TRIMBLE INC. (TRMB) Q3 2026 Earnings Summary

Executive Summary

Q3 FY2026 (quarter ended Oct 3, 2025) delivered revenue of $901.2M (+3% YoY; +2.9% QoQ), non‑GAAP EPS of $0.81 (+16% YoY), record Q3 non‑GAAP gross margin (71.2%) and record ARR of $2.31B; management said results exceeded internal expectations and raised full‑year guidance .
Versus S&P Global consensus, Q3 missed on revenue and EPS: $901.2M actual vs $980.6M consensus and $0.81 non‑GAAP EPS vs $0.887 consensus (7 and 6 estimates, respectively)*. Company beat its own Q3 outlook range ($850–$890M revenue; $0.67–$0.75 non‑GAAP EPS) and raised FY25 guidance, which likely drove a positive narrative despite the Street miss .
Segment performance: AECO and Field Systems grew double‑digit and high‑single‑digit, respectively (AECO revenue +17% YoY; Field Systems +9% YoY), while T&L declined YoY due to the Mobility divestiture; margins expanded across segments YoY .
Guidance raised: FY25 revenue to $3.545–$3.585B and non‑GAAP EPS to $3.04–$3.12; Q4 revenue guided to $927–$967M and non‑GAAP EPS to $0.91–$0.99 .
Strategic tone: management emphasized Connect & Scale execution, subscription mix (63% recurring in Q3), continued AI deployment, and reiterated 2027 “3‑4‑30” targets; early view for 2026 revenue growth “mid‑ to high‑single digits” was previewed on the call .

What Went Well and What Went Wrong

What Went Well

Record ARR ($2.31B, +6% YoY; +14% organic) and record Q3 non‑GAAP gross margin (71.2%); adjusted EBITDA margin expanded to 29.9% (+280 bps YoY) .
AECO and Field Systems strength: AECO revenue up 17% YoY with 31.8% operating margin; Field Systems revenue up 9% YoY with 33.4% operating margin; both segments benefited from higher recurring mix and workflow bundling (TC1) .
CEO tone on execution: “results surpassing both top and bottom line expectations... raising our full year 2025 guidance,” underscoring momentum in Connect & Scale strategy .

What Went Wrong

Street miss on headline consensus despite guidance beat: revenue $901.2M vs $980.6M consensus and non‑GAAP EPS $0.81 vs $0.887 consensus*; likely a mismatch between fiscal period definitions and/or normalization, but S&P data implies a miss [GetEstimates].
T&L revenue down 31% YoY due to Mobility divestiture; though margins improved to 25.8%, top‑line comparison remains a drag .
Continued disclosure controls/material weaknesses remediation in progress; management notes controls not yet effective as of Q3 FY2026, requiring continued investment and focus .

Financial Results

Headline metrics vs prior periods and consensus

Metric	Q3 2024	Q2 2025	Q3 2025 (Q3 FY2026)	S&P Consensus (Q3 FY2026)*
Revenue ($M)	$875.8	$875.7	$901.2	$980.6*
Non‑GAAP Diluted EPS ($)	$0.70	$0.71	$0.81	$0.887*
GAAP Diluted EPS ($)	$0.16	$0.37	$0.46	—
Non‑GAAP Gross Margin (%)	68.5%	70.6%	71.2%	—
Adjusted EBITDA Margin (%)	27.1%	27.4%	29.9%	—
ARR ($B)	$2.187	$2.21	$2.31	—

*Values retrieved from S&P Global.

YoY: Revenue +2.9%, non‑GAAP EPS +15.7%, non‑GAAP gross margin +270 bps; Adjusted EBITDA margin +280 bps .
QoQ: Revenue +2.9%, non‑GAAP EPS +14%, non‑GAAP gross margin +60 bps; Adjusted EBITDA margin +250 bps .

Segment breakdown (Q3 FY2026 vs Q3 FY2025)

Segment	Revenue Q3 2024 ($M)	Revenue Q3 2025 ($M)	YoY	Operating Margin Q3 2024	Operating Margin Q3 2025
AECO	$306.0	$358.5	+17.2%	29.1%	31.8%
Field Systems	$374.6	$408.7	+9.1%	33.0%	33.4%
Transportation & Logistics	$195.2	$134.0	−31.4%	21.0%	25.8%

Geography Q3 FY2026 revenue: North America $528.6M; Europe $247.6M; APAC $86.6M; RoW $38.4M .

KPIs and cash/returns

KPI	Q3 FY2026	Notes
Recurring revenue % of total	63%	Q3 commentary
Software & services % of total	78%	Q3 commentary
Free Cash Flow (YTD, $M)	$206.2	First three quarters
Share repurchases (YTD, $M)	$727.4	Through Q3
Net leverage (Debt/EBITDA proxy)	~1.2x	CFO commentary
GAAP gross margin (%)	68.9%	Q3
Non‑GAAP operating margin (%)	28.2%	Q3

Non‑GAAP adjustments drivers include amortization of intangibles, stock‑based/deferred comp, acquisition/divestiture items, and restructuring costs; Q3 non‑GAAP operating income was $254.2M (28.2% margin) vs GAAP operating income $150.5M (16.7%) .

Guidance Changes

Metric	Period	Previous Guidance (Q2 PR)	Current Guidance (Q3 PR)	Change
Revenue ($B)	FY 2025	$3.480–$3.560	$3.545–$3.585	Raised
GAAP EPS ($)	FY 2025	$1.55–$1.70	$1.69–$1.77	Raised
Non‑GAAP EPS ($)	FY 2025	$2.90–$3.06	$3.04–$3.12	Raised
Revenue ($M)	Q4 2025	—	$927–$967	New
GAAP EPS ($)	Q4 2025	—	$0.59–$0.67	New
Non‑GAAP EPS ($)	Q4 2025	—	$0.91–$0.99	New
GAAP tax rate	FY/Q4 2025	21% FY	17.8% FY; 18.0% Q4	Updated
Non‑GAAP tax rate	FY/Q4 2025	17.4% FY	17.4% FY; 17.5% Q4	Maintained/updated
Shares (MM)	FY/Q4 2025	~242	~242 FY; ~240 Q4	Updated
Organic ARR growth (midpoint)	FY 2025	14% (maintained)	14% (maintained)	Maintained

Full‑year guidance continues to reflect the Mobility divestiture closed Feb 8, 2025 .

Earnings Call Themes & Trends

Topic	Q1 2025 (May)	Q2 2025 (Aug)	Q3 2025 (Nov)	Trend
AI/Technology initiatives	Internal AI training, external features (NLP design, point‑cloud feature extraction, autonomous procurement)	Continued AI across products; internal efficiency; industry data moat emphasized	AI embedded in workflows (point cloud classification, inspection); customers early but rising interest	Accelerating deployment
Supply chain/Tariffs	~$10M/quarter tariff COGS impact in Field Systems; 4% surcharge offset; limited China exposure	No change; surcharges offset; OBBBA repeal of Sec.174 cash flow benefit	No major update; cautious macro framing	Managed/neutral
Government/Regulatory	Federal exposure small (single‑digit $MM in guide)	Public sector softness noted	Shutdown impact contained to single‑digit $MM in H2; FedRAMP as security posture investment	Contained
Segment performance	AECO ARR +19%; Field Systems ARR +25%	AECO +16%; Field Systems ARR +17%, 200 bps conversion headwind	AECO ARR $1.42B; Field Systems ARR +18%, ~150 bps conversion headwind	Durable growth
T&L/Market	Freight recession persists; bookings outlook solid	T&L revenue/ARR +8%; margin uplift expected	ARR ~$501M +7%; Freight Marketplace launch; limited macro green shoots	Stable despite macro
Internal controls	—	—	Controls not yet effective; remediation ongoing	In progress

Management Commentary

Strategy and momentum: “delivering a record level of annualized recurring revenue of $2.31 billion… raising our full year 2025 guidance” — Rob Painter, CEO .
Capital allocation and leverage: “repurchased $50M in Q3… leverage ratio of 1.2x… well below long‑term target of 2.5x” — CFO .
2027 targets and 2026 preview: Reiterated 3‑4‑30 (ARR $3B, revenue $4B, 30% EBITDA) by FY2027; early view for 2026 revenue growth “mid to high single‑digit” (details to come in February) .
AI moat and productization: Management emphasized unique “trillions, billions, millions, thousands” data corpus and active AI features across portfolios (e.g., automated point‑cloud classification, autonomous procurement) .
Government shutdown and FedRAMP: Impact “single digit millions” in back half; FedRAMP as part of broader security posture; no 2026 FedRAMP revenue planned .

Q&A Highlights

Guidance mechanics and 2026 setup: Management investing in marketing and systems to seed 2026 bookings; maintaining organic ARR growth midpoint at 14% for 2025; early 2026 revenue view mid‑ to high‑single digits .
Field Systems conversion: Ongoing model conversions expected through 2027; ~150–200 bps growth headwinds but ARR growth remains strong .
T&L macro: No “meaningful green shoots” expected into 2026; execution and cross‑sell within ~$400M opportunity remain primary levers .
Federal exposure: Minimal in guide; DoD opportunities stronger than civilian; budgeting uncertainty remains a watch item .
SketchUp pricing and SMB strength: Pricing optimization aimed at annualization; SketchUp as lead‑gen link to reality capture; SMB demand healthy with TC1 bundles aiding cross‑sell .

Estimates Context

S&P Global consensus for Q3 FY2026: Revenue $980.6M; Primary EPS $0.887 (7 EPS, 6 revenue estimates)*. Actuals: revenue $901.2M; non‑GAAP EPS $0.81; GAAP EPS $0.46 — implying headline misses vs these consensus figures despite beating company guidance .
Directional implications: Street models may recalibrate to stronger margin trajectory (71.2% non‑GAAP GM, 29.9% Adj. EBITDA) and raised FY guide, while trimming near‑term top‑line trajectories in T&L; AECO and Field Systems mix shift should support higher out‑year profitability baselines .