Trimble Inc. (Nasdaq: TRMB) reported second-quarter 2026 revenue of $972 million, an 11% increase from the prior-year period. The Westminster, Colorado-based technology company also disclosed a record $2.51 billion in annualized recurring revenue and raised its full-year guidance.
The results come as Trimble continues a multi-year transition toward subscription-based revenue. The company provides positioning, modeling, and data analytics tools to industries including construction, geospatial surveying, and transportation. It competes with Hexagon AB and Topcon in precision measurement hardware and software, while its fleet and logistics operations overlap with companies such as Samsara and Platform Science.
#Recurring Revenue Hits Record as Subscriptions Drive Growth
Annualized recurring revenue reached $2.51 billion, up 14% year over year and 12% on an organic basis. Subscription and services revenue accounted for $640.6 million of the quarter's total, compared with $582.9 million a year earlier.
Product revenue was $331.4 million, up from $292.8 million in the second quarter of 2025.
Gross margin expanded to 69.4% on a GAAP basis from 68.3% a year earlier. Non-GAAP gross margin was 71.8%, compared with 70.6% in the prior-year quarter.
Non-GAAP operating income rose to $260.6 million, or 26.8% of revenue, from $222.6 million a year ago. Non-GAAP diluted earnings per share were $0.86, up from $0.71 in the second quarter of 2025.
#Goodwill Impairment Drives GAAP Net Loss
Trimble recorded a $562 million goodwill impairment charge related to its Transportation and Logistics segment. The company attributed the impairment to a sustained decline in market capitalization and lower market multiples for software businesses amid macroeconomic uncertainty.
The charge resulted in a GAAP net loss of $471.7 million, or $2.02 per diluted share, compared with GAAP net income of $89.2 million, or $0.37 per share, a year earlier.
GAAP operating income was $132 million, roughly in line with the $127.8 million reported in the prior-year period. Adjusted EBITDA was $278 million, or 28.6% of revenue.
"We delivered another strong quarter, increasing annualized recurring revenue to a record $2.509 billion, with strong recurring revenue growth across all segments," Rob Painter, President and CEO of Trimble, said in the earnings release.
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#All Three Segments Report Revenue and Margin Gains
Field Systems was the largest segment by revenue at $442.5 million, up from $392.7 million a year ago. Operating margin expanded to 32.9% from 30.8%.
The AECO segment reported revenue of $388.5 million, up from $350.3 million, with an operating margin of 30.6%.
Transportation and Logistics generated $141 million in revenue, compared with $132.7 million in the prior-year quarter. Operating margin widened to 24% from 21.6%.
#Trimble Raises Full-Year Guidance and Approves $1 Billion Buyback
For the full year, Trimble said it expects revenue of $3.9 billion to $3.95 billion and non-GAAP diluted earnings per share of $3.60 to $3.70.
For the third quarter, the company projected revenue of $953 million to $978 million and non-GAAP diluted earnings per share of $0.83 to $0.88.
The board of directors approved a new share repurchase authorization of up to $1 billion, replacing a prior program of the same size that had $608.2 million remaining. The new authorization has no expiration date, and the timing and volume of any repurchases will depend on market conditions, stock price, and other factors, the company said.
Free cash flow for the first half of 2026 was $501.8 million, compared with $89.6 million in the same period a year earlier.
Management projected further revenue and earnings growth for the remainder of the year, though trade tensions, macroeconomic conditions, foreign currency fluctuations, and the pace of the company's subscription transition remain key risks to the outlook.