Second Quarter 2026
Filed Aug 12, 2026Trimble Announces Second Quarter 2026 Results and Raises Full Year Guidance
Revenue was $972.0 million, up 11 percent year-over-year, ARR reached $2.51 billion, gross margin reached a record 69.4 percent, and the company raised full-year 2026 revenue and earnings guidance. GAAP results were materially affected by a $562.0 million goodwill impairment related to Transportation and Logistics.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $972.0 million | – | up 11 percent |
| Product revenueGAAP | $331.4 million | – | – |
| Subscription and services revenueGAAP | $640.6 million | – | – |
| Total cost of salesGAAP | $297.1 million | – | – |
| Product cost of salesGAAP | $160.1 million | – | – |
| Subscription and services cost of salesGAAP | $120.1 million | – | – |
| Amortization of purchased intangible assets in cost of salesGAAP | $16.9 million | – | – |
| Gross marginGAAP | $674.9 million | – | – |
| Gross margin (%)GAAP | 69.4 % | – | – |
| Research and development expenseGAAP | $177.1 million | – | – |
| Sales and marketing expenseGAAP | $176.3 million | – | – |
| General and administrative expenseGAAP | $149.7 million | – | – |
| Restructuring expenseGAAP | $12.6 million | – | – |
| Amortization of purchased intangible assets in operating expenseGAAP | $27.2 million | – | – |
| Total operating expenseGAAP | $542.9 million | – | – |
| Operating incomeGAAP | $132.0 million | – | – |
| Operating marginGAAP | 13.6 percent of revenue | – | – |
| Non-GAAP operating incomenon-GAAP | $260.6 million | – | – |
| Non-GAAP operating marginnon-GAAP | 26.8 percent of revenue | – | – |
| Goodwill impairmentGAAP | $(562.0) million | – | – |
| Interest expense, netGAAP | $(20.9) million | – | – |
| Income from equity method investments, netGAAP | $2.6 million | – | – |
| Other income, netGAAP | $3.5 million | – | – |
| Total non-operating expense, netGAAP | $(576.8) million | – | – |
| Loss before taxesGAAP | $(444.8) million | – | – |
| Income tax provisionGAAP | $26.9 million | – | – |
| Net lossGAAP | $(471.7) million | – | – |
| Non-GAAP net incomenon-GAAP | $200.3 million | – | – |
| Basic loss per shareGAAP | $(2.02) | – | – |
| Diluted loss per shareGAAP | $(2.02) | – | – |
| Diluted earnings per sharenon-GAAP | $0.86 | – | – |
| Basic shares used in calculating loss per shareGAAP | 233.0 | – | – |
| Diluted shares used in calculating loss per shareGAAP | 233.0 | – | – |
| Annualized recurring revenueother | $2.51 billion | – | up 14 percent year-over-year |
| Annualized recurring revenue organic growthother | up 12 percent on an organic basis | – | up 12 percent on an organic basis |
| Adjusted EBITDAnon-GAAP | $278.0 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 28.6 percent of revenue | – | – |
| First Two Quarters total revenueGAAP | $1,911.9 million | – | – |
| First Two Quarters gross marginGAAP | $1,321.2 million | – | – |
| First Two Quarters gross margin (%)GAAP | 69.1 % | – | – |
| First Two Quarters operating incomeGAAP | $276.0 million | – | – |
| First Two Quarters net lossGAAP | $(372.8) million | – | – |
| First Two Quarters diluted loss per shareGAAP | $(1.60) | – | – |
Full-year 2026 and third quarter of 2026 outlook
- RevenueFull-year 2026: between $3,900 million and $3,950 million; third quarter of 2026: between $953 million and $978 million
- Tax rateFull-year 2026 GAAP guidance assumes a tax rate of 145.0 percent and non-GAAP guidance assumes a tax rate of 17.3 percent; third quarter of 2026 GAAP guidance assumes a tax rate of 24.0 percent and non-GAAP guidance assumes a tax rate of 17.3 percent
- NoteFull-year 2026 GAAP loss per share of $0.07 to $0.12
- NoteFull-year 2026 non-GAAP earnings per share of $3.60 to $3.70
- NoteFull-year 2026 GAAP loss and non-GAAP earnings per share assume approximately 234 million shares outstanding
- NoteThird quarter of 2026 GAAP earnings per share of $0.39 to $0.44
- NoteThird quarter of 2026 non-GAAP earnings per share of $0.83 to $0.88
- NoteThird quarter of 2026 GAAP and non-GAAP earnings per share assume approximately 234 million shares outstanding
Capital returns
- The Board of Directors authorized the repurchase of up to $1.0 billion in shares of the Company's common stock.
- The new authorization replaces the prior authorization of up to $1.0 billion, of which $608.2 million was remaining as of the end of the second quarter of 2026, but is now cancelled.
- The 2026 stock repurchase program does not have an expiration date.
What drove it
- Revenue was up 11 percent on a year-over-year basis and up 10 percent on an organic basis.
- ARR was $2.51 billion, up 14 percent year-over-year and up 12 percent on an organic basis.
- The company cited strong recurring revenue growth across all segments.
- Gross margin was described as a record second quarter result.
- Management cited increasingly connected data and workflows across its ecosystem under its Connect and Scale strategy.
Concerns
- GAAP net loss was driven largely by a $562.0 million impairment of goodwill related to the Transportation and Logistics segment.
- Restructuring expense was $12.6 million, compared with $4.0 million in the prior-year second quarter.
- The company identified trade tensions, export control restrictions, supply-chain disruptions, inflationary pressures, foreign-currency fluctuations, dealer inventory, subscription-model transition, AI-related developments, acquisitions or divestitures, and material weaknesses in internal controls as risks.
What to watch
- Execution against full-year 2026 revenue guidance of between $3,900 million and $3,950 million.
- Third-quarter 2026 revenue in the range of between $953 million and $978 million.
- Whether ARR growth and recurring revenue growth across all segments continue.
- The impact of the Transportation and Logistics goodwill impairment and related operating performance.
- Use of the new authorization to repurchase up to $1.0 billion in common stock.
Balance sheet and cash flow
- Cash and cash equivalents were $214.4 million as of the second quarter of 2026, compared with $253.4 million at year end 2025.
- Short-term debt was $16.4 million as of the second quarter of 2026, compared with $— at year end 2025.
- Long-term debt was $1,442.9 million as of the second quarter of 2026, compared with $1,392.2 million at year end 2025.
- Goodwill was $4,826.6 million as of the second quarter of 2026, compared with $5,239.7 million at year end 2025.
- Accounts receivable, net was $598.1 million as of the second quarter of 2026, compared with $856.0 million at year end 2025.
- Deferred revenue was $833.9 million as of the second quarter of 2026, compared with $894.0 million at year end 2025.
- For the first two quarters of 2026, net loss was $(372.8) million; depreciation and amortization was $101.0 million; goodwill impairment was $562.0 million; and stock-based compensation was $85.1 million.
Analysis
Trimble reported second-quarter revenue of $972.0 million, up 11 percent year-over-year and up 10 percent on an organic basis. Product revenue was $331.4 million and subscription and services revenue was $640.6 million. ARR reached $2.51 billion, up 14 percent year-over-year and up 12 percent on an organic basis. Management characterized recurring revenue growth as strong across all segments and attributed momentum to its Connect and Scale strategy.
Mix and profitability were notable strengths. Gross margin was a record second-quarter 69.4 %, compared with 68.3 % in the prior-year quarter. GAAP operating income was $132.0 million, or 13.6 percent of revenue, while non-GAAP operating income was $260.6 million, or 26.8 percent of revenue. Adjusted EBITDA was $278.0 million, or 28.6 percent of revenue. Operating expenses included $12.6 million of restructuring expense, compared with $4.0 million in the prior-year second quarter.
GAAP bottom-line performance was dominated by the $562.0 million goodwill impairment related to the Transportation and Logistics segment. That charge contributed to GAAP net loss of $(471.7) million and diluted loss per share of $(2.02). In contrast, non-GAAP net income was $200.3 million and non-GAAP diluted earnings per share was $0.86. The filing does not provide prior-quarter figures, so quarter-over-quarter changes cannot be assessed from the supplied document.
The balance sheet showed cash and cash equivalents of $214.4 million and long-term debt of $1,442.9 million as of the second quarter of 2026. The board approved a new authorization to repurchase up to $1.0 billion of common stock, replacing an earlier authorization that had $608.2 million remaining at quarter end. The release does not report actual second-quarter repurchase activity or dividends.
Management raised full-year 2026 guidance to revenue between $3,900 million and $3,950 million, GAAP loss per share of $0.07 to $0.12, and non-GAAP earnings per share of $3.60 to $3.70. Third-quarter guidance calls for revenue between $953 million and $978 million, GAAP earnings per share of $0.39 to $0.44, and non-GAAP earnings per share of $0.83 to $0.88. The principal reported items for investors to monitor are the durability of ARR growth, gross-margin performance, Transportation and Logistics following the impairment, and delivery against the raised full-year outlook.
Management, verbatim
We delivered another strong quarter, increasing annualized recurring revenue to a record $2.509 billion, with strong recurring revenue growth across all segments.
Rob Painter, President and CEO of Trimble
Our Connect and Scale strategy is building momentum with increasingly connected data and workflows across our ecosystem. Trimble is well positioned to accelerate AI-enabled value for customers and shareholders.
Rob Painter, President and CEO of Trimble
Not in the filing
stated, not guessed- Period end date was not provided in the supplied filing text.
- Prior-quarter comparisons were not provided for the reported second-quarter metrics.
- Revenue by reportable operating segment was not provided in the supplied filing text.
- Gross-margin and operating-expense guidance were not provided.
- Prior-quarter outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- The supplied cash-flow statement is truncated before the amount for net cash provided by operating activities and does not provide free cash flow.
- Second-quarter stock repurchases, dividend payments, and actual dividend declarations were not provided.
- Prior-year comparisons for non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted EBITDA were not provided.
AlphaAI analysis generated 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 cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.