Trimble Inc
NASDAQ:TRMB
Trimble Inc
In the expansive realm of geospatial technologies, Trimble Inc. stands as a dynamic force, transforming how industries perceive and interact with the physical world. Founded in 1978, the company initially carved its niche by advancing Global Positioning System (GPS) technology, a foresightful step that laid the groundwork for a diverse suite of offerings. Today, Trimble integrates complex inputs — from satellite systems and laser technology to software innovation — to develop solutions tailored for a multitude of sectors, including agriculture, construction, transportation, and utilities. By enhancing precision and efficiency, Trimble's technology allows businesses to optimize operations and improve productivity. This ability to bridge the digital and physical realms through data-driven insights fuels Trimble's ongoing influence across its chosen sectors.
Trimble earns its revenue primarily through the sale of hardware, software, and services, amalgamating them into comprehensive solutions. The company's hardware, which includes a range of GPS devices, advanced field controllers, and sensor-equipped instruments, serves as the backbone of its offerings. Meanwhile, its proprietary software solutions enable the seamless integration of these hardware products into clients' existing processes, thus driving user engagement and software subscriptions — a model that produces recurring revenue streams. Additionally, Trimble offers consulting and support services, ensuring clients maximize their investment in technology. This holistic business approach not only solidifies client relationships but also fortifies Trimble's market presence, effectively linking technological capability with sustainable financial growth.
In the expansive realm of geospatial technologies, Trimble Inc. stands as a dynamic force, transforming how industries perceive and interact with the physical world. Founded in 1978, the company initially carved its niche by advancing Global Positioning System (GPS) technology, a foresightful step that laid the groundwork for a diverse suite of offerings. Today, Trimble integrates complex inputs — from satellite systems and laser technology to software innovation — to develop solutions tailored for a multitude of sectors, including agriculture, construction, transportation, and utilities. By enhancing precision and efficiency, Trimble's technology allows businesses to optimize operations and improve productivity. This ability to bridge the digital and physical realms through data-driven insights fuels Trimble's ongoing influence across its chosen sectors.
Trimble earns its revenue primarily through the sale of hardware, software, and services, amalgamating them into comprehensive solutions. The company's hardware, which includes a range of GPS devices, advanced field controllers, and sensor-equipped instruments, serves as the backbone of its offerings. Meanwhile, its proprietary software solutions enable the seamless integration of these hardware products into clients' existing processes, thus driving user engagement and software subscriptions — a model that produces recurring revenue streams. Additionally, Trimble offers consulting and support services, ensuring clients maximize their investment in technology. This holistic business approach not only solidifies client relationships but also fortifies Trimble's market presence, effectively linking technological capability with sustainable financial growth.
Revenue Beat: Trimble delivered fourth-quarter revenue of $970 million, up 9%, exceeding expectations and closing out a strong year.
ARR Growth: Annual recurring revenue (ARR) reached a record $2.39 billion, up 14% year-over-year, driven by 16% growth in AECO and 20% in Field Systems.
EPS Outperformance: Q4 earnings per share landed at $1.00, up 12% year-over-year and $0.05 above the midpoint of guidance.
Margin Expansion: Gross margin expanded to 74.6% in Q4, with EBITDA margin at 33.5%; both improved year-over-year.
2026 Guidance: For 2026, Trimble guided to $3.86 billion in revenue (~7.5% growth), $3.52 EPS, 13% ARR growth, and continued EBITDA margin expansion.
AI Progress: Management emphasized rapid rollout and customer adoption of AI/Agentic AI features in 2026 across all business lines, with meaningful customer productivity gains already observed.
Capital Allocation: The company repurchased $148 million of shares in Q4 and expects at least one-third of free cash flow to go to buybacks longer-term.
Cross-Sell Momentum: Over 70% of AECO’s ACV bookings came from existing customers, highlighting successful upsell and cross-sell efforts.
