Trimble’s annualized recurring revenue reached a record $2.51 billion during the second quarter of 2026 as the technology company continued shifting its business toward subscription and services revenue and expanding connected workflows across construction, geospatial and transportation markets.
ARR increased 14% year-over-year and 12% organically. Total Q2 revenue increased 11% to $972 million, including 10% organic growth, as Trimble’s Connect & Scale strategy continued driving recurring revenue growth across all of its operating segments.
Subscription and services revenue reached $640.6 million, up approximately 10% from $582.9 million a year earlier, and represented roughly two-thirds of total quarterly revenue. Product revenue increased to $331.4 million from $292.8 million.
The company’s operating performance also strengthened. GAAP operating income reached $132 million, representing 13.6% of revenue, while non-GAAP operating income increased to $260.6 million and represented 26.8% of revenue. Adjusted EBITDA reached $278 million, or 28.6% of revenue.
Trimble’s individual operating segments showed broad-based profitability. Architecture, Engineering, Construction and Operations generated $388.5 million of Q2 revenue and a 30.6% operating margin. Field Systems generated $442.5 million of revenue with a 32.9% operating margin, while Transportation and Logistics produced $141 million of revenue and a 24% margin.
Transportation and Logistics improved operationally despite generating a significant accounting charge during the quarter. Segment revenue increased from $132.7 million and operating income rose to $33.9 million from $28.6 million, while its operating margin expanded from 21.6% to 24%.
However, Trimble recorded a $562 million goodwill impairment related to Transportation and Logistics, driving a GAAP net loss of $471.7 million, or $2.02 per share. The impairment was triggered by a sustained decline in Trimble’s market capitalization and stock price amid greater macroeconomic uncertainty and lower valuation multiples for software companies. Non-GAAP net income was $200.3 million, or $0.86 per diluted share.
Trimble also increased its capital return capacity. The board approved a new $1 billion share repurchase authorization with no expiration date, replacing the previous authorization, which had $608.2 million remaining at the end of Q2.
Following results that exceeded its expectations, Trimble raised its full-year outlook. The company now expects 2026 revenue between $3.9 billion and $3.95 billion and non-GAAP EPS between $3.60 and $3.70. Q3 revenue is expected between $953 million and $978 million, with non-GAAP EPS of $0.83 to $0.88.
Trimble sees artificial intelligence as another opportunity to build on its recurring revenue model by applying AI to increasingly connected data and workflows across its ecosystem.
KEY QUOTES:
“We delivered another strong quarter, increasing annualized recurring revenue to a record $2.509 billion, with strong recurring revenue growth across all segments.”
“Our Connect and Scale strategy is building momentum with increasingly connected data and workflows across our ecosystem. Trimble is well positioned to accelerate AI-enabled value for customers and shareholders.”
Rob Painter, President And CEO Of Trimble
