Trimble Raises 2026 Outlook After Record Recurring Revenue
Annualized recurring revenue reached a record $2.51 billion as the company lifted full-year revenue guidance to $3.90 billion–$3.95 billion.
Trimble Inc. (TRMB) lifted its full-year 2026 revenue outlook after annualized recurring revenue reached a record $2.51 billion, up 14% from a year earlier and 12% on an organic basis.
The global technology company now expects 2026 revenue of $3.90 billion to $3.95 billion, GAAP loss per share of $0.07 to $0.12, and non-GAAP earnings of $3.60 to $3.70 a share. That range sits above the May outlook of $3.835 billion to $3.915 billion in revenue and non-GAAP earnings of $3.47 to $3.64 a share. GAAP guidance assumes a 145.0% tax rate; non-GAAP guidance assumes 17.3%. Both per-share figures assume about 234 million shares outstanding.
Second-quarter revenue was $972.0 million, up 11% from a year earlier and 10% organically, after first-quarter revenue of $939.9 million that had been up 12% on both bases. Subscription and services revenue was $640.6 million; product revenue was $331.4 million. GAAP gross margin was 69.4% of revenue, a record second-quarter level versus 68.3% a year earlier. Non-GAAP gross margin was 71.8%.
GAAP operating income was $132.0 million, or 13.6% of revenue. Non-GAAP operating income was $260.6 million, or 26.8% of revenue. Adjusted EBITDA was $278.0 million, or 28.6% of revenue.
GAAP results swung to a net loss of $471.7 million, or $2.02 a share, from first-quarter GAAP net income of $98.9 million, or $0.42 a share. The loss was driven largely by a $562.0 million impairment of goodwill related to the Transportation and Logistics 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. Non-GAAP net income was $200.3 million, or $0.86 a share.
AECO segment revenue was $388.5 million, with operating income of $119.0 million, or 30.6% of segment revenue. Field Systems revenue was $442.5 million, with operating income of $145.8 million, or 32.9%. T&L revenue was $141.0 million, with operating income of $33.9 million, or 24.0%. President and CEO Rob Painter said the company increased annualized recurring revenue to a record $2.509 billion, with strong recurring revenue growth across all segments, and that the Connect and Scale strategy is building momentum.
The board authorized the repurchase of up to $1.0 billion in common stock, with no expiration date. The new authorization replaces a prior $1.0 billion authorization of which $608.2 million remained at quarter-end and was cancelled. Cash and cash equivalents were $214.4 million at quarter-end.
For the third quarter of 2026, Trimble expects revenue of $953 million to $978 million, GAAP earnings of $0.39 to $0.44 a share, and non-GAAP earnings of $0.83 to $0.88 a share. That third-quarter revenue range is above the May outlook for the second quarter of $938 million to $963 million. GAAP third-quarter guidance assumes a 24.0% tax rate; non-GAAP guidance assumes 17.3%. Both per-share figures assume about 234 million shares outstanding.