Trimble (TRMB) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $940M, up 12% YoY, with ARR of $2.44B (up 13% YoY), and EPS of $0.79, exceeding guidance and driven by recurring revenue and Field Systems strength.

• Raised full-year 2026 guidance for revenue, EPS, and ARR growth, reflecting confidence in continued momentum.

• Continued execution of Connect & Scale strategy, leveraging AI to drive productivity, expand addressable markets, and enhance recurring revenue.

• Monetization of AI through hybrid models, including licenses and consumption-based offerings, is gaining traction.

• Completed acquisition of Document Crunch, an AI platform for construction document analysis, for $250M post-quarter.

Financial highlights

• Organic revenue growth of 12% YoY, with recurring revenue accounting for 78% of total revenue and strong performance in North America and Europe.

• Gross margin expanded to 71% (non-GAAP), EBITDA margin reached 27.4%, and operating income margin rose to 25.9% (+170 bps YoY).

• Free cash flow was $275M; cash balance at $234M; leverage ratio at 1.1x, well below target.

• Repurchased $317M of common stock in Q1; $608M remains under current authorization.

• Adjusted EBITDA was $257.7M (27.4% margin), and operating cash flow was $274.7M.

Outlook and guidance

• FY2026 revenue guidance midpoint raised to $3.875B (+8% YoY), non-GAAP EPS to $3.55, ARR growth at 13%, and EBITDA margin at 29.7%.

• Q2 2026 guidance: revenue $950M (+7.5% YoY), EPS $0.80, ARR growth 13%, EBITDA margin 27.7%.

• On track to meet 2027 targets: $3B ARR, $4B revenue, 30% EBITDA margin.

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

• Cash and borrowing capacity deemed sufficient for operating needs, debt service, acquisitions, and stock repurchases.