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.
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Ocean Network Express more than quadrupled its second-quarter net profit and raised its full-year earnings forecast to $2 billion, as stronger freight rates and higher cargo volumes outweighed rising operating costs.
The Singapore-based container shipping company co-owned by three Japanese carriers reported net profit of $1.318 billion for the July–September quarter, compared with $285 million a year earlier. Revenue rose about 41% to $6.27 billion from $4.45 billion. The period represents the second quarter of its fiscal year ending March 2027.
The carrier increased its annual net profit forecast from $900 million to $2 billion and lifted its revenue outlook from $19.4 billion to $21 billion. It was the company’s second profit-guidance upgrade this fiscal year, following an increase from $300 million to $900 million after its first-quarter results.
ONE carried 3.396 million twenty-foot equivalent units, or TEUs, during the quarter, up 6.3% year-on-year. Its average freight rate increased to $1,709 per TEU from $1,252, helping offset higher fuel, vessel and other operating expenses.
“The second quarter delivered a strong financial performance, contributing to a solid first half of FY2026,” Chief Executive Till Ole Barrelet said in the company’s earnings announcement. “These results reflect our teams’ success in growing cargo volumes and achieving higher utilization despite a challenging operating environment.”
First-half revenue reached $10.812 billion, while net profit totaled $1.35 billion, compared with $371 million a year earlier. The figures show that nearly all of the company’s first-half profit came in the second quarter.
Demand on trans-Pacific routes benefited from U.S. inventory replenishment and shipments of equipment for data centers and industrial applications. Latin American and intra-Asian services also recorded positive demand, while Asia–Europe routes faced greater pricing pressure as available capacity increased.
Despite the stronger earnings, ONE expects seasonal demand to moderate and spot freight rates to ease during the second half. It nevertheless anticipates rates remaining above the levels assumed in its previous forecast, with a modest increase ahead of Chinese New Year.
The outlook remains sensitive to shipping disruptions in the Middle East and changes in routing through the Suez Canal. The company’s revised forecast assumes current conditions in the Strait of Hormuz persist through the fiscal year-end and Suez transits recover gradually. A return of more services to the Suez route could increase available capacity and put further pressure on freight rates.
“Looking ahead, we will adapt our network in response to evolving conditions, with safety remaining our top priority,” Barrelet said.
Why it matters: Higher freight rates and cargo volumes drive a sharp earnings rebound for Ocean Network Express, the 10th-largest ocean carrier, a good sign for the broader liner industy.
Read more articles by Stuart Chirls here.
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A Boeing 747-400 freighter jet operated by Central China Longhao Airlines arrived at East Midlands Airport on Monday, adding to the roster of cargo airlines now using the airport as a gateway to the United Kingdom market.
Central China Longhao Airlines will operate twice-weekly flights to East Midlands from Zhengzhou International Airport, the airport said in a news release.
China Central Longhao Airlines was restructured and established by Henan Civil Aviation Development & Investment Group in 2019. As a state-owned airline and the main base airline in Henan Province, it played a key role in the construction of Zhengzhou international air cargo hub, and operates its fleet throughout Asia and into Europe.
China Central Longhao, which also calls itself Air Central, operates several smaller cargo jets within China, as well as two Boeing 747-400s. It says it plans to soon expand the fleet. International service currently connects Zhengzhou with Liege, Belgium; and Bengaluru, Chennai and Delhi, India. The U.S. Department of Transportation in March granted Air Central authority to operate flights to Chicago O’Hare and Los Angeles International Airport, but no operations to those destinations have started yet, according to flight tracking service Flightradar24.
East Midlands Airport, operated by the Manchester Airport Group, has a short-term goal of increasing cargo volume from a near-record 413,000 metric tons in 2025 to 500,000 metric tons by 2030, which would increase annual revenue by more than $11.2 million. Through September, cargo volume is up 5% year over year to nearly 211,000 metric tons. The airport recently advertised for a new head of cargo development.
East Midlands has attracted more flight activity from China in recent years, coinciding with the surge in B2C e-commerce orders. The airport’s central location, lack of congestion, fewer night flying restrictions and cargo–focused infrastructure has attracted more freighter operators since the Covid crisis. East Midlands — home to the main U.K. air hubs of DHL Express, UPS and FedEx — is also benefitting from capacity constraints at other airports.
In April, YunExpress opened a cargo terminal at the airport to handle its own package freight arriving on Central Airlines flights from China. Last November, SF Express began operating from Ezhou to East Midlands carrying e-commerce goods on behalf of a distributor. One Air, a startup freighter operated based in the United Kingdom, in September 2025 began scheduled service between Hong Kong and East Midlands, with a focus on carrying e-commerce and electronics from China onboard its Boeing 747-400 cargo jets.
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All the key numbers at Expeditors International pointed upward in the third quarter at the logistics and freight forwarding company.
Revenue year-on-year was up 42%, to $4.1 billion at the asset-light customs broker and freight forwarder.
Despite the fact that the cost of transportation rose 49%, a faster rate than revenues, and salaries climbed 15%, operating income rose 55% to $445.4 million, up from $288 million a year ago.
Diluted earnings per share were up 61% to $2.65 per share.
According to SeekingAlpha, that EPS figure beat consensus estimates by 42 cts/share, while the revenue of $4.11 billion was higher than consensus estimates by $510 million.
Stock doesn’t move higher
Despite topping those forecasts, Expeditors’ (NYSE: EXPD) stock in early trading showed little positive reaction. At approximately 9:50 a.m. EST, it was down 0.76%, or $1.52, to $199.04. The stock is trading at about a 28.9 P/E ratio for the trailing twelve months, which is considered slightly higher than the market as a whole.
But the company’s stock had a strong run for several months. Coming into Tuesday’s trading, Expeditors was up about 3.9% in the last month, 17.2% in the last three months and 63.3% in the last year, according to data from Barchart.
Volume picked up significantly for Expeditors as the quarter wore on. The year-over-year increase for airfreight was 8% in July, 13% in August and 19% in September, for an overall increase of 13%.
The growth rates in ocean freight were smaller but still ended up higher than they started. The July and August increase was 5%, with an increase in September of 12%. The overall increase in ocean freight was 12%.
More workers
Employee headcount rose slightly year-on-year. The total was 20,463, up from 20,170 a year ago, an increase of 1.4%. But there were declines in Global Technology–down to 1,151 from 1,483–and corporate, which dropped to 396 workers from 419.
Expeditors does not conduct an earnings call with analysts.
In the prepared statement released with the earnings, CEO Daniel Wall said Expeditors’ market share has been rising, “particularly in markets where we have made a strategic focus.”
Expeditors’ strong performance in the past 1.5 years has been attributed in part to its knowledge of tariffs and how they work, a strength that has been particularly valuable in times where such levies have been implemented and taken off in rapid succession.
“While we have thrived during periods of significant disruption throughout our history, the strength of demand for our products and services is what really drove Q3 performance,” Wall said.
AI tailwinds
He also cited the AI boom as a reason for the strong performance. .
“Demand from certain customers, such as the hyperscalers, has been outpacing the market overall, but we have been very deliberate to expand our customer base across our global network and further diversify our revenues.
On the specific growth areas, Wall said airfreight demand was helped by “record global air tonnage,” citing South Asia as a key market. Wall cited “hyperscaler demand.” “Air capacity remains constrained by limited fleet expansion and ongoing new aircraft delivery delays,” he added.
Wall also said U.S.-China e-commerce trade, which was impacted by the elimination of the U.S. break on de minimis imports, is back to the levels it was before the May 2025 shift in policy.”
“Adding geopolitical events to this mix, airfreight rates remained elevated during the quarter, with demand outpacing available capacity,” Wall said.
The ocean freight part of Expeditors’ business was impacted by three Asian typhoons, Wall said. But “the strength of our global network and world class operating teams enabled us to maintain service continuity and respond effectively as conditions deteriorated,” he added.
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A new survey of 103 industry experts has found that artificial intelligence is moving beyond trials in container ports and terminals, but measurable financial returns remain scarce.
While 44% of respondents said their organizations had reached the scaling stage or beyond, Boston Consulting Group reported, only 4% reported measurable earnings gains and just 11% systematically tracked AI’s contribution to efficiency or margins.
The findings highlight a measurement gap as operators expand their use of technology to process shipping documents, anticipate equipment failures and support operational decisions. Conducted in August 2026 with the Terminal Industry Committee 4.0 (TIC4.0), an international, non-profit association established in 2019 and based in Brussels, the survey covered experts across five continents, including terminal operators, port authorities, container shipping lines and port vendors. BCG published the findings in October.
The study assessed 43 AI use cases. Extracting data from shipping documents was being explored or implemented by 62% of respondents, while 48% were exploring or using AI to predict failures in equipment such as cranes and straddle carriers.
Respondents reported benefits primarily in day-to-day operations: 74% identified improved operational efficiency, 44% faster decision-making and 41% cost reductions. Just 18% reported an improvement in customer experience, suggesting that adoption has so far focused more on internal performance than customer-facing services.
Those reported improvements have not generally translated into documented earnings gains. An operator may identify faster workflows or reduced downtime without systematically establishing how much those improvements contribute to financial performance.
Unclear returns remain the biggest obstacle
Uncertainty over return on investment was the most frequently cited barrier to wider adoption, named by 41% of respondents. Data quality followed at 32%, while 30% cited difficulties integrating AI with existing systems.
The survey also revealed a divide between senior executives and colleagues closer to implementation. Among respondents below C-suite level, 44% identified unclear returns as a barrier, compared with 21% of senior leaders. The findings suggest that confidence at the top is not always matched by a clear business case for the teams responsible for deploying the technology.
Investment plans nevertheless indicate continued interest. Some 59% of respondents planned to hire or train AI specialists, 55% were allocating funding to research and development, and 47% planned to add AI modules to existing systems.
Moving from pilots to operational value
BCG and TIC4.0 recommended that operators establish evidence of value before expanding deployments, using performance baselines accepted by the operational managers closest to the work. They also called for investment in shared data foundations across businesses, rather than disconnected projects at individual terminals.
The report identified daily operational workflows as an important area for future development. The share of respondents identifying AI integration into those workflows as beneficial was expected to rise from 60% today to 74%, while interest in forecasting operational conditions and their causes was expected to increase from 49% to 67%.
Customer demand could provide another route to value. Freight forwarders were cited by 61% of respondents as a source of demand for AI-enabled terminal services, followed by third-party logistics providers at 58% and container shipping lines at 52%. BCG urged operators to develop services alongside customers, linking technical capabilities to needs for which there is already commercial interest.
Why it matters: For ports, expanding AI deployment is only part of the task; operators also need reliable evidence that it improves the business.
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