Third Quarter 2026
Filed Nov 4, 2026Trimble Announces Third Quarter 2026 Results and Updates Full Year Guidance
Third-quarter revenue was $966.8 million, up 7 percent year-over-year, ARR reached a record $2.56 billion, and non-GAAP diluted net income per share was $0.86. GAAP operating income and GAAP net income were below the prior-year quarter, while full-year GAAP guidance calls for a loss reflecting the goodwill impairment recorded in the first three quarters.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 total revenueGAAP | $966.8M | – | 7 percent |
| Third Quarter 2026 organic revenue growthother | 7 percent | – | 7 percent on an organic basis |
| Third Quarter 2026 product revenueGAAP | $324.3M | – | – |
| Third Quarter 2026 subscription and services revenueGAAP | $642.5M | – | – |
| Third Quarter 2026 annualized recurring revenueother | $2.56B | – | 11 percent year-over-year |
| Third Quarter 2026 organic annualized recurring revenue growthother | 10 percent | – | 10 percent on an organic basis |
| Third Quarter 2026 gross marginGAAP | $659.1 million, 68.2 % | – | – |
| Third Quarter 2026 gross marginnon-GAAP | $681.3 million, 70.5 % | – | – |
| Third Quarter 2026 operating expensesGAAP | $517.1 million, 53.5 % | – | – |
| Third Quarter 2026 operating expensesnon-GAAP | $418.7 million, 43.3 % | – | – |
| Third Quarter 2026 operating incomeGAAP | $142.0 million, 14.7 % | – | – |
| Third Quarter 2026 operating incomenon-GAAP | $262.6 million, 27.2 % | – | – |
| Third Quarter 2026 net incomeGAAP | $59.1M | – | – |
| Third Quarter 2026 net incomenon-GAAP | $200.5M | – | – |
| Third Quarter 2026 diluted earnings per shareGAAP | $0.25 | – | – |
| Third Quarter 2026 diluted earnings per sharenon-GAAP | $0.86 | – | – |
| Third Quarter 2026 adjusted EBITDAnon-GAAP | $278.5 million, 28.8 % | – | – |
| First Three Quarters of 2026 total revenueGAAP | $2.88B | – | – |
| First Three Quarters of 2026 gross marginGAAP | $1,980.3 million, 68.8 % | – | – |
| First Three Quarters of 2026 operating incomeGAAP | $418.0 million, 14.5 % | – | – |
| First Three Quarters of 2026 operating incomenon-GAAP | $766.4 million, 26.6 % | – | – |
| First Three Quarters of 2026 goodwill impairmentGAAP | $562M | – | – |
| First Three Quarters of 2026 net lossGAAP | −$313.7M | – | – |
| First Three Quarters of 2026 net incomenon-GAAP | $587.7M | – | – |
| First Three Quarters of 2026 diluted loss per shareGAAP | $(1.34) | – | – |
| First Three Quarters of 2026 diluted net income per sharenon-GAAP | $2.51 | – | – |
| First Three Quarters of 2026 adjusted EBITDAnon-GAAP | $814.2 million, 28.3 % | – | – |
| First Three Quarters of 2026 net cash provided by operating activitiesGAAP | $664.7M | – | – |
| First Three Quarters of 2026 free cash flownon-GAAP | $643.6M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AECO, Third Quarter of 2026Operating income was $132.2 million and operating income % was 33.5 %. | $395M | – | – |
| Field Systems, Third Quarter of 2026Operating income was $128.7 million and operating income % was 29.5 %. | $435.8M | – | – |
| T&L, Third Quarter of 2026Operating income was $35.7 million and operating income % was 26.3 %. | $136M | – | – |
| AECO, First Three Quarters of 2026Operating income was $374.3 million and operating income % was 31.9 %. | $1.17B | – | – |
| Field Systems, First Three Quarters of 2026Operating income was $392.5 million and operating income % was 30.5 %. | $1.29B | – | – |
| T&L, First Three Quarters of 2026Operating income was $103.4 million and operating income % was 24.8 %. | $416.6M | – | – |
Fourth Quarter of 2026 and full-year 2026 outlook
- RevenueFourth Quarter of 2026: between $1,031 million and $1,061 million; full-year 2026: between $3,910 million and $3,940 million
- Tax rateFourth Quarter of 2026 GAAP: approximately 11.4 percent; Fourth Quarter of 2026 non-GAAP: 17.1 percent; full-year 2026 GAAP: between 618.3 percent and 372.6 percent; full-year 2026 non-GAAP: 17.2 percent
- NoteFourth Quarter of 2026 GAAP earnings per share: $0.83 to $0.89
- NoteFourth Quarter of 2026 non-GAAP earnings per share: $1.13 to $1.19
- NoteFull-year 2026 GAAP loss per share: $0.55 to $0.49
- NoteFull-year 2026 non-GAAP earnings per share: $3.63 to $3.69
- NoteFull-year 2026 GAAP loss per share assumes approximately 232 million shares outstanding
- NoteFull-year 2026 non-GAAP earnings per share assumes approximately 234 million shares outstanding
- NoteFourth Quarter of 2026 GAAP and non-GAAP earnings per share assume approximately 231 million shares outstanding
Capital returns
- During the third quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million.
- First Three Quarters of 2026 repurchases of common stock were $(552.9) million, compared with $(727.4) million in 2025.
What drove it
- Third-quarter revenue was up 7 percent year-over-year and up 7 percent on an organic basis.
- ARR was $2.56 billion, up 11 percent year-over-year and up 10 percent on an organic basis.
- The company cited execution against its Connect & Scale strategy and its connected industry data.
- Third-quarter product revenue was $324.3 million and subscription and services revenue was $642.5 million.
Concerns
- GAAP operating income was $142.0 million, compared with $150.5 million in the third quarter of 2025, and GAAP operating margin was 14.7 % compared with 16.7 %.
- Third-quarter GAAP gross margin was 68.2 %, compared with 68.9 % in the third quarter of 2025; non-GAAP gross margin was 70.5 %, compared with 71.2 %.
- A $562.0 million goodwill impairment related to the T&L segment was recorded in the first three quarters of 2026. The company said 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.
- The company identifies macroeconomic outlook, trade policies, supply-chain disruptions, shifts in demand, dealer inventory, foreign exchange, subscription-model transition, AI-related developments, acquisitions and divestitures, and material weaknesses in internal controls as risks.
What to watch
- Fourth-quarter revenue guidance of between $1,031 million and $1,061 million.
- Fourth-quarter GAAP earnings per share guidance of $0.83 to $0.89 and non-GAAP earnings per share guidance of $1.13 to $1.19.
- Full-year 2026 GAAP loss per share guidance of $0.55 to $0.49, which includes forecasted goodwill impairment of 2.42 per share in the reconciliation.
- ARR and organic ARR growth following the record $2.56 billion third-quarter ARR.
- T&L performance following the goodwill impairment charge related to that segment.
Balance sheet and cash flow
- Cash and cash equivalents were $214.5 million as of Third Quarter of 2026, compared with $253.4 million at Year End 2025.
- Short-term debt was $90.2 million and long-term debt was $1,443.3 million as of Third Quarter of 2026.
- Accounts receivable, net was $610.9 million as of Third Quarter of 2026, compared with $856.0 million at Year End 2025.
- Deferred revenue was $797.8 million current and $122.3 million non-current as of Third Quarter of 2026.
- First Three Quarters of 2026 net cash provided by operating activities was $664.7 million.
- First Three Quarters of 2026 purchases of property and equipment were $(21.1) million.
- First Three Quarters of 2026 acquisitions of businesses, net of cash acquired were $(236.5) million.
- First Three Quarters of 2026 net decrease in cash and cash equivalents was $(38.9) million.
Analysis
Trimble reported third-quarter revenue of $966.8 million, up 7 percent year-over-year and up 7 percent on an organic basis. Subscription and services revenue was $642.5 million, while product revenue was $324.3 million. ARR reached $2.56 billion, up 11 percent year-over-year and up 10 percent on an organic basis, providing the company’s reported recurring-revenue indicator alongside the quarterly revenue result.
Profitability was mixed on a GAAP basis but higher on a non-GAAP income basis. GAAP operating income was $142.0 million, or 14.7 % of revenue, compared with $150.5 million, or 16.7 %, in the prior-year quarter. Non-GAAP operating income increased to $262.6 million from $254.2 million, although the non-GAAP operating margin was 27.2 % versus 28.2 %. GAAP gross margin was 68.2 %, compared with 68.9 %, and non-GAAP gross margin was 70.5 %, compared with 71.2 %.
All three reportable segments posted higher third-quarter revenue than the prior-year comparison shown in the segment table: AECO reported $395.0 million versus $358.5 million, Field Systems reported $435.8 million versus $408.7 million, and T&L reported $136.0 million versus $134.0 million. Segment operating income was $132.2 million for AECO, $128.7 million for Field Systems, and $35.7 million for T&L. The year-to-date results include a $562.0 million goodwill impairment related to T&L, which drove a first-three-quarters GAAP net loss of $(313.7) million despite non-GAAP net income of $587.7 million.
Cash generation was materially higher in the first three quarters. Net cash provided by operating activities was $664.7 million, compared with $225.9 million, and free cash flow was $643.6 million, compared with $206.2 million. Trimble repurchased approximately 4.0 million shares for $231.7 million during the third quarter, while first-three-quarters repurchases of common stock were $(552.9) million. Cash and cash equivalents were $214.5 million, with $90.2 million of short-term debt and $1,443.3 million of long-term debt.
The company guided fourth-quarter revenue to between $1,031 million and $1,061 million and non-GAAP earnings per share to $1.13 to $1.19. Full-year revenue guidance is between $3,910 million and $3,940 million, with GAAP loss per share of $0.55 to $0.49 and non-GAAP earnings per share of $3.63 to $3.69. The full-year GAAP outlook includes forecasted goodwill impairment of 2.42 per share in the reconciliation, making the progression in ARR, revenue, margins, and T&L performance central reported items to follow.
Management, verbatim
Our third quarter results surpassed expectations on both revenue and earnings per share, while delivering record annualized recurring revenue of $2.56 billion.
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.
Rob Painter, President and CEO of Trimble
Not in the filing
stated, not guessed- Period end date was not stated in the filing text.
- Prior-quarter comparisons were not reported for the key metrics.
- Percentage changes were not printed for individual segment revenue or segment operating income rows.
- Fourth-quarter operating cash flow and free cash flow guidance were not reported.
- Gross margin and operating expense guidance were not reported.
- Dividend information was not reported.
- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.