Trimble reported higher third-quarter revenue and earnings Wednesday, but lowered its full-year recurring revenue growth forecast as weakness in European freight markets and slower demand for positioning services weighed on its outlook.
The Westminster, Colorado-based technology company (NASDAQ: TRMB) reported third-quarter revenue of $967 million, up 7% year over year, while adjusted earnings per share reached 86 cents.
The results met Wall Street expectations, with the average estimate of four analysts surveyed by Zacks Investment Research was for revenue of $965.9 million and earnings of 86 cents per share, according to the Associated Press.
Annual recurring revenue (ARR) increased 10% to a record $2.564 billion, although growth fell modestly below management’s expectations.
Trimble maintained the midpoint of its full-year revenue forecast at $3.925 billion and slightly raised its adjusted earnings outlook. However, the company reduced its expected ARR growth to approximately 10%, down from its previous forecast of 12% to 14%.
CEO Rob Painter said Trimble’s performance reflected resilience despite a challenging supply chain environment and softer European demand, partially offset by strength in the U.S.
The company’s transportation and logistics business, which provides software for carriers, freight brokers and shippers, reported third-quarter revenue growth of 2% and ARR growth of 5%.
Operating margin in the segment increased 50 basis points to 26.3%.
European freight conditions pressure transportation growth
Painter said the European transportation market remained mixed, with freight volumes and spot pricing conditions weighing on the company’s recurring revenue performance.
Trimble’s Transporeon freight technology platform continued to demonstrate strong customer retention, with gross retention approaching 100% and ARR growth of approximately 9%.
However, lower freight volumes and a less favorable spot pricing mix compared with earlier in the year limited growth.
“In transportation and logistics, ARR growth was slightly below our first half, where the European freight market remains somewhat mixed,” Painter said during the earnings call.
The company also cited broader economic weakness in Europe, including inflationary pressures associated with the continuing conflict in the Middle East.
Painter said higher diesel prices presented both challenges and opportunities for the transportation business, as carriers and shippers increasingly seek technology to manage operating costs.
For the full year, Trimble expects transportation and logistics revenue and ARR to grow at mid-single-digit rates, while raising its operating margin expectation for the segment to 25%.
AI-powered freight procurement gains momentum
Despite slower overall transportation growth, Trimble reported increasing adoption of artificial intelligence across its freight technology platforms.
Painter said revenue from the company’s autonomous freight procurement and quotation solutions increased more than 20% year to date.
The technology automates processes including spot-market carrier selection, freight quoting and rate negotiation.
Strong bookings in the category are expected to support further revenue growth in 2027.
“If we look at transportation and autonomous procurement and autonomous quotation, those products have been in the market. We saw 20% growth year over year,” Painter said during the question-and-answer session.
He added that bookings were strong year to date, providing confidence in continued growth next year.
Trimble expands connected fleet and yard technology
Beyond AI-powered freight procurement, Trimble highlighted advances in routing, navigation and yard management technology.
The company’s PC*MILER web services platform processes more than 5.5 billion routing requests monthly.
Recent enhancements include advanced batch analytics and preferred-route settings that allow fleets to evaluate lane profitability and send optimized routes directly to drivers through the CoPilot navigation application.
Painter said the integration improves consistency between back-office planning and actual execution on the road, potentially increasing driver safety and operational efficiency.
Trimble also expanded its Dock and Yard platform, connecting appointment scheduling, carrier communications and yard management into a more integrated workflow.
The system provides facility operators with greater visibility into changing truck arrival times, helping them manage dock capacity and reduce delays.
Painter said reducing truck waiting times could allow customers to move the same freight volumes with fewer vehicles, improving asset utilization and helping address driver availability challenges.
Construction business drives overall growth
Trimble’s architecture, engineering, construction and operations (AECO) business remained the company’s largest growth engine.
The segment reported ARR growth of 13% to a record $1.636 billion, with revenue increasing 9% year over year.
Its operating margin expanded 170 basis points to 33.5%.
Field Systems reported 7% revenue growth and 5% ARR growth, supported by civil construction and geospatial demand.
However, weaker agricultural markets in South America, lower-than-expected positioning service subscription renewals and the planned exit from a low-margin third-party product line contributed to the company’s reduced ARR outlook.
Trimble also reported third-quarter adjusted EBITDA margin of 28.8% and free cash flow of $644 million through the first nine months of the year.
The company repurchased $224 million of its shares during the quarter.
For the fourth quarter, Trimble forecast revenue of approximately $1.046 billion and adjusted earnings of $1.16 per share at the midpoints of its guidance ranges.
Management expects full-year adjusted earnings per share of approximately $3.66, representing growth of about 17%.
Transportation business review remains unresolved
During the earnings call, analysts also questioned management about the ongoing strategic review of Trimble’s transportation business.
Painter reiterated that the company continues operating the business normally while evaluating its options.
“There’s no predetermined outcome or timeline as it relates to the review,” Painter said.
He emphasized that the transportation business continues to introduce products and deepen customer engagement despite uncertain freight market conditions.
The company also cautioned that its fiscal 2027 calendar will create an approximately $90 million headwind to reported revenue and operating income growth because of the timing of term-license renewals.
Trimble said the accounting-related calendar impact will not affect ARR or free cash flow.
Management expects to provide additional details on its 2027 outlook during the fourth-quarter earnings call in February.
Trimble Q3 2026 financial highlights
Year-over-year growth figures and margins reported by management; non-GAAP metrics unless otherwise indicated.
| Metric | Q3 2026 | YoY change |
|---|---|---|
| Total revenue | $967 million | +7% |
| Adjusted EPS | $0.86 | — |
| Annual recurring revenue | $2.564 billion | +10% |
| Gross margin | 70.5% | −70 bps |
| Adjusted EBITDA margin | 28.8% | — |
| AECO revenue | — | +9% |
| AECO ARR | $1.636 billion | +13% |
| Field Systems revenue | — | +7% |
| Field Systems ARR | — | +5% |
| Transportation and Logistics revenue | — | +2% |
| Transportation and Logistics ARR | — | +5% |
| Transportation and Logistics operating margin | 26.3% | +50 bps |
Why it matters: Trimble’s results illustrate how weak freight volumes and spot pricing can weigh on logistics technology providers even as carriers and shippers invest in automation to reduce costs.
