Trimble Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 2 lowered, 6 new. The quarter’s numbers.

Key takeaways

Revenue rose 7 percent: Revenue was $966.8 million, against $901.2 million a year earlier, up 7 percent on an organic basis as well. Second-quarter revenue had risen 11 percent. Source
ARR reached a record $2.56 billion: Annualized recurring revenue was $2.56 billion, a record, up from $2.51 billion in the second quarter. Source
Diluted EPS $0.25 GAAP, $0.86 non-GAAP: Diluted EPS was $0.25 on a GAAP basis, against $0.46 a year earlier, and $0.86 non-GAAP, against $0.81. Source
Field Systems margin fell: Field Systems revenue was $435.8 million, against $408.7 million. Operating margin was 29.5 percent, against 33.4 percent, as cost of sales rose to $189.6 million. Source
Repurchased $231.7 million of stock: Trimble repurchased about 4.0 million shares for $231.7 million in the quarter. Year-to-date repurchases were $552.9 million, against $727.4 million. Source
Free cash flow rose year to date: Free cash flow for the first three quarters was $643.6 million, against $206.2 million. Operating cash flow was $664.7 million, against $225.9 million. Source
Fourth-quarter revenue sits above third quarter: The fourth-quarter revenue range of $1,031 million to $1,061 million compares with third-quarter revenue of $966.8 million reported in this release. Source
T&L goodwill impairment of $562.0 million: The year-to-date GAAP results include a $562.0 million goodwill impairment related to the T&L segment, recorded in the second quarter. Source

“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

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Full year 2026	$3,910 million to $3,940 million
GAAP diluted EPS Source	Full year 2026	GAAP loss per share of $0.55 to $0.49	Lowered from GAAP loss per share of $0.07 to $0.12
Non-GAAP diluted EPS Source	Full year 2026	$3.63 to $3.69
GAAP tax rate Source	Full year 2026	between 618.3 percent and 372.6 percent
Non-GAAP tax rate Source	Full year 2026	17.2 percent	Lowered from 17.3 percent
Shares outstanding Source	Full year 2026	approximately 232 million (GAAP) and 234 million (non-GAAP)
Revenue Source	Fourth quarter 2026	$1,031 million to $1,061 million	New
GAAP diluted EPS Source	Fourth quarter 2026	$0.83 to $0.89	New
Non-GAAP diluted EPS Source	Fourth quarter 2026	$1.13 to $1.19	New
GAAP tax rate Source	Fourth quarter 2026	approximately 11.4 percent	New
Non-GAAP tax rate Source	Fourth quarter 2026	17.1 percent	New
Shares outstanding Source	Fourth quarter 2026	approximately 231 million	New

What changed from last quarter

New guidance: Fourth-quarter 2026 guidance was given for the first time, covering revenue, GAAP and non-GAAP EPS, tax rates and share count. Source
Guidance lowered: Full-year GAAP loss per share is stated as $0.55 to $0.49, against $0.07 to $0.12 in the second-quarter release. Source

Results and growth drivers

Revenue rose 7 percent: Revenue was $966.8 million, against $901.2 million a year earlier, up 7 percent on an organic basis as well. Second-quarter revenue had risen 11 percent. Source
ARR reached a record $2.56 billion: Annualized recurring revenue was $2.56 billion, a record, up from $2.51 billion in the second quarter. Source
Diluted EPS $0.25 GAAP, $0.86 non-GAAP: Diluted EPS was $0.25 on a GAAP basis, against $0.46 a year earlier, and $0.86 non-GAAP, against $0.81. Source
GAAP operating income fell: GAAP operating income was $142.0 million, against $150.5 million a year earlier. Non-GAAP operating income was $262.6 million, against $254.2 million. Source
Net income higher non-GAAP, lower GAAP: GAAP net income was $59.1 million, against $111.5 million a year earlier. Non-GAAP net income was $200.5 million, against $194.7 million. Source
Adjusted EBITDA rose in dollars: Adjusted EBITDA was $278.5 million, 28.8 percent of revenue, against $269.4 million and 29.9 percent a year earlier. Source

Segments and regions

AECO revenue and margin rose: AECO segment revenue was $395.0 million, against $358.5 million a year earlier. Operating margin was 33.5 percent, against 31.8 percent. Source
Field Systems margin fell: Field Systems revenue was $435.8 million, against $408.7 million. Operating margin was 29.5 percent, against 33.4 percent, as cost of sales rose to $189.6 million. Source
T&L revenue and margin edged up: T&L segment revenue was $136.0 million, against $134.0 million. Operating margin was 26.3 percent, against 25.8 percent. Source
Year-to-date segment margins: First three quarters operating margin was 31.9 percent for AECO, 30.5 percent for Field Systems and 24.8 percent for T&L. Source

“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

Products and customers

Subscription and services rose: Subscription and services revenue was $642.5 million, up from $598.7 million, about two-thirds of the total. Product revenue was $324.3 million, up from $302.5 million. Source
Cost of sales rose in both lines: Product cost of sales was $172.4 million, against $148.9 million. Subscription and services cost of sales was $118.5 million, against $114.8 million. Source
Current deferred revenue fell: Current deferred revenue was $797.8 million, against $833.9 million at the second quarter and $894.0 million at year end. Non-current deferred revenue was $122.3 million. Source

Costs, margins and pricing

GAAP gross margin eased: GAAP gross margin was 68.2 percent, against 68.9 percent a year earlier. Non-GAAP gross margin was 70.5 percent, against 71.2 percent. Source
Sales and marketing and G&A rose: Sales and marketing expense was $177.7 million, against $158.8 million. General and administrative expense was $124.7 million, against $117.5 million. Source
Restructuring and other costs rose: Restructuring and other costs excluded from non-GAAP operating income were $30.7 million, against $22.2 million a year earlier. Source
Non-GAAP operating margin slipped: Non-GAAP operating income was 27.2 percent of revenue, against 28.2 percent. Non-GAAP operating expenses were 43.3 percent of revenue, against 43.0 percent. Source

Capital, cash and returns to shareholders

Repurchased $231.7 million of stock: Trimble repurchased about 4.0 million shares for $231.7 million in the quarter. Year-to-date repurchases were $552.9 million, against $727.4 million. Source
Free cash flow rose year to date: Free cash flow for the first three quarters was $643.6 million, against $206.2 million. Operating cash flow was $664.7 million, against $225.9 million. Source
Short-term debt rose to $90.2 million: Short-term debt was $90.2 million, against $16.4 million at the second quarter. Long-term debt was $1,443.3 million. Source
Receivables fell from year end: Accounts receivable, net was $610.9 million, against $856.0 million at year end and $598.1 million at the second quarter. Source

Strategy and investment

Connect & Scale strategy: Management describes the quarter as execution of its Connect & Scale strategy across the Trimble-led ecosystem. Source
Acquisition cash outlay year to date: Acquisitions of businesses, net of cash acquired, were $236.5 million year to date, against $4.4 million a year earlier. Divestitures were $2.0 million. Source
Equity investments carried at $608.4 million: Equity investments were $608.4 million at quarter end, against $610.8 million at year end. Income from equity method investments was $0.8 million in the quarter. Source

Full-year and fourth-quarter guidance

Fourth-quarter revenue sits above third quarter: The fourth-quarter revenue range of $1,031 million to $1,061 million compares with third-quarter revenue of $966.8 million reported in this release. Source
Fourth-quarter GAAP to non-GAAP bridge: The fourth-quarter bridge adds amortization of $0.18, acquisition items of $0.03, stock compensation of $0.15 and restructuring of $0.06, less a $0.12 tax adjustment. Source
Full-year GAAP tax rate shown as range: The full-year GAAP tax rate is shown as a range of 618.3 percent to 372.6 percent, as written, while the non-GAAP rate is 17.2 percent. Source

One-time items in GAAP results

T&L goodwill impairment of $562.0 million: The year-to-date GAAP results include a $562.0 million goodwill impairment related to the T&L segment, recorded in the second quarter. Source
Impairment trigger described by company: The company says the impairment followed a sustained fall in market capitalization and stock price, and lower software market multiples. Source
Re-audit remediation costs excluded: Other restructuring and other costs excluded from non-GAAP results include one-time expenses from the re-audit and remediation of control deficiencies. Source
Restructuring expense rose year to date: GAAP restructuring expense was $24.9 million in the quarter, against $14.2 million, and $40.4 million year to date, against $22.7 million. Source

Figures management reported

Figure	Reported
Annualized recurring revenue (ARR) Source	$2.56 billion, up 11 percent year-over-year, up 10 percent on an organic basis

Risks management discussed

Financial: A $562.0 million goodwill impairment on the T&L segment was tied to a sustained fall in market capitalization and stock price, and lower software market multiples. Source
Operational: One-time costs from the re-audit and remediation of control deficiencies are included in other costs excluded from non-GAAP results. Source

Earlier plans management reported on

Ahead: Management said third-quarter results surpassed expectations on both revenue and earnings per share. Source
Not stated: Management described the full-year guidance as reflecting execution against the Connect & Scale strategy. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

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

Forward-looking statements notice

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)

	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

	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

	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	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

	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)

				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
	GAAP revenue:			$966.8		$901.2		$2,878.7		$2,617.5
	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%
	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%
	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%
	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)
	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%
REVENUE:
GROSS MARGIN:
OPERATING EXPENSES:
OPERATING INCOME:
NON-OPERATING EXPENSE, NET:
INCOME TAX PROVISION:

	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
	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
	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
	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 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
NET INCOME (LOSS):
DILUTED NET INCOME (LOSS) PER SHARE:
ADJUSTED EBITDA:
FREE CASH FLOW:
FORECASTED DILUTED NET INCOME (LOSS) PER SHARE:

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.