Trimble Announces Third Quarter 2026 Results and Updates Full Year Guidance
Trimble Announces Third Quarter 2026 Results and Updates Full Year Guidance • Executing Connect & Scale strategy to compound value across the Trimble-led ecosystem
- Trimble Inc. (Nasdaq: TRMB) today announced financial results for the third quarter of 2026.
• 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
• Diluted earnings per share was $0.25 on a GAAP basis and $0.86 on a non-GAAP basis
• During the third quarter, Trimble repurchased approximately 4.0 million shares for $231.7 million
"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."
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.
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.
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 .
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.
As of Third Quarter of 2026 Year End 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, 182.5 182.8 net Goodwill 4,822.0 5,239.7 Other purchased intangible 808.1 924.1 assets, net 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 141.8 211.7 benefits 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, 122.3 104.7 non-current Deferred income tax 141.7 190.5 liabilities Other non-current 391.5 285.0 liabilities 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) -94.0 10.5 income Total stockholders' equity 4,975.8 5,836.2 Total liabilities and stockholders' $ 8,535.1 $ 9,312.0 equity
Cash flow from First Three Quarters of operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net (loss) income $ -313.7 $ 267.4 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and 151.7 149.3 amortization Goodwill impairment 562.0 — Deferred income taxes -71.1 -24.3 Stock-based 118.3 111.1 compensation Other, net 12.8 53.5 (Increase) decrease in assets: Accounts receivable, 235.9 195.0 net Inventories 7.0 17.3 Other current and -30.2 -31.1 non-current assets Increase (decrease) in liabilities: Accounts payable 51.7 -13.6 Accrued compensation -67.8 -71.8 and benefits Deferred revenue -82.3 -71.1 Income taxes payable -9.0 -311.5 Other current and non-current 99.4 -44.3 liabilities Net cash provided by operating 664.7 225.9 activities Cash flow from investing activities: Divestitures of businesses, net of cash -2.0 -6.5 divested Acquisitions of businesses, net of cash -236.5 -4.4 acquired Purchases of property -21.1 -19.7 and equipment Other, net -0.9 -5.5 Net cash used in -260.5 -36.1 investing activities Cash flow from financing activities: Issuance of common stock, net of tax -15.7 1.1 withholdings Repurchases of common -552.9 -727.4 stock Proceeds from debt and revolving credit 1,158.7 577.2 lines Payments on debt and revolving credit -1,018.5 -577.2 lines Other, net -7.9 -3.0 Net cash used in -436.3 -729.3 financing activities Effect of exchange rate changes on cash -6.8 24.4 and cash equivalents Net decrease in cash and cash -38.9 -515.1 equivalents Cash and cash equivalents - beginning 253.4 747.8 of period(1) Cash and cash equivalents - end of $ 214.5 $ 232.7 period (1) Includes $9.0 million of cash and cash equivalents classified as held for sale as of January 3, 2025.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
Non-GAAP gross margin and operating expenses exclude the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed.
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.
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.
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.
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.
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.
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.
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 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 refers to revenue excluding the impacts of (i) foreign currency translation and (ii) acquisitions and divestitures that closed in the prior 12 months.
Full text with the tables
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)
Fir…
Third Thr…
Quar… Qua…
of of
Rev… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Pro… $ 324.3 $ 302.5 $ 966.9 $ 866…
Sub…
and 642.5 598.7 1,91… 1,7…
ser…
Tot… 966.8 901.2 2,87… 2,6…
rev…
Cost
of
sal…
Pro… 172.4 148.9 490.7 437…
Sub…
and 118.5 114.8 357.9 351…
ser…
Amo…
of
pur… 16.8 16.4 49.8 48.9
int…
ass…
Tot…
cost 307.7 280.1 898.4 837…
of
sal…
Gro… 659.1 621.1 1,98… 1,7…
mar…
Gro…
mar… 68.2 % 68.9 % 68.8 % 68.0 %
(%)
Ope…
exp…
Res…
and 162.9 152.9 509.5 474…
dev…
Sal…
and 177.7 158.8 530.1 470…
mar…
Gen…
and 124.7 117.5 401.1 356…
adm…
Res… 24.9 14.2 40.4 22.7
Amo…
of
pur… 26.9 27.2 81.2 79.6
int…
ass…
Tot…
ope… 517.1 470.6 1,56… 1,4…
exp…
Ope… 142.0 150.5 418.0 375…
inc…
Non…
(ex…
inc…
net:
Goo… — — -562… —
imp…
Int…
exp… -20.4 -20.7 -60.8 -55…
net
Inc…
(lo…
from
equ… 0.8 -0.5 4.2 2.8
met…
inv…
net
Oth…
(lo… -1.1 -4.2 8.4 1.9
inc…
net
Tot…
non… -20.7 -25.4 -610… -51…
exp…
net
Inc…
(lo… 121.3 125.1 -192… 324…
bef…
tax…
Inc…
tax 62.2 13.6 121.5 57.4
pro…
Net
inc… $ 59.1 $ 111.5 $ -313… $ 267…
(lo…
Ear…
(lo…
per
sha…
Bas… $ 0.25 $ 0.47 $ -1.34 $ 1.11
Dil… $ 0.25 $ 0.46 $ -1.34 $ 1.10
Sha…
used
in
cal…
ear…
(lo…
per
sha…
Bas… 232.4 238.2 233.3 239…
Dil… 233.2 240.4 233.3 242…
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
As of
Third Quarter of 2026 Year End 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, 182.5 182.8
net
Goodwill 4,822.0 5,239.7
Other purchased intangible 808.1 924.1
assets, net
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 141.8 211.7
benefits
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, 122.3 104.7
non-current
Deferred income tax 141.7 190.5
liabilities
Other non-current 391.5 285.0
liabilities
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) -94.0 10.5
income
Total stockholders' equity 4,975.8 5,836.2
Total liabilities and
stockholders' $ 8,535.1 $ 9,312.0
equity
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Cash flow from First Three Quarters of
operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net (loss) income $ -313.7 $ 267.4
Adjustments to
reconcile net (loss)
income to net cash
provided by operating
activities:
Depreciation and 151.7 149.3
amortization
Goodwill impairment 562.0 —
Deferred income taxes -71.1 -24.3
Stock-based 118.3 111.1
compensation
Other, net 12.8 53.5
(Increase) decrease in
assets:
Accounts receivable, 235.9 195.0
net
Inventories 7.0 17.3
Other current and -30.2 -31.1
non-current assets
Increase (decrease) in
liabilities:
Accounts payable 51.7 -13.6
Accrued compensation -67.8 -71.8
and benefits
Deferred revenue -82.3 -71.1
Income taxes payable -9.0 -311.5
Other current and
non-current 99.4 -44.3
liabilities
Net cash provided by
operating 664.7 225.9
activities
Cash flow from
investing activities:
Divestitures of
businesses, net of cash -2.0 -6.5
divested
Acquisitions of
businesses, net of cash -236.5 -4.4
acquired
Purchases of property -21.1 -19.7
and equipment
Other, net -0.9 -5.5
Net cash used in -260.5 -36.1
investing activities
Cash flow from
financing activities:
Issuance of common
stock, net of tax -15.7 1.1
withholdings
Repurchases of common -552.9 -727.4
stock
Proceeds from debt and
revolving credit 1,158.7 577.2
lines
Payments on debt and
revolving credit -1,018.5 -577.2
lines
Other, net -7.9 -3.0
Net cash used in -436.3 -729.3
financing activities
Effect of exchange rate
changes on cash -6.8 24.4
and cash equivalents
Net decrease in cash
and cash -38.9 -515.1
equivalents
Cash and cash
equivalents - beginning 253.4 747.8
of
period(1)
Cash and cash
equivalents - end of $ 214.5 $ 232.7
period
(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)
Third Reportable
Quarter of Segments Field
2026 AECO Systems T&L
──────────────────────────────────────────────────────────────────────────────
Segment $ 395.0 $ 435.8 $ 136.0
revenue
Cost of 63.9 189.6 31.0
sales
Operating 198.9 117.5 69.3
expense
Operating $ 132.2 $ 128.7 $ 35.7
income
Operating 33.5 % 29.5 % 26.3 %
income %
Third
Quarter of
2025
Segment $ 358.5 $ 408.7 $ 134.0
revenue
Cost of 58.7 167.4 32.3
sales
Operating 185.9 104.6 67.1
expense
Operating $ 113.9 $ 136.7 $ 34.6
income
Operating 31.8 % 33.4 % 25.8 %
income %
First
Three Reportab…
Quarters Segments Field
of 2026 AECO Systems T&L
──────────────────────────────────────────────────────────────────────────────
Segment $ 1,174.6 $ 1,287.5 $ 416.6
revenue
Cost of 187.8 541.9 99.5
sales
Operati… 612.5 353.1 213.7
expense
Operati… $ 374.3 $ 392.5 $ 103.4
income
Operati… 31.9 % 30.5 % 24.8 %
income %
First
Three
Quarters
of 2025
Segment $ 1,044.2 $ 1,160.6 $ 412.7
revenue
Cost of 177.3 483.5 110.5
sales
Operati… 555.0 312.8 212.9
expense
Operati… $ 311.9 $ 364.3 $ 89.3
income
Operati… 29.9 % 31.4 % 21.6 %
income %
GAAP TO NON-GAAP RECONCILIATION
(Dollars in millions, except per share data)
(Unaudited)
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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.