.
Aug 06	Quarterly results	Positive	+1.7%	Q2 2025 results with record ARR and a raised full‑year 2025 outlook.
Jul 24	Earnings call notice	Neutral	+0.7%	Announcement of Q2 2025 earnings call timing and webcast access.

Pattern Detected

Earnings-related headlines have typically produced modest, mostly positive price moves, with no recent instances of clear negative divergence.

Recent Company History

Over the last few quarters, Trimble’s earnings cycle has featured steadily rising revenue, expanding ARR and multiple guidance raises. Q2 and Q3 2025 results both showed record ARR and led to higher full‑year guidance. Earnings call scheduling releases around Jul 24, Oct 23 and Jan 27 saw small but generally positive reactions. Against this backdrop, the new report of record ARR, record margins and the initiation of 2026 guidance continues a pattern of strengthening fundamentals and recurring revenue focus.

Historical Comparison

earnings

+0.8 %

Average Historical Move

Historical Analysis

In the past few earnings-related announcements, TRMB’s average move was about 0.78%, reflecting generally modest reactions even when results included record ARR and guidance raises.

Typical Pattern

Recent earnings updates show a progression from strong Q2 and Q3 2025 results with raised guidance to full-year 2025 records and the introduction of 2026 guidance, reinforcing a multi-quarter focus on ARR growth and margin expansion.

Market Pulse Summary

This announcement delivers record annualized recurring revenue of $2.39 billion, record gross and op...

Analysis

This announcement delivers record annualized recurring revenue of $2.39 billion, record gross and operating margins, and introduces 2026 guidance, extending a multi-quarter trend of stronger profitability and a shift toward recurring revenue. Prior quarters in 2025 also featured record ARR and guidance raises, while the company continued sizable buybacks. Investors may watch future earnings for ARR growth, operating margin stability and how results track against the new guidance within the broader instruments sector backdrop.

Key Terms

annualized recurring revenue, GAAP, non-GAAP, diluted earnings per share, +2 more

6 terms

annualized recurring revenue financial

"Annualized recurring revenue ("ARR") was $2.39 billion, up 6 percent year-over-year"

Annualized recurring revenue is the predictable income a business expects to earn over a year from ongoing customer subscriptions or contracts. It’s similar to estimating how much money you would make in a year if your current monthly income stayed the same. Investors use this figure to assess the stability and growth potential of a company's revenue stream.

GAAP financial

"GAAP operating income was $216.2 million, 22.3 percent of revenue"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

non-GAAP financial

"and non-GAAP operating income was $313.1 million, 32.3 percent of revenue"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

diluted earnings per share financial

"Diluted earnings per share ("EPS") was $0.65 on a GAAP basis"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

adjusted EBITDA financial

"Adjusted EBITDA was $324.8 million, 33.5 percent of revenue"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

organic basis financial

"down 1 percent on a year-over-year basis, up 4 percent on an organic basis"

"Organic basis" refers to the growth in a company's revenue or sales that comes from its existing operations, without including the effects of acquisitions, divestments, or other external changes. It shows how well a company's core business is performing on its own, much like tracking the natural growth of a plant without considering external factors. For investors, understanding organic growth helps assess the true strength and sustainability of a company's fundamental business.

AI-generated analysis. Not financial advice.

• Record annualized recurring revenue, reflecting ongoing execution of the Connect & Scale strategy
• Record fourth quarter and full year gross margins and operating income margins
• Fourth quarter results exceeded expectations
• Establishing full year 2026 guidance

WESTMINSTER, Colo., Feb. 10, 2026 /PRNewswire/ -- Trimble Inc. (Nasdaq: TRMB) today announced financial results for the fourth quarter and full year 2025.

Fourth Quarter 2025 Financial Highlights

• Revenue of $969.8 million, down 1 percent on a year-over-year basis, up 4 percent on an organic basis
• Annualized recurring revenue ("ARR") was $2.39 billion, up 6 percent year-over-year, up 14% on an organic basis
• GAAP operating income was $216.2 million, 22.3 percent of revenue, and non-GAAP operating income was $313.1 million, 32.3 percent of revenue
• GAAP net income was $156.6 million and non-GAAP net income was $240.8 million
• Diluted earnings per share ("EPS") was $0.65 on a GAAP basis and $1.00 on a non-GAAP basis
• Adjusted EBITDA was $324.8 million, 33.5 percent of revenue
• During the fourth quarter, Trimble repurchased approximately 1.9 million shares for $148.1 million

Executive Quote

"Our fourth quarter results surpassed expectations on both top and bottom lines, punctuating a strong close to 2025 and positioning us well to deliver on our 2027 financial targets," said Rob Painter, president and CEO of Trimble. "For the year, the Trimble team delivered record annualized recurring revenue of $2.39 billion, record fourth quarter revenue of $970 million, with record levels of gross margin and operating margin profitability. We thank all of our Trimble colleagues for their dedication and hard work in 2025, and we look forward to further executing and progressing Connect & Scale in 2026 and beyond."

Fiscal 2025 Financial Highlights

• Revenue of $3,587.3 million, down 3 percent on a year-over-year basis, up 6 percent on an organic basis
• GAAP operating income was $592.0 million, 16.5 percent of revenue, and non-GAAP operating income was $988.1 million, 27.5 percent of revenue
• GAAP net income was $424.0 million and non-GAAP net income was $756.3 million
• Diluted EPS was $1.76 on a GAAP basis, and $3.13 on a non-GAAP basis
• Adjusted EBITDA was $1,046.2 million, 29.2 percent of revenue
• During fiscal 2025, Trimble repurchased approximately 12.2 million shares for $875.4 million.

Forward-Looking Guidance

For the full-year 2026, Trimble expects to report revenue between $3,810 million and $3,910 million, GAAP earnings per share of $2.04 to $2.23, and non-GAAP earnings per share of $3.42 to $3.62. GAAP guidance assumes a tax rate of 22.0 percent and non-GAAP guidance assumes a tax rate of 17.5 percent. Both GAAP and non-GAAP earnings per share assume approximately 239 million shares outstanding.

For the first quarter of 2026, Trimble expects to report revenue between $893 million and $918 million, GAAP earnings per share of $0.32 to $0.36, and non-GAAP earnings per share of $0.69 to $0.74. GAAP guidance assumes a tax rate of 25.0 percent and non-GAAP guidance assumes a tax rate of 17.5 percent. Both GAAP and non-GAAP earnings per share assume approximately 239 million shares outstanding.

A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

Investor Conference Call / Webcast Details

Trimble will hold a conference call on February 10, 2026 at 8:00 a.m. ET to review its fourth quarter and full year 2025 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://www.trimble.com, under the subheading "Events & Presentations." The call will be broadcast live on the web at https://investor.trimble.com. Investors and participants who wish to dial into the call may do so by first registering at https://events.q4inc.com/analyst/345704027?pwd=d%23tLa2%3C%3D. Upon registration, dial-in details will be sent via email to the registrant. A replay will also be available on the web at the address above.

About Trimble

Trimble is a global technology company that connects the physical and digital worlds, transforming the ways work gets done. With relentless innovation in precise positioning, modeling and data analytics, Trimble enables essential industries including construction, geospatial and transportation. Whether it's helping customers build and maintain infrastructure, design and construct buildings, optimize global supply chains or map the world, Trimble is at the forefront, driving productivity and progress. For more information about Trimble (Nasdaq: TRMB), visit: https://www.trimble.com.

Safe Harbor

Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations about our future financial and operational results and expectations regarding the execution, impact and potential of the Connect and Scale strategy. These forward-looking statements are subject to change, and actual results may materially differ due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, effectively integrate new acquisitions or consummate divestitures in a timely manner, or get the benefits we are expecting from our joint ventures and partnerships, including with AGCO and Platform Science. The Company's results could also be negatively impacted due to weakness and deterioration in the U.S. and global macroeconomic outlook, including heightened trade tensions and related imposition of tariffs and export control restrictions between the U.S. and its trading partners; supply chain shortages and disruptions; slowing growth, inflationary pressures and fluctuations in interest rates, which may affect demand for our products and services, increase our costs and adversely affect our revenues and profitability; the pace at which our dealers work through their inventory; changes in our distribution channels, adverse geopolitical tensions and volatility and conflict in the political and economic environment and the direct and indirect impact on our business, fluctuations in foreign currency exchange rates; the pace we transition our business model towards a subscription model, the impact and risks of AI and AI-related developments; the impact of acquisitions or divestitures, and our ability to maintain effective internal controls over financial reporting, including our ability to remediate our material weaknesses in our internal controls over financial reporting. Any failure to achieve predicted results could negatively impact the Company's revenue, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including our quarterly reports on Form 10-Q and our annual report on Form 10-K. Undue reliance should not be placed on any forward-looking statement contained herein. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

FTRMB

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited)
	Fourth Quarter of				Year of
	2025		2024		2025		2024
Revenue:
Product	$              268.3		$              288.9		$           1,135.2		$           1,284.0
Subscription and services	701.5		694.5		2,452.1		2,399.3
Total revenue	969.8		983.4		3,587.3		3,683.3
Cost of sales:
Product	139.5		153.6		576.5		698.3
Subscription and services	115.9		130.0		467.7		495.4
Amortization of purchased intangible assets	16.3		18.6		65.2		93.3
Total cost of sales	271.7		302.2		1,109.4		1,287.0
Gross margin	698.1		681.2		2,477.9		2,396.3
Gross margin (%)	72.0 %		69.3 %		69.1 %		65.1 %
Operating expense:
Research and development	156.0		175.0		630.7		662.3
Sales and marketing	175.6		167.4		646.0		603.8
General and administrative	126.5		137.5		483.1		547.9
Restructuring	(3.4)		1.8		19.3		15.9
Amortization of purchased intangible assets	27.2		26.0		106.8		105.7
Total operating expense	481.9		507.7		1,885.9		1,935.6
Operating income	216.2		173.5		592.0		460.7
Non-operating (expense) income, net:
Divestitures (loss) gain, net	(1.2)		(7.1)		3.0		1,687.9
Interest expense, net	(18.7)		(13.3)		(74.4)		(90.7)
Loss from equity method investments, net	(3.0)		(57.4)		(0.2)		(48.1)
Other (loss) income, net	(8.7)		2.1		(11.0)		(3.9)
Total non-operating (expense) income, net	(31.6)		(75.7)		(82.6)		1,545.2
Income before taxes	184.6		97.8		509.4		2,005.9
Income tax provision	28.0		7.6		85.4		501.5
Net income	$              156.6		$                90.2		$              424.0		$           1,504.4
Earnings per share:
Basic	$                0.66		$                0.37		$                1.77		$                6.13
Diluted	$                0.65		$                0.36		$                1.76		$                6.09
Shares used in calculating earnings per share:
Basic	237.4		245.9		239.2		245.5
Diluted	239.8		248.2		241.5		247.2

 

CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
At the End of Year	2025		2024
Assets
Current assets:
Cash and cash equivalents	$                               253.4		$                               738.8
Accounts receivable, net	856.0		725.8
Inventories	186.3		194.3
Prepaid expenses	102.7		103.3
Other current assets	233.5		196.2
Assets held for sale	—		312.0
Total current assets	1,631.9		2,270.4
Property and equipment, net	182.8		188.4
Goodwill	5,239.7		4,988.4
Other purchased intangible assets, net	924.1		998.1
Deferred income tax assets	260.0		294.4
Equity investments	610.8		361.0
Other non-current assets	462.7		387.6
Total assets	$                            9,312.0		$                            9,488.3
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$                               168.3		$                               161.6
Accrued compensation and benefits	211.7		227.2
Deferred revenue	894.0		800.4
Income taxes payable	17.7		325.0
Other current liabilities	211.7		211.2
Liabilities held for sale	—		62.6
Total current liabilities	1,503.4		1,788.0
Long-term debt	1,392.2		1,390.6
Deferred revenue, non-current	104.7		95.6
Deferred income tax liabilities	190.5		199.9
Other non-current liabilities	285.0		268.9
Total liabilities	3,475.8		3,743.0
Stockholders' equity:
Common stock	0.2		0.2
Additional paid-in-capital	2,437.9		2,369.4
Retained earnings	3,387.6		3,757.6
Accumulated other comprehensive income (loss)	10.5		(381.9)
Total stockholders' equity	5,836.2		5,745.3
Total liabilities and stockholders' equity	$                            9,312.0		$                            9,488.3

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
	Year of
	2025		2024
Cash flow from operating activities:
Net income	$                               424.0		$                            1,504.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	199.9		232.0
Deferred income taxes	2.3		27.0
Stock-based compensation	146.5		158.6
Divestitures gain, net	(3.0)		(1,687.9)
Other, net	88.5		93.9
(Increase) decrease in assets:
Accounts receivable, net	(119.9)		(135.1)
Inventories	4.9		11.0
Other current and non-current assets	(72.9)		(116.3)
Increase (decrease) in liabilities:
Accounts payable	(5.4)		5.7
Accrued compensation and benefits	(22.5)		56.5
Deferred revenue	85.7		168.5
Income taxes payable	(311.2)		265.6
Other current and non-current liabilities	(30.7)		(52.5)
Net cash provided by operating activities	386.2		531.4
Cash flow from investing activities:
Divestiture of businesses, net of cash divested	(4.4)		1,923.4
Acquisitions of businesses, net of cash acquired	(4.4)		(22.0)
Purchases of property and equipment	(25.3)		(33.6)
Other, net	(2.9)		(6.7)
Net cash (used in) provided by investing activities	(37.0)		1,861.1
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings	0.6		(6.5)
Repurchases of common stock	(863.4)		(175.0)
Proceeds from debt and revolving credit lines	577.2		521.2
Payments on debt and revolving credit lines	(577.2)		(2,199.4)
Other, net	(5.6)		(4.5)
Net cash (used in) financing activities	(868.4)		(1,864.2)
Effect of exchange rate changes on cash and cash equivalents	24.8		(19.4)
Net (decrease) increase in cash and cash equivalents	(494.4)		508.9
Cash and cash equivalents - beginning of period (1)	747.8		238.9
Cash and cash equivalents - end of period (1)	$                               253.4		$                               747.8
Supplemental cash flow disclosure:
Cash paid for income taxes, excluding tax for the Ag divestiture	$                               150.1		$                               106.1
Cash tax paid for the Ag divestiture	277.4		122.0
(1) Includes $9.0 million and $9.1 million of cash and cash equivalents classified as held for sale as of January 3, 2025 and      December 29, 2023.

 

REPORTING SEGMENTS (In millions) (Unaudited)
		Reportable Segments
		AECO		Field Systems		T&L
Fourth Quarter of 2025
Segment revenue		$                   454.4		$                   378.9		$                   136.5
Cost of sales		57.8		153.2		34.7
Operating expense		196.4		111.9		70.6
Operating income		$                   200.2		$                   113.8		$                     31.2
Operating income %		44.1 %		30.0 %		22.9 %
Fourth Quarter of 2024
Segment revenue		$                   413.8		$                   362.8		$                   206.8
Cost of sales		57.9		147.2		71.2
Operating expense		187.1		105.4		93.7
Operating income		$                   168.8		$                   110.2		$                     41.9
Operating income %		40.8 %		30.4 %		20.3 %

 

		Reportable Segments
		AECO		Field Systems		T&L
Year of 2025
Segment revenue		$                1,498.6		$                1,539.5		$                   549.2
Cost of sales		235.1		636.7		145.2
Operating expense		751.4		424.7		283.5
Operating income		$                   512.1		$                   478.1		$                   120.5
Operating income %		34.2 %		31.1 %		21.9 %
Year of 2024
Segment revenue		$                1,358.6		$                1,535.9		$                   788.8
Cost of sales		220.4		666.3		280.2
Operating expense		674.6		427.6		353.5
Operating income		$                   463.6		$                   442.0		$                   155.1
Operating income %		34.1 %		28.8 %		19.7 %

 

	GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited)
					Fourth Quarter of						Year of
					2025			2024			2025			2024
					Dollar Amount	% of Revenue		Dollar Amount	% of Revenue		Dollar Amount	% of Revenue		Dollar Amount	% of Revenue
REVENUE:
	GAAP revenue:				$   969.8			$   983.4			$ 3,587.3			$ 3,683.3
GROSS MARGIN:
	GAAP gross margin:				$   698.1	72.0 %		$   681.2	69.3 %		$ 2,477.9	69.1 %		$ 2,396.3	65.1 %
		Amortization of purchased intangible assets	(A)		16.3			18.6			65.2			93.3
		Stock-based compensation / deferred compensation	(C)		3.5			4.7			15.7			17.4
		Restructuring and other costs	(D)		5.4			0.7			6.8			3.6
	Non-GAAP gross margin:				$   723.3	74.6 %		$   705.2	71.7 %		$ 2,565.6	71.5 %		$ 2,510.6	68.2 %
OPERATING EXPENSES:
	GAAP operating expenses:				$   481.9	49.7 %		$   507.7	51.6 %		$ 1,885.9	52.6 %		$ 1,935.6	52.6 %
		Amortization of purchased intangible assets	(A)		(27.2)			(26.0)			(106.8)			(105.7)
		Acquisition / divestiture items	(B)		(6.2)			(6.4)			(19.1)			(81.6)
		Stock-based compensation / deferred compensation	(C)		(33.1)			(43.8)			(135.8)			(146.1)
		Restructuring and other costs	(D)		(5.2)			(9.9)			(46.7)			(28.8)
	Non-GAAP operating expenses:				$   410.2	42.3 %		$   421.6	42.9 %		$ 1,577.5	44.0 %		$ 1,573.4	42.7 %
OPERATING INCOME:
	GAAP operating income:				$   216.2	22.3 %		$   173.5	17.6 %		$   592.0	16.5 %		$   460.7	12.5 %
		Amortization of purchased intangible assets	(A)		43.5			44.6			172.0			199.0
		Acquisition / divestiture items	(B)		6.2			6.4			19.1			81.6
		Stock-based compensation / deferred compensation	(C)		36.6			48.5			151.5			163.5
		Restructuring and other costs	(D)		10.6			10.6			53.5			32.4
	Non-GAAP operating income:				$   313.1	32.3 %		$   283.6	28.8 %		$   988.1	27.5 %		$   937.2	25.4 %
NON-OPERATING EXPENSE, NET:
	GAAP non-operating (expense) income, net:				$   (31.6)			$   (75.7)			$   (82.6)			$ 1,545.2
		Acquisition / divestiture items	(B)		10.1			4.2			8.4			(1,688.5)
		Deferred compensation	(C)		(1.1)			(0.2)			(5.0)			(4.9)
		Restructuring and other costs	(D)		1.0			57.3			6.8			64.1
	Non-GAAP non-operating expense, net:				$   (21.6)			$   (14.4)			$   (72.4)			$   (84.1)
						Tax Rate %			Tax Rate %			Tax Rate %			Tax Rate %
						(F)			(F)			(F)			(F)
INCOME TAX PROVISION:
	GAAP income tax provision:				$     28.0	15.2 %		$       7.6	7.8 %		$     85.4	16.8 %		$   501.5	25.0 %
		Non-GAAP items tax effected	(E)		22.7			40.1			74.0			(352.8)
	Non-GAAP income tax provision:				$     50.7	17.4 %		$     47.7	17.7 %		$   159.4	17.4 %		$   148.7	17.4 %
NET INCOME:
	GAAP net income:				$   156.6			$     90.2			$   424.0			$ 1,504.4
		Amortization of purchased intangible assets	(A)		43.5			44.6			172.0			199.0
		Acquisition / divestiture items	(B)		16.3			10.6			27.5			(1,606.9)
		Stock-based compensation	(C)		35.5			48.3			146.5			158.6
		Restructuring and other costs	(D)		11.6			67.9			60.3			96.5
		Non-GAAP tax adjustments	(E)		(22.7)			(40.1)			(74.0)			352.8
	Non-GAAP net income:				$   240.8			$   221.5			$   756.3			$   704.4
DILUTED NET INCOME PER SHARE:
	GAAP diluted net income per share:				$     0.65			$     0.36			$     1.76			$     6.09
		Amortization of purchased intangible assets	(A)		0.18			0.18			0.71			0.80
		Acquisition / divestiture items	(B)		0.07			0.04			0.11			(6.50)
		Stock-based compensation	(C)		0.15			0.20			0.61			0.64
		Restructuring and other costs	(D)		0.05			0.27			0.25			0.39
		Non-GAAP tax adjustments	(E)		(0.10)			(0.16)			(0.31)			1.43
	Non-GAAP diluted net income per share:				$     1.00			$     0.89			$     3.13			$     2.85
ADJUSTED EBITDA:
	GAAP operating income:				$   216.2	22.3 %		$   173.5	17.6 %		$   592.0	16.5 %		$   460.7	12.5 %
		Amortization of purchased intangible assets	(A)		43.5			44.6			172.0			199.0
		Acquisition / divestiture items	(B)		6.2			6.4			19.1			81.6
		Stock-based compensation / deferred compensation	(C)		36.6			48.5			151.5			163.5
		Restructuring and other costs	(D)		10.6			10.6			53.5			32.4
	Non-GAAP operating income:				313.1	32.3 %		283.6	28.8 %		988.1	27.5 %		937.2	25.4 %
		Depreciation expense and cloud computing amortization			12.2			14.5			48.8			49.3
		(Loss) income from equity method investments, net			(0.5)			—			9.3			13.9
	Adjusted EBITDA:				$   324.8	33.5 %		$   298.1	30.3 %		$ 1,046.2	29.2 %		$ 1,000.4	27.2 %
					Year of
					2025			2024
FREE CASH FLOW:
	Net cash provided by operating activities				$                   386.2			$                   531.4
	Capital expenditures				25.3			33.6
	Free cash flow				$                   360.9			$                   497.8
					First Quarter of 2026			Year 2026
					Low End	High End		Low End	High End
FORECASTED DILUTED NET INCOME PER SHARE:
	Forecasted GAAP diluted net income per share:				$     0.32	$  0.36		$     2.04	$  2.23
		Amortization of purchased intangible assets	(A)		0.18	0.18		0.72	0.72
		Acquisition / divestiture items	(B)		0.02	0.02		0.05	0.05
		Stock-based compensation	(C)		0.18	0.18		0.66	0.66
		Restructuring and other costs	(D)		0.04	0.04		0.11	0.11
		Non-GAAP tax adjustments	(E)		(0.05)	(0.04)		(0.16)	(0.15)
	Forecasted non-GAAP diluted net income per share:				$     0.69	$  0.74		$     3.42	$  3.62

FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION

This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We believe non-GAAP financial measures provide useful information to investors and others in understanding our "core operating performance", which excludes (i) the effect of non-cash items and certain variable charges not expected to recur and (ii) transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. Lastly, we believe that our core operating performance offers a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors.

The non-GAAP definitions and explanations to the adjustments to comparable GAAP measures are included below:

Non-GAAP Definitions

Non-GAAP gross margin

We define Non-GAAP gross margin as GAAP gross margin, excluding the effects of amortization of purchased intangible assets, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions, and manufacturing costs influence our business.

Non-GAAP operating expenses

We define Non-GAAP operating expenses as GAAP operating expenses, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue.

Non-GAAP operating income

We define Non-GAAP operating income as GAAP operating income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, deferred compensation, and restructuring and other costs. We believe our investors benefit by understanding our non-GAAP operating income trends, which are driven by revenue, gross margin, and spending.

Non-GAAP non-operating expense, net

We define Non-GAAP non-operating expense, net as GAAP non-operating (expense) income, net, excluding acquisition/divestiture items, deferred compensation, and restructuring and other costs. We believe this measure helps investors evaluate our non-operating expense trends.

Non-GAAP income tax provision

We define non-GAAP income tax provision as the GAAP income tax provision adjusted for the tax effects of the non-GAAP pre-tax adjustments (A) through (D), excluding certain tax charges and benefits such as net deferred tax impacts resulting from tax amortization related to a non-U.S. intercompany transfer of intellectual property and certain acquisitions, deferred tax impacts from global intangible low-taxed income, significant reserve releases upon the expiration of statute of limitations and audit closures, and tax law changes. We believe this measure helps investors because it provides for consistent treatment of excluded items in our non-GAAP presentation.

Non-GAAP net income

We define Non-GAAP net income as GAAP net income, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. This measure provides a supplemental view of net income trends, which are driven by non-GAAP income before taxes and our non-GAAP tax rate.

Non-GAAP diluted net income per share

We define Non-GAAP diluted net income per share as GAAP diluted net income per share, excluding the effects of amortization of purchased intangible assets, acquisition/divestiture items, stock-based compensation, restructuring and other costs, and non-GAAP tax adjustments. We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the Company.

Adjusted EBITDA

We define Adjusted EBITDA as non-GAAP operating income plus depreciation expense, cloud computing amortization, and income from equity method investments, net, excluding our proportionate share of items such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs. Other companies may define Adjusted EBITDA differently. Adjusted EBITDA is a performance measure that we believe offers a useful view of the overall operations of our business because it facilitates operating performance comparisons by removing potential differences caused by variations unrelated to operating performance, such as capital structures (interest expense), income taxes, depreciation, amortization of purchased intangibles and cloud computing costs, and income from equity method investments, net.

Free Cash Flow

We define free cash flow as cash flow from operating activities minus capital expenditures. We believe this measure is important to investors evaluating our generation of cash flow.

Explanations of Non-GAAP adjustments

(A)	Amortization of purchased intangible assets. Non-GAAP gross margin and operating expenses exclude the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed.
(B)	Acquisition / divestiture items. Non-GAAP gross margin and operating expenses exclude costs consisting of external and incremental costs resulting directly from acquisitions, divestitures, and strategic investment activities such as legal, due diligence, integration, and other costs, including the acceleration of acquisition stock awards and adjustments to the fair value of earn-out liabilities. Non-GAAP non-operating expense, net, excludes one-time acquisition/divestiture charges, including foreign currency exchange rate gains/losses related to an acquisition, divestiture gains/losses, and strategic investment gains/losses. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance.
(C)	Stock-based compensation / deferred compensation. Non-GAAP gross margin and operating expenses exclude stock-based compensation and income or expense associated with movement in our non-qualified deferred compensation plan liabilities. Changes in non-qualified deferred compensation plan assets, included in non-operating expense, net, offset the income or expense in the plan liabilities.
(D)	Restructuring and other costs. Non-GAAP gross margin and operating expenses exclude restructuring costs composed of termination benefits related to reductions in employee headcount, closure or exit of facilities, and cancellation of certain contracts, and other costs composed of one-time incremental expenses resulting from the re-audit and related remediation of control deficiencies. Non-GAAP non-operating expense net, excludes our proportionate share of items recorded in income from equity method investment items, such as goodwill impairment, amortization of purchased intangibles, stock-based compensation, and restructuring costs.
(E)	Non-GAAP items tax effected. This amount represents the income tax effect of non-GAAP pre-tax adjustments, excluding certain tax charges and benefits, which reconcile the GAAP income tax provision to the non-GAAP income tax provision.
(F)	Tax rate percentages. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes.

OTHER KEY METRICS

Annualized Recurring Revenue 

In addition to providing non-GAAP financial measures, Trimble provides an ARR performance measure in order to provide investors with a supplementary indicator of the value of the Company's current recurring revenue contracts. ARR represents the estimated annualized value of recurring revenue. ARR is calculated by taking our subscription and maintenance and support revenue for the current quarter and adding the portion of the contract value of all our term licenses attributable to the current quarter, then dividing that sum by the number of days in the quarter and then multiplying that quotient by 365. ARR should be viewed independently of revenue and deferred revenue as it is a performance measure and is not intended to be combined with or to replace either of those items.

Organic Annualized Recurring Revenue

Organic annualized recurring revenue refers to annualized recurring revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.

Organic Revenue

Organic revenue refers to revenue excluding the impacts of (i) foreign currency translation, and (ii) acquisitions and divestitures that closed in the prior 12 months.

 

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SOURCE Trimble

FAQ

What were Trimble's key Q4 2025 financial results (TRMB)?

Trimble reported Q4 2025 revenue of $969.8M and GAAP net income of $156.6M. According to the company, Q4 non-GAAP net income was $240.8M with adjusted EBITDA of $324.8M, and diluted non-GAAP EPS was $1.00.

How large is Trimble's annualized recurring revenue (ARR) reported in 2025?

Trimble reported record ARR of $2.39 billion for 2025, up 6% year-over-year. According to the company, ARR rose 14% on an organic basis, reflecting subscription and recurring-revenue growth tied to its Connect & Scale strategy.

How much stock did Trimble repurchase in fiscal 2025 and Q4 (TRMB)?

Trimble repurchased approximately 12.2 million shares for $875.4M in fiscal 2025 and about 1.9 million shares for $148.1M in Q4. According to the company, buybacks were executed during FY2025 as part of capital allocation.

What margins did Trimble report for FY2025 and Q4 2025 (TRMB)?

Trimble reported Q4 GAAP operating margin of 22.3% and non-GAAP operating margin of 32.3%. According to the company, fiscal 2025 GAAP operating margin was 16.5% and non-GAAP operating margin was 27.5%, both at record levels.

Did Trimble deliver revenue growth in 2025 and what drove it (TRMB)?

Fiscal 2025 revenue was $3,587.3M, down 3% year-over-year but up 6% on an organic basis. According to the company, organic growth and recurring revenue gains drove improved underlying performance despite a modest GAAP decline.