TRIMBLE INC.
For the period ended Oct 2, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 2, 2026 · Filed Nov 4, 2026
TRMB$54.11+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-07-03; filed 2026-08-12.
0000864749-26-000108
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations“Supplemental Disclosure of Non-GAAP Financial Measures and Annualized Recurring Revenue”Current report: 10-Q
Period ended 2026-10-02; filed 2026-11-04.
0000864749-26-000121
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations“Supplemental Disclosure of Non-GAAP Financial Measures and Annualized Recurring Revenue”The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 122 current paragraphs.
81 unchanged; 32 reworded; 9 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
•Expand operating margins through operational efficiency, organizational streamlining, and other targeted cost-savings initiatives.
Current report
Global macroeconomic conditions remain challenging, influenced by persistent inflationary pressures, interest and exchange rate volatility, the ongoing conflict in the Middle East, and evolving trade policies. Additionally, expanded AI infrastructure deployment and data center expansions are driving strong demand and price increases for certain commodities. We are actively managing input costs and procurement timelines through strategic sourcing and regional inventory positioning.
Current report
Gross margin increased for the third quarter primarily due to organic revenue growth. Gross margin as a percentage of revenues slightly decreased for the third quarter due to a higher mix of hardware revenue with lower gross margins.
Current report
Operating income and operating income as a percentage of revenue increased for the first three quarters primarily due to organic revenue growth and gross margin expansion.
Current report
Non-operating expense, net slightly decreased for the third quarter mainly due to strategic investment impairment from the prior year, offset by foreign exchange rate fluctuations.
Current report
For the third quarter of 2026, our effective income tax rate was 51.3%, as compared to 10.9% in the corresponding period in 2025. The increase was primarily driven by a one-time tax reserve charge, partially offset by a one-time deferred tax benefit from an internal restructuring during the third quarter of 2026 and a one-time benefit from the revaluation of deferred tax liabilities due to a German tax rate decrease in the prior year.
Current report
Operating income and operating income as a percentage of revenue both decreased for the third quarter primarily due to an increased mix of lower margin hardware and higher sales and marketing expenses associated with revenue expansion.
Current report
Operating income increased for the first three quarters primarily due to organic revenue growth and gross margin expansion. Operating income as a percentage of revenue for the first three quarters decreased due to an increased mix of lower margin hardware and higher operating expenses from marketing expenses and sales commissions associated with revenue expansion, and to a lesser extent, continued investment in product development.
Current report
In October 2026, we entered into a 2026 Term Loan providing for an unsecured delayed draw term loan facility in the aggregate principal amount of $500.0 million (see Note 9, Debt). As of October 2, 2026, no amounts have been drawn under the 2026 Term Loan.
Removed paragraphs (8)
Previous report
The combined business aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems.
Previous report
Macroeconomic conditions continue to present significant challenges globally, driven by geopolitical tensions, such as the conflict in the Middle East, tariff and trade policies, exchange rate and interest rate volatility, and persistent inflationary pressures.
Previous report
The recent conflict in the Middle East may result in increased inflationary pressure and economic uncertainty. Additionally, the heightened trade tensions and related uncertainty of tariffs and imposed export control restrictions between the United States and its trading partners create additional volatility. The extent and duration of the Middle East conflict and tariffs, and their impact on global economic conditions remain uncertain and depend on various factors, including international negotiations, policy responses, potential exemptions, and shifts in global supply and demand.
Previous report
If there were to be a deterioration in the global economy, the economies of the countries or regions where our customers are located or do business, or the industries that we or our customers serve, the demand for our products and services may decrease. We are closely monitoring global developments.
Previous report
Operating income increased for the second quarter and first two quarters primarily due to organic revenue growth and gross margin expansion, partially offset by increased transaction costs and higher sales and marketing costs associated with revenue growth.
Previous report
Operating income and operating income as a percentage of revenue both increased for the second quarter and first two quarters primarily due to organic revenue growth and gross margin expansion.
Previous report
Stock Repurchase Program
Previous report
Subsequent to the end of the second quarter of 2026, the Board of Directors approved a new stock repurchase program authorizing up to $1.0 billion in repurchases of our common stock, which replaced the existing December 2025 Program. See Note 2, Common Stock Repurchases for additional information regarding our stock repurchase program.
Reworded paragraphs (32)
Previous wording
There have been no material changes to our critical accounting policies and estimates during the first two quarters of 2026. For a complete discussion of our critical accounting policies and estimates, refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the 2025 Form 10-K.
Current wording
There have been no material changes to our critical accounting policies and estimates during the first three quarters of 2026. For a complete discussion of our critical accounting policies and estimates, refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the 2025 Form 10-K.
Previous wording
•Optimize go-to-market strategies to best access our markets; and
Current wording
•Optimize go-to-market strategies to best access our markets;
Previous wording
•Pursue strategic and targeted acquisitions, divestitures, joint ventures, and investments.
Current wording
•Pursue strategic and targeted acquisitions, divestitures, joint ventures, and investments; and
Previous wording
Our focus on these growth drivers has led tosustained growth in revenue and profitability, evolving into a more streamlined and resilient business model. We continue to experience a shift toward a more significant mix of recurring revenue as demonstrated by our success in driving annualized recurring revenue (“ARR”) of $2.5 billion, which represents growth of 14% year-over-year at the end of the second quarter of 2026. Excluding the impact of foreign currency, acquisitions, and divestitures, organic ARR growth was 12%. This shift toward recurring revenue has positively impacted our revenue mix, growth, and profitability over time and is leading to improved visibility in our businesses. Our software, services, and recurring revenue represented 77% of total revenue for both the second quarter and the first two quarters of 2026. Additionally, we continue to maintain focus on increasing our mix of higher margin recurring revenue, which was accelerated by recent acquisitions and divestitures.
Current wording
Our focus on these growth drivers has led tosustained growth in revenue and profitability, evolving into a more streamlined and resilient business model. We continue to experience a shift toward a more significant mix of recurring revenue as demonstrated by our success in driving annualized recurring revenue (“ARR”) of $2.6 billion, which represents growth of 11% year-over-year at the end of the third quarter of 2026. Excluding the impact of foreign currency, acquisitions, and divestitures, organic ARR growth was 10%. This shift toward recurring revenue has positively impacted our revenue mix, growth, and profitability over time and is leading to improved visibility in our businesses. Our software, services, and recurring revenue represented 76% and 77% of total revenue for the third quarter and the first three quarters of 2026. Additionally, we continue to maintain focus on increasing our mix of higher margin recurring revenue, which was accelerated by our most recent acquisitions and divestitures.
Previous wording
We acquire businesses that align with our long-term growth strategies including our strategic product roadmap and, conversely, we divest certain businesses that no longer fit those strategies. This is demonstrated by the 14 acquisitions and 25 divestitures that we have completed since 2020.
Current wording
We acquire businesses that align with our long-term growth strategies including our strategic product roadmap and, conversely, we divest certain businesses that no longer fit those strategies. This is demonstrated by the 15 acquisitions and 25 divestitures that we have completed since 2020.
Previous wording
On April 4, 2026, we acquired 100% of the equity interests in Document Crunch for consideration of $246.4 million. We financed the acquisition by borrowing from our credit facilities. Document Crunch is an AI platform advanced in construction-specific AI document analysis and risk management across the project lifecycle. This acquisition aims to strengthen document intelligence and compliance automation across our construction ecosystem and enhance existing workflows in project management and the construction ERP system. Document Crunch is reported as part of our AECO segment. We have included the financial results of Document Crunch in our Consolidated Financial Statements starting in the second quarter of 2026.
Current wording
On April 4, 2026, we acquired 100% of the equity interests in Document Crunch for cash consideration of $246.4 million. Document Crunch is an AI platform advanced in construction-specific AI document analysis and risk management across the project lifecycle. This acquisition aims to strengthen document intelligence and compliance automation across our construction ecosystem and enhance existing workflows in project management and the construction ERP system. Document Crunch is reported as part of our AECO segment. We included the financial results of Document Crunch in our Consolidated Financial Statements starting in the second quarter of 2026.
Previous wording
As of July 3, 2026, Trimble was approved for a $17.8 million tariff refund under the U.S. Customs and Border Protection (CBP) IEEPA refund program. Of this amount, we received $13.9 million in cash in the second quarter of 2026 and reversed the previously recognized cost of goods sold. Additionally, we plan to issue refunds to certain customers whose historical purchases from Trimble included additional charges due to tariffs. The refunds are accrued as current liabilities on the Condensed Consolidated Balance Sheet and as a reduction of revenue.
Current wording
In the second quarter of 2026, we received approval for a $17.8 million tariff refund under the U.S. Customs and Border Protection (CBP) IEEPA refund program, which was received by the end of the third quarter of 2026. In certain cases, we passed refund amounts on to customers. We reversed the previously recognized cost of goods sold and recorded the customer refunds as a reduction of revenue in the second quarter of 2026.
Previous wording
Second Quarter and First Two Quarters of 2026 as Compared to 2025
Current wording
Third Quarter and First Three Quarters of 2026 as Compared to 2025
Previous wording
Total organic revenue increased for the second quarter and first two quarters from both strong product demand and subscription and services growth.
Current wording
Total organic revenue increased for the third quarter and first three quarters from both strong product demand and subscription and services growth, primarily in our AECO and Field Systems segments.
Previous wording
Organic product revenue increased for the second quarter and first two quarters primarily due to strong end-user demand for civil construction solutions and revenue growth in surveying products.
Current wording
Organic product revenue increased for the third quarter and first three quarters primarily due to strong end-user demand for civil construction solutions and revenue growth in geospatial products.
Previous wording
Organic subscription and services revenue increased for the second quarter and first two quarters due to subscription growth across all segments, most notably, in AECO.
Current wording
Organic subscription and services revenue increased for the third quarter and first three quarters primarily due to subscription growth across all segments, most notably, in AECO.
Previous wording
Gross margin and gross margin as a percentage of revenue increased for the second quarter and first two quarters primarily due to revenue growth and the improved mix of higher margin subscription and software term license sales.
Current wording
Gross margin and gross margin as a percentage of revenues increased for the first three quarters primarily due to revenue growth and the improved mix of higher margin subscription and software term license sales.
Previous wording
Operating income as a percentage of revenue decreased for the second quarter due to higher operating expenses. Operating income as a percentage of revenue increased for the first two quarters primarily due to organic revenue growth and gross margin expansion.
Current wording
Operating income decreased for the third quarter due to higher operating expenses, including higher sales and marketing costs associated with revenue growth, and higher restructuring expenses associated with cost-savings initiatives. Operating income as a percentage of revenue decreased for the third quarter primarily due to an increased mix of lower margin hardware.
Previous wording
R&D expense increased for the second quarter and first two quarters primarily due to increased software and cloud usage, compensation expenses, professional service costs, and foreign exchange rate fluctuation. The R&D expense increase for the first two quarters was partially offset by previous divestitures. We believe that developing and introducing new solutions, including AI, are critical to our future success, and we expect to continue the active development of new products.
Current wording
R&D expense increased for the third quarter and first three quarters primarily due to increased software and cloud usage and professional service costs. The R&D expense increase for the first three quarters was partially offset by previous divestitures. We believe that developing and introducing new solutions, including AI, are critical to our future success, and we expect to continue the active development of new products.
Previous wording
S&M expense increased for the second quarter and first two quarters primarily due to marketing and travel expenses related to revenue growth, as well as higher compensation expenses including commissions.
Current wording
S&M expense increased for the third quarter and first three quarters primarily due to marketing events and related travel expenditures supporting revenue growth, as well as higher compensation expenses including commissions.
Previous wording
G&A expense increased for the second quarter and first two quarters primarily due to increased transaction costs, higher compensation expenses, and software expenditures.
Current wording
G&A expense increased for the third quarter and first three quarters primarily due to increased transaction costs as well as consulting and professional services costs.
Previous wording
Total amortization expense of purchased intangibles slightly increased for the second quarter and first two quarters primarily due to the addition of intangible assets from acquisitions.
Current wording
Total amortization expense of purchased intangibles remained steady for the third quarter, with a slight increase for the first three quarters primarily due to the addition of intangible assets from the Document Crunch acquisition.
Previous wording
The following table shows non-operating (expense) income, net for the periods indicated:
Current wording
The following table shows non-operating expense, net for the periods indicated:
Previous wording
Non-operating expense, net increased for the second quarter and first two quarters primarily due to the goodwill impairment related to the T&L reporting unit, which was impacted by heightened macroeconomic uncertainty and reduced market multiples for software businesses.
Current wording
Non-operating expense, net increased for the first three quarters primarily due to the goodwill impairment related to the T&L reporting unit, which was impacted by heightened macroeconomic uncertainty and reduced market multiples for software businesses.
Previous wording
For the second quarter of 2026, our effective income tax rate was (6.0)%, as compared to 21.3% in the corresponding period in 2025. For the first two quarters of 2026, our effective income tax rate was (18.9)%, as compared to 21.9% in the prior year. The negative effective income tax rates were due to an income tax expense against a pre-tax loss that primarily resulted from a non-deductible goodwill impairment recognized during the second quarter of 2026.
Current wording
For the first three quarters, our effective income tax rate was (63.2)%, as compared to 17.7% in the prior year. The negative effective income tax rate was due to an income tax expense, including the additional one-time tax charge described above, against a pre-tax loss that primarily resulted from a non-deductible goodwill impairment recognized during the second quarter of 2026.
Previous wording
The following table is a reconciliation of our consolidated segment operating income to consolidated income before taxes:
Current wording
The following table is a reconciliation of our consolidated segment operating income to consolidated income (loss) before taxes:
Previous wording
Organic revenue increased for the second quarter and first two quarters due to strong demand for subscription offerings. Revenue growth benefited from cumulative growth along with an expansion of customers across many products, with the largest impacts resulting from Construction Management Systems, Architecture & Design, and Mechanical, Electrical, and Plumbing Solutions (“MEP”).
Current wording
Organic revenue increased for the third quarter and first three quarters due to strong demand for subscription offerings. Revenue growth benefited from cumulative growth along with an expansion of customers across many products, with the largest impacts resulting from Construction Management Systems, Architecture & Design, and Mechanical, Electrical, and Plumbing Solutions (“MEP”).
Previous wording
Operating income and operating income as a percentage of revenue increased for the second quarter and first two quarters primarily due to organic revenue and gross margin expansion.
Current wording
Operating income and operating income as a percentage of revenue increased for the third quarter and first three quarters primarily due to organic revenue and gross margin expansion.
Previous wording
Organic revenue increased for the second quarter and first two quarters primarily driven by hardware sales growth in Civil Construction and Surveying solutions due to strong end-user demand and competitive wins, and to a lesser extent, term license growth.
Current wording
Organic revenue increased for the third quarter and first three quarters primarily driven by hardware sales growth in civil construction and geospatial solutions due to strong end-user demand and competitive wins, and to a lesser extent, term license growth in the first three quarters.
Previous wording
Organic revenue increased for the second quarter and first two quarters primarily driven by subscription revenue growth from Transporeon.
Current wording
Organic revenue increased for the third quarter and first three quarters primarily driven by consumption and subscription revenue growth led by Transporeon and Enterprise.
Previous wording
Operating income and operating income as a percentage of revenue increased for the second quarter and first two quarters primarily due to organic revenue growth and gross margin expansion. Operating income as a percentage of revenue for the first two quarters was favorably impacted by the divestiture of lower operating income margin business.
Current wording
Operating income and operating income as a percentage of revenue increased for the third quarter and first three quarters primarily due to organic revenue growth and gross margin expansion. Operating income as a percentage of revenue for the first three quarters was favorably impacted by the divestiture of lower operating income margin businesses.
Previous wording
The increase in cash provided by operating activities was primarily driven by lower cash taxes paid and higher operating income.
Current wording
The increase in cash provided by operating activities was primarily driven by a reduction in cash taxes paid and higher operating income.
Previous wording
The decrease in cash used in financing activities was primarily driven by lower cash paid for repurchases of common stock compared to the prior year.
Current wording
The decrease in cash used in financing activities was primarily driven by lower cash paid for repurchases of common stock compared to the prior year, and higher net loan borrowings.
Previous wording
In December 2025, we entered into the 2025 Credit Facility, which replaced the 2022 Credit Facility. The 2025 Credit Facility contains an option to increase the borrowing from $1.25 billion up to $1.75 billion with lender approval. In April 2026, we borrowed $250.0 million from our credit facilities to finance the acquisition of Document Crunch (see Note 9, Debt). As of July 3, 2026, $66.4 million was outstanding under our credit facilities.
Current wording
In December 2025, we entered into the 2025 Credit Facility, which replaced the 2022 Credit Facility. The 2025 Credit Facility contains an option to increase the borrowing from $1.25 billion up to $1.75 billion with lender approval (see Note 9, Debt).As of October 2, 2026, $140.2 million was outstanding under our 2025 Credit Facility and other uncommitted credit facilities.
Previous wording
We define Non-GAAP net income as GAAP net (loss) income, 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.
Current wording
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.
Previous wording
We define Non-GAAP diluted net income per share as GAAP diluted net (loss) income 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.
Current wording
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.
Previous wording
(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, 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.
Current wording
(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.