Trimble (TRMB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $972 million, up 11% year-over-year and 10% organically, with both revenue and earnings surpassing guidance and prompting an increase in full-year outlook.

• Achieved record annualized recurring revenue (ARR) of $2.51 billion, up 14% year-over-year, with strong growth across all segments.

• Announced a new $1 billion share repurchase authorization, reinforcing capital allocation strategy.

• AI transformation and integration of connected workflows are accelerating productivity and operational efficiency.

• Completed the acquisition of Document Crunch, an AI platform for construction document analysis, for $246.4 million.

Financial highlights

• Q2 2026 revenue: $972 million (up 11% year-over-year); ARR up 14% to $2.51 billion, with organic ARR growth of 12%.

• Non-GAAP gross margin reached 71.8% (+120 bps YoY); GAAP gross margin was 69.4%.

• Adjusted EBITDA margin was 28.6%, up 120 bps year-over-year.

• Non-GAAP EPS was $0.86, up 21% year-over-year and above guidance; GAAP diluted EPS was $(2.02) due to a $562 million goodwill impairment.

• Free cash flow for the first half was $502 million; cash and cash equivalents at quarter-end were $214.4 million; leverage ratio at 1.1x.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $3.90–$3.95 billion, with organic growth of 8–10%.

• Full-year non-GAAP EPS expected at $3.60 to $3.70; GAAP loss per share forecasted at $(0.07) to $(0.12).

• Q3 2026 revenue guidance: $953 million to $978 million; non-GAAP EPS $0.83–$0.88.

• OBBBA tax reform expected to reduce 2026 cash taxes by $53 million.

• Free cash flow guidance reduced due to incremental restructuring and one-time costs.