Trimble Q3 2026 net income falls to $59.1M
Recurring revenue and operating cash flow increased year over year, while GAAP earnings declined and full-year guidance includes a GAAP loss per share.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Trimble Inc. (TRMB) reported third-quarter 2026 revenue of $966.8 million, up 7 percent year over year, and annualized recurring revenue of $2.56 billion, up 11 percent. GAAP net income was $59.1 million, compared with $111.5 million a year earlier, while GAAP diluted earnings per share was $0.25 versus $0.46. Non-GAAP diluted earnings per share was $0.86, and adjusted EBITDA was $278.5 million. Gross margin was 68.2 percent, versus 68.9 percent.
For the first three quarters, operating cash flow was $664.7 million, compared with $225.9 million; results included a $562.0 million goodwill impairment charge. During the quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million. Full-year 2026 guidance calls for revenue of $3,910 million to $3,940 million, GAAP loss per share of $0.55 to $0.49, and non-GAAP earnings per share of $3.63 to $3.69; fourth-quarter revenue guidance is $1,031 million to $1,061 million.
Trimble’s risk disclosures refer to material weaknesses in internal controls over financial reporting and the company’s ability to remediate them.
3 points · 0 major2 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue reached $966.8 million, up 7 percent year over year.
- Moderate pointAnnualized recurring revenue was $2.56 billion, up 11 percent year over year.
- Moderate pointFirst-three-quarter operating cash flow was $664.7 million, compared with $225.9 million.
Negative
- Major pointGoodwill impairment for the first three quarters was $562.0 million. 3.7% of market cap
- Major pointRisk disclosures refer to material weaknesses in internal controls over financial reporting.
- Minor pointGAAP net income was $59.1 million, compared with $111.5 million a year earlier.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $966.8 million
Annualized recurring revenue: $2.56 billion
GAAP net income: $59.1 million
+5 more
8 metrics
Revenue
$966.8 million
Third quarter 2026; up 7 percent year over year from $901.2 million.
Annualized recurring revenue
$2.56 billion
Third quarter 2026; up 11 percent year over year.
GAAP net income
$59.1 million
Third quarter 2026; compared with $111.5 million in third quarter 2025.
GAAP diluted earnings per share
$0.25 per share
Third quarter 2026; compared with $0.46 in third quarter 2025.
Non-GAAP diluted earnings per share
$0.86 per share
Third quarter 2026; compared with $0.81 in third quarter 2025.
Operating cash flow
$664.7 million
First three quarters of 2026; compared with $225.9 million in the first three quarters of 2025.
Common stock repurchases
Approximately 4.0 million shares for $231.7 million
Third quarter 2026.
Full-year revenue guidance
$3,910 million to $3,940 million
Full-year 2026.
Key Terms
Annualized recurring revenue, Adjusted EBITDA, Free cash flow, Organic revenue
4 terms
Annualized recurring revenue financial
"ARR represents the estimated annualized value of recurring revenue."
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.
Adjusted EBITDA financial
"Adjusted EBITDA as non-GAAP operating income plus depreciation expense"
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.
Free cash flow financial
"free cash flow as cash flow from operating activities minus capital expenditures."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Organic revenue financial
"Organic revenue refers to revenue excluding the impacts"
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
Earnings Snapshot
Revenue: $966.8 million · Guidance included
Third quarter of 2026
Revenue
$966.8 million
Up 7 percent year over year from $901.2 million
Annualized recurring revenue
$2.56 billion
Up 11 percent year over year
GAAP net income
$59.1 million
Compared with $111.5 million in third quarter 2025
Non-GAAP net income
$200.5 million
Compared with $194.7 million in third quarter 2025
GAAP diluted earnings per share
$0.25 per share
Compared with $0.46 in third quarter 2025
Non-GAAP diluted earnings per share
$0.86 per share
Compared with $0.81 in third quarter 2025
Adjusted EBITDA
$278.5 million
Compared with $269.4 million in third quarter 2025
Guidance
Full-year 2026 revenue of $3,910 million to $3,940 million, GAAP loss per share of $0.55 to $0.49, and non-GAAP earnings per share of $3.63 to $3.69. Fourth-quarter 2026 revenue of $1,031 million to $1,061 million, GAAP earnings per share of $0.83 to $0.89, and non-GAAP earnings per share of $1.13 to $1.19.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were TRMB’s third-quarter 2026 results?
TRMB reported third-quarter revenue of $966.8 million, up 7 percent year over year, and GAAP net income of $59.1 million. GAAP diluted earnings per share was $0.25. Annualized recurring revenue was $2.56 billion, up 11 percent, and non-GAAP diluted earnings per share was $0.86.
What is TRMB’s 2026 financial guidance?
Trimble expects full-year 2026 revenue of $3,910 million to $3,940 million, GAAP loss per share of $0.55 to $0.49, and non-GAAP earnings per share of $3.63 to $3.69. For the fourth quarter, it expects revenue of $1,031 million to $1,061 million, GAAP earnings per share of $0.83 to $0.89, and non-GAAP earnings per share of $1.13 to $1.19.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer I.D. No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (720 ) 887-6100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026 , Trimble Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended October 2, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this report, including the exhibit, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor be incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release dated November 4, 2026 related to the Company's financial results for the quarter ended October 2, 2026 | |||||||
| 104 | The cover page from this Report on Form 8-K, formatted in Inline XBRL | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TRIMBLE INC. | |||||||||||
| a Delaware corporation | |||||||||||
Dated: | By: | /s/ Phillip Sawarynski | |||||||||
Phillip Sawarynski | |||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 99.1
Trimble Announces Third Quarter 2026 Results and Updates Full Year Guidance
•Executing Connect & Scale strategy to compound value across the Trimble-led ecosystem
•Third quarter results exceeded expectations
•Record annualized recurring revenue
WESTMINSTER, Colo., Nov 4, 2026 - Trimble Inc. (Nasdaq: TRMB) today announced financial results for the third quarter of 2026.
Third Quarter 2026 Financial Highlights
•Revenue of $966.8 million, up 7 percent on a year-over-year basis, up 7 percent on an organic basis
•Annualized recurring revenue ("ARR") was $2.56 billion, up 11 percent year-over-year, up 10 percent on an organic basis
•GAAP operating income was $142.0 million, 14.7 percent of revenue, and non-GAAP operating income was $262.6 million, 27.2 percent of revenue
•GAAP net income was $59.1 million and non-GAAP net income was $200.5 million
•Diluted earnings per share was $0.25 on a GAAP basis and $0.86 on a non-GAAP basis
•Adjusted EBITDA was $278.5 million, 28.8 percent of revenue
•During the third quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million
Executive Quote
"Our third quarter results surpassed expectations on both revenue and earnings per share, while delivering record annualized recurring revenue of $2.56 billion,” said Rob Painter, President and CEO of Trimble. "Our full year 2026 guidance reflects solid execution against our Connect & Scale strategy, which continues to leverage our unique presence across the physical and digital worlds with our unmatched breadth and depth of connected industry data."
Forward-Looking Guidance
For the full-year 2026, Trimble expects to report revenue between $3,910 million and $3,940 million, GAAP loss per share of $0.55 to $0.49, and non-GAAP earnings per share of $3.63 to $3.69. GAAP guidance assumes a tax rate range between 618.3 percent and 372.6 percent and non-GAAP guidance assumes a tax rate of 17.2 percent. GAAP loss and non-GAAP earnings per share assume approximately 232 million and 234 million shares outstanding, respectively.
For the fourth quarter of 2026, Trimble expects to report revenue between $1,031 million and $1,061 million, GAAP earnings per share of $0.83 to $0.89, and non-GAAP earnings per share of $1.13 to $1.19. GAAP guidance assumes a tax rate of approximately 11.4 percent and non-GAAP guidance assumes a tax rate of 17.1 percent. Both GAAP and non-GAAP earnings per share assume approximately 231 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 November 4, 2026 at 8:00 a.m. ET to review its third quarter of 2026 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, https://investor.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/824595803?pwd=vT4bMLRX. 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. 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. The Company's results could also be negatively impacted due to the general global macroeconomic outlook, including evolving trade policies, associated supply chain disruptions and shifts in demand, 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 the ongoing impact of volatility and conflict in the political and economic environment, including the ongoing Middle East conflict, and the direct and indirect impact on our business; fluctuations in foreign currency exchange rates; the pace that 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; the potential impact of any stock repurchases under our stock repurchase program; 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 U.S. Securities and Exchange Commission, 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 OPERATIONS
(In millions, except per share data)
(Unaudited)
| Third Quarter of | First Three Quarters of | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Product | $ | 324.3 | $ | 302.5 | $ | 966.9 | $ | 866.9 | |||||||||||||||
| Subscription and services | 642.5 | 598.7 | 1,911.8 | 1,750.6 | |||||||||||||||||||
| Total revenue | 966.8 | 901.2 | 2,878.7 | 2,617.5 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Product | 172.4 | 148.9 | 490.7 | 437.0 | |||||||||||||||||||
| Subscription and services | 118.5 | 114.8 | 357.9 | 351.8 | |||||||||||||||||||
| Amortization of purchased intangible assets | 16.8 | 16.4 | 49.8 | 48.9 | |||||||||||||||||||
| Total cost of sales | 307.7 | 280.1 | 898.4 | 837.7 | |||||||||||||||||||
| Gross margin | 659.1 | 621.1 | 1,980.3 | 1,779.8 | |||||||||||||||||||
| Gross margin (%) | 68.2 | % | 68.9 | % | 68.8 | % | 68.0 | % | |||||||||||||||
| Operating expense: | |||||||||||||||||||||||
| Research and development | 162.9 | 152.9 | 509.5 | 474.7 | |||||||||||||||||||
| Sales and marketing | 177.7 | 158.8 | 530.1 | 470.4 | |||||||||||||||||||
| General and administrative | 124.7 | 117.5 | 401.1 | 356.6 | |||||||||||||||||||
| Restructuring | 24.9 | 14.2 | 40.4 | 22.7 | |||||||||||||||||||
| Amortization of purchased intangible assets | 26.9 | 27.2 | 81.2 | 79.6 | |||||||||||||||||||
| Total operating expense | 517.1 | 470.6 | 1,562.3 | 1,404.0 | |||||||||||||||||||
| Operating income | 142.0 | 150.5 | 418.0 | 375.8 | |||||||||||||||||||
| Non-operating (expense) income, net: | |||||||||||||||||||||||
Goodwill impairment | — | — | (562.0) | — | |||||||||||||||||||
| Interest expense, net | (20.4) | (20.7) | (60.8) | (55.7) | |||||||||||||||||||
| Income (loss) from equity method investments, net | 0.8 | (0.5) | 4.2 | 2.8 | |||||||||||||||||||
| Other (loss) income, net | (1.1) | (4.2) | 8.4 | 1.9 | |||||||||||||||||||
Total non-operating expense, net | (20.7) | (25.4) | (610.2) | (51.0) | |||||||||||||||||||
| Income (loss) before taxes | 121.3 | 125.1 | (192.2) | 324.8 | |||||||||||||||||||
Income tax provision | 62.2 | 13.6 | 121.5 | 57.4 | |||||||||||||||||||
| Net income (loss) | $ | 59.1 | $ | 111.5 | $ | (313.7) | $ | 267.4 | |||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||
| Basic | $ | 0.25 | $ | 0.47 | $ | (1.34) | $ | 1.11 | |||||||||||||||
| Diluted | $ | 0.25 | $ | 0.46 | $ | (1.34) | $ | 1.10 | |||||||||||||||
| Shares used in calculating earnings (loss) per share: | |||||||||||||||||||||||
| Basic | 232.4 | 238.2 | 233.3 | 239.9 | |||||||||||||||||||
| Diluted | 233.2 | 240.4 | 233.3 | 242.0 | |||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
As of | |||||||||||
| Third Quarter of | Year End | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 214.5 | $ | 253.4 | |||||||
| Accounts receivable, net | 610.9 | 856.0 | |||||||||
| Inventories | 183.4 | 186.3 | |||||||||
| Prepaid expenses | 110.7 | 102.7 | |||||||||
| Other current assets | 236.3 | 233.5 | |||||||||
| Total current assets | 1,355.8 | 1,631.9 | |||||||||
| Property and equipment, net | 182.5 | 182.8 | |||||||||
| Goodwill | 4,822.0 | 5,239.7 | |||||||||
| Other purchased intangible assets, net | 808.1 | 924.1 | |||||||||
| Deferred income tax assets | 290.6 | 260.0 | |||||||||
| Equity investments | 608.4 | 610.8 | |||||||||
| Other non-current assets | 467.7 | 462.7 | |||||||||
| Total assets | $ | 8,535.1 | $ | 9,312.0 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt | $ | 90.2 | $ | — | |||||||
| Accounts payable | 219.8 | 168.3 | |||||||||
| Accrued compensation and benefits | 141.8 | 211.7 | |||||||||
| Deferred revenue | 797.8 | 894.0 | |||||||||
| Income taxes payable | 8.7 | 17.7 | |||||||||
| Other current liabilities | 202.2 | 211.7 | |||||||||
| Total current liabilities | 1,460.5 | 1,503.4 | |||||||||
| Long-term debt | 1,443.3 | 1,392.2 | |||||||||
| Deferred revenue, non-current | 122.3 | 104.7 | |||||||||
| Deferred income tax liabilities | 141.7 | 190.5 | |||||||||
| Other non-current liabilities | 391.5 | 285.0 | |||||||||
| Total liabilities | 3,559.3 | 3,475.8 | |||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 0.2 | 0.2 | |||||||||
| Additional paid-in-capital | 2,497.4 | 2,437.9 | |||||||||
| Retained earnings | 2,572.2 | 3,387.6 | |||||||||
| Accumulated other comprehensive (loss) income | (94.0) | 10.5 | |||||||||
| Total stockholders' equity | 4,975.8 | 5,836.2 | |||||||||
| Total liabilities and stockholders' equity | $ | 8,535.1 | $ | 9,312.0 | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| First Three Quarters of | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flow from operating activities: | |||||||||||
| Net (loss) income | $ | (313.7) | $ | 267.4 | |||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 151.7 | 149.3 | |||||||||
Goodwill impairment | 562.0 | — | |||||||||
| Deferred income taxes | (71.1) | (24.3) | |||||||||
| Stock-based compensation | 118.3 | 111.1 | |||||||||
| Other, net | 12.8 | 53.5 | |||||||||
| (Increase) decrease in assets: | |||||||||||
| Accounts receivable, net | 235.9 | 195.0 | |||||||||
| Inventories | 7.0 | 17.3 | |||||||||
| Other current and non-current assets | (30.2) | (31.1) | |||||||||
| Increase (decrease) in liabilities: | |||||||||||
| Accounts payable | 51.7 | (13.6) | |||||||||
| Accrued compensation and benefits | (67.8) | (71.8) | |||||||||
| Deferred revenue | (82.3) | (71.1) | |||||||||
| Income taxes payable | (9.0) | (311.5) | |||||||||
| Other current and non-current liabilities | 99.4 | (44.3) | |||||||||
| Net cash provided by operating activities | 664.7 | 225.9 | |||||||||
| Cash flow from investing activities: | |||||||||||
| Divestitures of businesses, net of cash divested | (2.0) | (6.5) | |||||||||
| Acquisitions of businesses, net of cash acquired | (236.5) | (4.4) | |||||||||
| Purchases of property and equipment | (21.1) | (19.7) | |||||||||
| Other, net | (0.9) | (5.5) | |||||||||
| Net cash used in investing activities | (260.5) | (36.1) | |||||||||
| Cash flow from financing activities: | |||||||||||
| Issuance of common stock, net of tax withholdings | (15.7) | 1.1 | |||||||||
| Repurchases of common stock | (552.9) | (727.4) | |||||||||
| Proceeds from debt and revolving credit lines | 1,158.7 | 577.2 | |||||||||
| Payments on debt and revolving credit lines | (1,018.5) | (577.2) | |||||||||
| Other, net | (7.9) | (3.0) | |||||||||
| Net cash used in financing activities | (436.3) | (729.3) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (6.8) | 24.4 | |||||||||
| Net decrease in cash and cash equivalents | (38.9) | (515.1) | |||||||||
Cash and cash equivalents - beginning of period (1) | 253.4 | 747.8 | |||||||||
Cash and cash equivalents - end of period | $ | 214.5 | $ | 232.7 | |||||||
(1) Includes $9.0 million of cash and cash equivalents classified as held for sale as of January 3, 2025. | |||||||||||
REPORTING SEGMENTS
(In millions)
(Unaudited)
Reportable Segments | ||||||||||||||||||||
| AECO | Field Systems | T&L | ||||||||||||||||||
| Third Quarter of 2026 | ||||||||||||||||||||
| Segment revenue | $ | 395.0 | $ | 435.8 | $ | 136.0 | ||||||||||||||
| Cost of sales | 63.9 | 189.6 | 31.0 | |||||||||||||||||
Operating expense | 198.9 | 117.5 | 69.3 | |||||||||||||||||
| Operating income | $ | 132.2 | $ | 128.7 | $ | 35.7 | ||||||||||||||
| Operating income % | 33.5 | % | 29.5 | % | 26.3 | % | ||||||||||||||
| Third Quarter of 2025 | ||||||||||||||||||||
| Segment revenue | $ | 358.5 | $ | 408.7 | $ | 134.0 | ||||||||||||||
| Cost of sales | 58.7 | 167.4 | 32.3 | |||||||||||||||||
| Operating expense | 185.9 | 104.6 | 67.1 | |||||||||||||||||
| Operating income | $ | 113.9 | $ | 136.7 | $ | 34.6 | ||||||||||||||
| Operating income % | 31.8 | % | 33.4 | % | 25.8 | % | ||||||||||||||
| Reportable Segments | ||||||||||||||||||||
| AECO | Field Systems | T&L | ||||||||||||||||||
| First Three Quarters of 2026 | ||||||||||||||||||||
| Segment revenue | $ | 1,174.6 | $ | 1,287.5 | $ | 416.6 | ||||||||||||||
| Cost of sales | 187.8 | 541.9 | 99.5 | |||||||||||||||||
| Operating expense | 612.5 | 353.1 | 213.7 | |||||||||||||||||
| Operating income | $ | 374.3 | $ | 392.5 | $ | 103.4 | ||||||||||||||
| Operating income % | 31.9 | % | 30.5 | % | 24.8 | % | ||||||||||||||
| First Three Quarters of 2025 | ||||||||||||||||||||
| Segment revenue | $ | 1,044.2 | $ | 1,160.6 | $ | 412.7 | ||||||||||||||
| Cost of sales | 177.3 | 483.5 | 110.5 | |||||||||||||||||
| Operating expense | 555.0 | 312.8 | 212.9 | |||||||||||||||||
| Operating income | $ | 311.9 | $ | 364.3 | $ | 89.3 | ||||||||||||||
| Operating income % | 29.9 | % | 31.4 | % | 21.6 | % | ||||||||||||||
GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)
| Third Quarter of | First Three Quarters of | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Dollar Amount | % of Revenue | Dollar Amount | % of Revenue | Dollar Amount | % of Revenue | Dollar Amount | % of Revenue | ||||||||||||||||||||||||||||||||||||||||
| REVENUE: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP revenue: | $ | 966.8 | $ | 901.2 | $ | 2,878.7 | $ | 2,617.5 | |||||||||||||||||||||||||||||||||||||||
| GROSS MARGIN: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP gross margin: | $ | 659.1 | 68.2 | % | $ | 621.1 | 68.9 | % | $ | 1,980.3 | 68.8 | % | $ | 1,779.8 | 68.0 | % | |||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 16.8 | 16.4 | 49.8 | 48.9 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation / deferred compensation | (C) | 3.5 | 3.7 | 11.5 | 12.2 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 1.9 | 0.8 | 4.7 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP gross margin: | $ | 681.3 | 70.5 | % | $ | 642.0 | 71.2 | % | $ | 2,046.3 | 71.1 | % | $ | 1,842.3 | 70.4 | % | |||||||||||||||||||||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP operating expenses: | $ | 517.1 | 53.5 | % | $ | 470.6 | 52.2 | % | $ | 1,562.3 | 54.3 | % | $ | 1,404.0 | 53.6 | % | |||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | (26.9) | (27.2) | (81.2) | (79.6) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | (13.1) | (1.3) | (42.9) | (12.9) | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation / deferred compensation | (C) | (29.6) | (32.9) | (109.6) | (102.7) | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | (28.8) | (21.4) | (48.7) | (41.5) | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating expenses: | $ | 418.7 | 43.3 | % | $ | 387.8 | 43.0 | % | $ | 1,279.9 | 44.5 | % | $ | 1,167.3 | 44.6 | % | |||||||||||||||||||||||||||||||
| OPERATING INCOME: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP operating income: | $ | 142.0 | 14.7 | % | $ | 150.5 | 16.7 | % | $ | 418.0 | 14.5 | % | $ | 375.8 | 14.4 | % | |||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 43.7 | 43.6 | 131.0 | 128.5 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | 13.1 | 1.3 | 42.9 | 12.9 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation / deferred compensation | (C) | 33.1 | 36.6 | 121.1 | 114.9 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 30.7 | 22.2 | 53.4 | 42.9 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating income: | $ | 262.6 | 27.2 | % | $ | 254.2 | 28.2 | % | $ | 766.4 | 26.6 | % | $ | 675.0 | 25.8 | % | |||||||||||||||||||||||||||||||
| NON-OPERATING EXPENSE, NET: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP non-operating expense, net: | $ | (20.7) | $ | (25.4) | $ | (610.2) | $ | (51.0) | |||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | (2.9) | 6.2 | (12.5) | (1.7) | ||||||||||||||||||||||||||||||||||||||||||
| Deferred compensation | (C) | 0.1 | (1.9) | (2.8) | (3.9) | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 2.7 | 2.9 | 7.4 | 5.8 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | (E) | — | — | 562.0 | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP non-operating expense, net: | $ | (20.8) | $ | (18.2) | $ | (56.1) | $ | (50.8) | |||||||||||||||||||||||||||||||||||||||
Tax Rate % | Tax Rate % | Tax Rate % | Tax Rate % | ||||||||||||||||||||||||||||||||||||||||||||
(G) | (G) | (G) | (G) | ||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAX PROVISION: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP income tax provision: | $ | 62.2 | 51.3 | % | $ | 13.6 | 10.9 | % | $ | 121.5 | (63.2) | % | $ | 57.4 | 17.7 | % | |||||||||||||||||||||||||||||||
| Non-GAAP items tax effected | (F) | (20.9) | 27.7 | 1.1 | 51.3 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP income tax provision: | $ | 41.3 | 17.1 | % | $ | 41.3 | 17.5 | % | $ | 122.6 | 17.3 | % | $ | 108.7 | 17.4 | % | |||||||||||||||||||||||||||||||
| NET INCOME (LOSS): | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP net income (loss): | $ | 59.1 | $ | 111.5 | $ | (313.7) | $ | 267.4 | |||||||||||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 43.7 | 43.6 | 131.0 | 128.5 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | 10.2 | 7.5 | 30.4 | 11.2 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (C) | 33.2 | 34.7 | 118.3 | 111.0 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 33.4 | 25.1 | 60.8 | 48.7 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | (E) | — | — | 562.0 | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP tax adjustments | (F) | 20.9 | (27.7) | (1.1) | (51.3) | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income: | $ | 200.5 | $ | 194.7 | $ | 587.7 | $ | 515.5 | |||||||||||||||||||||||||||||||||||||||
| DILUTED NET INCOME (LOSS) PER SHARE: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP diluted net income (loss) per share: | $ | 0.25 | $ | 0.46 | $ | (1.34) | $ | 1.10 | |||||||||||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 0.19 | 0.18 | 0.56 | 0.53 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | 0.04 | 0.03 | 0.13 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (C) | 0.15 | 0.15 | 0.50 | 0.46 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 0.14 | 0.10 | 0.26 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | (E) | — | — | 2.40 | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP tax adjustments | (F) | 0.09 | (0.11) | — | (0.21) | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP diluted net income per share: | $ | 0.86 | $ | 0.81 | $ | 2.51 | $ | 2.13 | |||||||||||||||||||||||||||||||||||||||
| ADJUSTED EBITDA: | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP operating income: | $ | 142.0 | 14.7 | % | $ | 150.5 | 16.7 | % | $ | 418.0 | 14.5 | % | $ | 375.8 | 14.4 | % | |||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 43.7 | 43.6 | 131.0 | 128.5 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | 13.1 | 1.3 | 42.9 | 12.9 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation / deferred compensation | (C) | 33.1 | 36.6 | 121.1 | 114.9 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 30.7 | 22.2 | 53.4 | 42.9 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating income: | 262.6 | 27.2 | % | 254.2 | 28.2 | % | 766.4 | 26.6 | % | 675.0 | 25.8 | % | |||||||||||||||||||||||||||||||||||
| Depreciation expense and cloud computing amortization | 12.3 | 12.3 | 36.1 | 36.6 | |||||||||||||||||||||||||||||||||||||||||||
Income from equity method investments, net | 3.6 | 2.9 | 11.7 | 9.8 | |||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA: | $ | 278.5 | 28.8 | % | $ | 269.4 | 29.9 | % | $ | 814.2 | 28.3 | % | $ | 721.4 | 27.6 | % | |||||||||||||||||||||||||||||||
| First Three Quarters of | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
FREE CASH FLOW: | |||||||||||||||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 664.7 | $ | 225.9 | |||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | 21.1 | 19.7 | |||||||||||||||||||||||||||||||||||||||||||||
Free cash flow | $ | 643.6 | $ | 206.2 | |||||||||||||||||||||||||||||||||||||||||||
| Fourth Quarter of 2026 | Year 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Low End | High End | Low End | High End | ||||||||||||||||||||||||||||||||||||||||||||
| FORECASTED DILUTED NET INCOME (LOSS) PER SHARE: | |||||||||||||||||||||||||||||||||||||||||||||||
Forecasted GAAP diluted net income (loss) per share: | $ | 0.83 | $ | 0.89 | $ | (0.55) | $ | (0.49) | |||||||||||||||||||||||||||||||||||||||
| Amortization of purchased intangible assets | (A) | 0.18 | 0.18 | 0.75 | 0.75 | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition / divestiture items | (B) | 0.03 | 0.03 | 0.16 | 0.16 | ||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (C) | 0.15 | 0.15 | 0.66 | 0.66 | ||||||||||||||||||||||||||||||||||||||||||
| Restructuring and other costs | (D) | 0.06 | 0.06 | 0.32 | 0.32 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill impairment | (E) | — | — | 2.42 | 2.42 | ||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP tax adjustments | (F) | (0.12) | (0.12) | (0.13) | (0.13) | ||||||||||||||||||||||||||||||||||||||||||
| Forecasted non-GAAP diluted net income per share: | $ | 1.13 | $ | 1.19 | $ | 3.63 | $ | 3.69 | |||||||||||||||||||||||||||||||||||||||
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, net, excluding goodwill impairment, 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 (E), 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 net controlled foreign corporation tested income (“net CFC tested income”, formerly referred to as global intangible low-taxed income or “GILTI”), 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 (loss), excluding the effects of goodwill impairment, 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 (loss) per share, excluding the effects of goodwill impairment, 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, which excludes our proportionate share of items such as 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 and other cost-saving initiatives, costs related to executive severance agreements, 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)Goodwill Impairment. Non-GAAP non-operating expense, net excludes the goodwill impairment charge related to our T&L segment. The impairment was triggered by a sustained decline in market capitalization and stock price reflecting heightened macroeconomic uncertainty and lower market multiples for software businesses.
(F)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.
(G)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.