Trimble Inc.

Trimble reported second-quarter revenue of $972 million, up 10% organic, above the high end of guidance. Gross margin expanded 120 basis points to 71.8%, EBITDA margin was 28.6% (up 120 basis points), and reported EPS was $0.86, $0.06 above the midpoint and above the high end of guidance. Segment results included AECO revenue of $389 million (+9%) with ARR of $1.577 billion (+14%), Field Systems revenue of $442 million (+12%) with ARR of $399 million (+12%), and Transportation & Logistics revenue of $141 million (+5%) with ARR of $533 million (+7%). Full-year 2026 guidance was raised by $50 million to $3.925 billion of revenue and by $0.10 to $3.65 of EPS; EBITDA margin is now expected at approximately 30%, and Q3 midpoint guidance was set at $965 million revenue, $0.85 EPS, and 28.6% EBITDA margin. Free cash flow was $502 million through the first two quarters, cash was $214 million, leverage was 1.1x, and the company expects free cash flow to be about 0.9x non-GAAP net income this year.

Rob Painter framed the quarter as evidence that Trimble’s Connect & Scale strategy and AI transformation are compounding value across the business. He emphasized broad macro strength in data centers, energy, reshoring and infrastructure, and described Trimble Connect as the core platform linking office and field workflows across construction. His tone was confident and upbeat, especially around AI-enabled productivity, customer adoption, and the company’s ability to build more capabilities in-house.

Phil Sawarynski emphasized the quality of the quarter’s financial execution: revenue of $972 million, organic growth of 10%, gross margin of 71.8%, EBITDA margin of 28.6%, and EPS of $0.86. He noted $502 million of free cash flow in the first half, $214 million of cash, and 1.1x leverage, and highlighted the new $1 billion buyback authorization alongside nearly $1.2 billion of repurchases since the start of 2025. On outlook, he raised full-year revenue to $3.925 billion, EPS to $3.65, and EBITDA margin to about 30%, while saying free cash flow should be about 0.9x non-GAAP net income because of incremental restructuring and other one-time costs. He also explained that the Field Systems ARR guide was lowered because the company is replacing a white-label product with an internally developed, higher-margin solution, creating a temporary headwind of about 400 to 500 basis points to Field Systems ARR.

Analysts focused on the Field Systems ARR reduction, and management explained it was a deliberate move from a low-margin white-label service to a proprietary product that should improve margins over time, with Phil estimating the impact at about $16 million to $20 million of ARR this year. Several questions pressed on the Transportation & Logistics strategic review; Rob Painter said inbound interest was recent, there is no predetermined outcome or timeline, and the board will evaluate options through the lens of shareholder value while staying focused on execution. Other questions covered AI monetization, where management said it is already monetizing through standalone and hybrid license/consumption models, but the near-term priority is adoption, telemetry and workflow engagement before broader pricing and packaging changes. Analysts also asked about data-center and Trimble Connect momentum, and management said the platform is seeing strong usage, with over 1 million projects added in the quarter and more than 3.7 million monthly active users across construction solutions.