TRMB · Trimble Inc.

Trimble Inc. delivered strong Q1 2026 results, with revenue rising 12% year-over-year to $939.9 million on both reported and organic bases, fueled by record annualized recurring revenue of $2.43 billion, also up 12% organically. This reflects successful execution of the Connect & Scale strategy, emphasizing subscriptions and services which comprised $628.7 million of revenue. Gross margins expanded to a record 68.8% GAAP (71.0% non-GAAP), driven by favorable product mix and operational efficiencies, while operating margins reached 15.3% GAAP and 25.9% non-GAAP. GAAP net income of $98.9 million and non-GAAP $186.9 million translated to diluted EPS of $0.42 and $0.79, respectively, surpassing expectations. CEO Rob Painter highlighted momentum in connecting people, data, workflows, and ecosystems in an AI-forward world. The company returned capital aggressively, repurchasing $316.9 million in shares (4.7 million shares), reducing shares outstanding. Balance sheet remains solid with $234.1 million in cash despite buybacks, and net debt stable around $1.4 billion long-term. Segment performance was robust: AECO up to 31.5% operating margin, Field Systems 28.8%, T&L 24.2%. Guidance raised for full-year 2026 revenue to $3.835-$3.915 billion and non-GAAP EPS $3.47-$3.64, signaling confidence amid macroeconomic challenges. Q2 outlook steady at $938-$963 million revenue. Adjusted EBITDA hit record 27.4% margin, with free cash flow of $268.6 million supporting returns.