Trimble Inc. reported stronger-than-expected first-quarter earnings on Wednesday, driven by double-digit revenue growth in its transportation and construction software businesses. The company's software and industrial tech giant posted $939.9 million in revenue, up 12% year over year, while adjusted earnings per share came in at 79 cents.
Adjusted EBITDA totaled $257.7 million, representing 27.4% of revenue, a significant increase from the previous quarter. This growth is largely attributed to the expanding margins and continued momentum in Trimble's transportation and construction software businesses.
The company also raised its full-year 2026 guidance, citing strong recurring revenue growth and improving visibility into customer demand. The new projections expect full-year revenue between $3.835 billion and $3.915 billion, with non-GAAP EPS projected between $3.47 and $3.64.
Trimble's transportation business is seeing improving momentum despite lingering softness in freight markets. However, the company remains optimistic about the North American market's signs of recovery.
The segment's annual recurring revenue increased 9% to $525 million, while operating margins expanded 300 basis points to 24.2%. This growth demonstrates Trimble's ability to adapt to changing market conditions and capitalize on emerging trends in transportation technology.
CEO Rob Painter highlighted the accelerating adoption of AI-enabled freight technologies within the transportation segment. The company is building momentum with recent customer wins in autonomous procurement and autonomous quotation in North America.
The use of AI-driven transaction tools is generating stronger monetization rates than traditional software features in transportation, according to Painter. This trend suggests that companies like Trimble are well-positioned to capitalize on the growing demand for intelligent transportation solutions.
Trimble sees AI as a way to expand its addressable market across transportation and construction workflows. The company believes that AI can help it tap into new revenue streams and improve its competitive position in the industry.
As the transportation sector continues to evolve, companies like Trimble are poised to play a key role in shaping the future of logistics and supply chain management.
AI tools are fueling growth in the transportation sector, with companies like Trimble seeing improved margins and expanding their addressable market.
