Trimble Inc.

The third-quarter comparison

Quarters ended October 2, 2026 and October 3, 2025. Dollar amounts in millions. Revenue, net income and income-tax expense are GAAP; adjusted net income is non-GAAP.

Measure	2026	2025
Revenue	$966.8	$901.2
Net income	$59.1	$111.5
Income-tax expense	$62.2	$13.6
Adjusted net income	$200.5	$194.7

Adjusted earnings exclude purchased-intangible amortization, acquisition items, stock compensation, restructuring, goodwill impairment and net tax adjustments. The $107.6 million uncertain-tax-position reserve is a gross accounting item, distinct from total quarterly tax expense and the net adjustment used for adjusted earnings.

The annual forecast

Trimble reduced its 2026 organic annualized recurring-revenue growth forecast to about 10%, from 12% to 14%. It cited weaker-than-expected growth in Field Systems and Transportation & Logistics. Third-quarter organic recurring-revenue growth was 13% in its architecture, engineering and construction software business and 5% in each of the other two businesses.

Trimble expects annual revenue of $3.910 billion to $3.940 billion, compared with $3.900 billion to $3.950 billion previously. Adjusted EPS is forecast at $3.63 to $3.69, while the reported loss forecast is 49 to 55 cents a share.

The company expects annual free cash flow of about 90% of adjusted net income.

The new tax reserve relates to an internal restructuring. The annual reported result also includes the second-quarter $562 million goodwill impairment. The current tax note does not provide a settlement timetable for the uncertain position.

Acquisitions, cash and borrowing

Trimble completed its acquisition of construction-document software business Document Crunch on April 4 for $246.4 million in cash.

Operating cash flow for the first three quarters was $664.7 million. Capital spending of $21.1 million left $643.6 million of free cash flow. Cash income taxes were $55.7 million, down from $392.2 million a year earlier. Cash spent on share repurchases was $552.9 million.

At October 2, cash and cash equivalents were $214.5 million. Short-term debt was $90.2 million and long-term debt $1.443 billion.

On October 2, Trimble entered into a separate $500 million delayed-draw term loan facility. Nothing had been drawn at that date, so the facility was borrowing capacity rather than part of the cash balance.

A calendar effect in fiscal 2027

Neither January 1, 2027 nor January 1, 2028 falls within Trimble's fiscal 2027. The company expects that calendar effect to reduce revenue and operating income by about $90 million each, while leaving annualized recurring revenue and free cash flow unaffected.

Read our analysis of Trimble's earnings and recurring-revenue forecasts.