Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Index
			Page
Condensed Consolidated Balance Sheets			5
Condensed Consolidated Statements of Income			6
Condensed Consolidated Statements of Comprehensive Income			7
Condensed Consolidated Statements of Stockholders’ Equity			8
Condensed Consolidated Statements of Cash Flows			10
Notes to Condensed Consolidated Financial Statements			11
Note 1. Overview and Accounting Policies			11
Note 2. Common Stock Repurchase			12
Note 3. Divestitures			12
Note 4. Equity Investments			13
Note 5. Intangible Assets and Goodwill			13
Note 6. Inventories			14
Note 7. Reporting Segment and Geographic Information			14
Note 8. Debt			17
Note 9. Fair Value Measurements			18
Note 10. Deferred Revenue and Remaining Performance Obligations			18
Note 11. Earnings per Share			18
Note 12. Income Taxes			19
Note 13. Commitments and Contingencies			19

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TRIMBLE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

			As of
			Second Quarter of						Year End
			2025						2024
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents			$	265.9					$	738.8
Accounts receivable, net			539.5						725.8
Inventories			179.7						194.3
Prepaid expenses			109.6						103.3
Other current assets			194.9						196.2
Assets held for sale			—						312.0
Total current assets			1,289.6						2,270.4
Property and equipment, net			186.9						188.4
Goodwill			5,247.6						4,988.4
Other purchased intangible assets, net			1,014.8						998.1
Deferred income tax assets			300.2						294.4
Equity investments			630.7						361.0
Other non-current assets			429.4						387.6
Total assets			$	9,099.2					$	9,488.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt			$	71.0					$	—
Accounts payable			160.4						161.6
Accrued compensation and benefits			169.2						227.2
Deferred revenue			781.2						800.4
Income taxes payable			18.8						325.0
Other current liabilities			176.5						211.2
Liabilities held for sale			—						62.6
Total current liabilities			1,377.1						1,788.0
Long-term debt			1,441.4						1,390.6
Deferred revenue, non-current			101.0						95.6
Deferred income tax liabilities			211.7						199.9
Other non-current liabilities			279.9						268.9
Total liabilities			3,411.1						3,743.0
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value; 3.0 shares authorized; none issued and outstanding			—						—
Common stock, $0.001 par value; 360.0 shares authorized; 238.0 and 245.8 shares issued and outstanding at the end of the second quarter of 2025 and year end 2024			0.2						0.2
Additional paid-in-capital			2,364.8						2,369.4
Retained earnings			3,293.6						3,757.6
Accumulated other comprehensive income (loss)			29.5						(381.9)
Total stockholders’ equity			5,688.1						5,745.3
Total liabilities and stockholders’ equity			$	9,099.2					$	9,488.3

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

			Second Quarter of												First Two Quarters of
(In millions, except per share amounts)			2025						2024						2025						2024
Revenue:
Product			$	292.8					$	320.4					$	564.4					$	687.5
Subscription and services			582.9						550.4						1,151.9						1,136.6
Total revenue			875.7						870.8						1,716.3						1,824.1
Cost of sales:
Product			144.4						176.5						288.1						384.0
Subscription and services			117.3						120.4						237.0						244.8
Amortization of purchased intangible assets			16.1						28.0						32.5						55.8
Total cost of sales			277.8						324.9						557.6						684.6
Gross margin			597.9						545.9						1,158.7						1,139.5
Operating expense:
Research and development			163.3						161.5						321.8						331.7
Sales and marketing			158.4						142.5						311.6						289.3
General and administrative			117.6						148.7						239.1						282.8
Restructuring			4.0						5.1						8.5						11.7
Amortization of purchased intangible assets			26.8						26.5						52.4						53.2
Total operating expense			470.1						484.3						933.4						968.7
Operating income			127.8						61.6						225.3						170.8
Non-operating (expense) income, net:
Divestitures gain, net			2.6						1,714.1						4.8						1,717.6
Interest expense, net			(19.4)						(18.1)						(35.0)						(63.3)
Income from equity method investments, net			2.3						4.3						3.3						9.9
Other income, net			—						0.1						1.3						—
Total non-operating (expense) income, net			(14.5)						1,700.4						(25.6)						1,664.2
Income before taxes			113.3						1,762.0						199.7						1,835.0
Income tax provision			24.1						445.6						43.8						461.4
Net income			$	89.2					$	1,316.4					$	155.9					$	1,373.6
Earnings per share:
Basic			$	0.37					$	5.37					$	0.65					$	5.60
Diluted			$	0.37					$	5.34					$	0.64					$	5.56
Shares used in calculating earnings per share:
Basic			238.1						245.1						240.7						245.3
Diluted			239.6						246.4						242.9						246.9

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

			Second Quarter of												First Two Quarters of
			2025						2024						2025						2024
(In millions)
Net income			$	89.2					$	1,316.4					$	155.9					$	1,373.6
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments, net of tax			228.0						(36.7)						411.8						(117.0)
Net change related to derivatives and other, net of tax			(0.1)						(1.1)						(0.4)						(1.3)
Comprehensive income			$	317.1					$	1,278.6					$	567.3					$	1,255.3

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(in millions)			Common stock																		Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Stockholders’ Equity
Second Quarter Ended July 4, 2025			Shares						Amount						Additional Paid-In Capital
Balance as of April 4, 2025			237.2						$	0.2					$	2,333.8					$	3,283.5					$	(198.4)					$	5,419.1
Net income			—						—						—						89.2						—						89.2
Other comprehensive income			—						—						—						—						227.9						227.9
Issuance of common stock under employee plans, net of tax withholdings			1.5						—						(6.3)						(36.0)						—						(42.3)
Stock repurchases			(0.7)						—						(6.0)						(43.1)						—						(49.1)
Stock-based compensation			—						—						43.3						—						—						43.3
Balance as of July 4, 2025			238.0						$	0.2					$	2,364.8					$	3,293.6					$	29.5					$	5,688.1
			Common stock																		Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Stockholders’ Equity
First Two Quarters Ended July 4, 2025			Shares						Amount						Additional Paid-In Capital
Balance as of January 3, 2025			245.8						$	0.2					$	2,369.4					$	3,757.6					$	(381.9)					$	5,745.3
Net income			—						—						—						155.9						—						155.9
Other comprehensive income			—						—						—						—						411.4						411.4
Issuance of common stock under employee plans, net of tax withholdings			1.9						—						10.8						(36.8)						—						(26.0)
Stock repurchases			(9.7)						—						(99.4)						(583.1)						—						(682.5)
Stock-based compensation			—						—						84.0						—						—						84.0
Balance as of July 4, 2025			238.0						$	0.2					$	2,364.8					$	3,293.6					$	29.5					$	5,688.1

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

(UNAUDITED)

(in millions)			Common stock																		Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
Second Quarter Ended June 28, 2024			Shares						Amount						Additional Paid-In Capital
Balance as of March 29, 2024			244.2						$	0.2					$	2,240.7					$	2,340.8					$	(232.6)					$	4,349.1
Net income			—						—						—						1,316.4						—						1,316.4
Other comprehensive loss			—						—						—						—						(37.8)						(37.8)
Issuance of common stock under employee plans, net of tax withholdings			1.2						—						(5.4)						(28.8)						—						(34.2)
Stock repurchases			—						—						0.7						—						—						0.7
Stock-based compensation			—						—						39.2						—						—						39.2
Balance as of June 28, 2024			245.4						$	0.2					$	2,275.2					$	3,628.4					$	(270.4)					$	5,633.4
			Common stock																		Retained Earnings						Accumulated Other Comprehensive Loss						Total Stockholders’ Equity
First Two Quarters Ended June 28, 2024			Shares						Amount						Additional Paid-In Capital
Balance as of December 29, 2023			246.5						$	0.2					$	2,214.6					$	2,437.4					$	(152.1)					$	4,500.1
Net income			—						—						—						1,373.6						—						1,373.6
Other comprehensive loss			—						—						—						—						(118.3)						(118.3)
Issuance of common stock under employee plans, net of tax withholdings			1.8						—						11.3						(33.5)						—						(22.2)
Stock repurchases			(2.9)						—						(26.7)						(149.1)						—						(175.8)
Stock-based compensation			—						—						76.0						—						—						76.0
Balance as of June 28, 2024			245.4						$	0.2					$	2,275.2					$	3,628.4					$	(270.4)					$	5,633.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

			First Two Quarters of
(In millions)			2025						2024
Cash flow from operating activities:
Net income			$	155.9					$	1,373.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			98.8						125.8
Deferred income taxes			(19.5)						50.4
Stock-based compensation			76.3						73.8
Divestitures gain, net			(4.8)						(1,717.6)
Other, net			41.4						8.7
(Increase) decrease in assets:
Accounts receivable, net			202.7						114.8
Inventories			12.6						14.1
Other current and non-current assets			(6.4)						(5.9)
Increase (decrease) in liabilities:
Accounts payable			(12.5)						12.9
Accrued compensation and benefits			(65.5)						(18.5)
Deferred revenue			(31.8)						55.5
Income taxes payable			(308.5)						265.7
Other current and non-current liabilities			(36.6)						(31.9)
Net cash provided by operating activities			102.1						321.4
Cash flow from investing activities:
Divestiture of businesses, net of cash divested			(7.3)						1,927.0
Acquisitions of businesses, net of cash acquired			(4.4)						(21.8)
Purchases of property and equipment			(12.5)						(21.1)
Other, net			(3.0)						(13.0)
Net cash (used in) provided by investing activities			(27.2)						1,871.1
Cash flow from financing activities:
Issuance of common stock, net of tax withholdings			(23.1)						(22.2)
Repurchases of common stock			(677.4)						(175.0)
Proceeds from debt and revolving credit lines			348.3						521.2
Payments on debt and revolving credit lines			(227.3)						(1,799.3)
Other, net			(3.1)						(4.6)
Net cash used in financing activities			(582.6)						(1,479.9)
Effect of exchange rate changes on cash and cash equivalents			25.8						(7.4)
Net (decrease) increase in cash and cash equivalents			(481.9)						705.2
Cash and cash equivalents - beginning of period (1)			747.8						238.9
Cash and cash equivalents - end of period			$	265.9					$	944.1
Supplemental cash flow disclosure:
Cash paid for income taxes, excluding tax for the Ag divestiture			$	87.9					$	49.5
Cash tax paid for the Ag divestiture			277.4						50.0
Non-cash equity investments (Note 3)
(1) Includes $9.0 million and $9.1 million of cash and cash equivalents classified as held for sale as of January 3, 2025 and December 29, 2023.

See accompanying Notes to the Condensed Consolidated Financial Statements.

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TRIMBLE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1. OVERVIEW AND ACCOUNTING POLICIES

Basis of Presentation

The Condensed Consolidated Financial Statements include our results of our consolidated subsidiaries. Intercompany accounts and transactions have been eliminated.

The interim financial information is unaudited, and reflects all normal adjustments that are, in our opinion, necessary to provide a fair statement of results for the interim periods presented. This report should be read in conjunction with our 2024 Form 10-K that includes additional information about our significant accounting policies and the methods and assumptions used in our estimates.

We prepared our interim Condensed Consolidated Financial Statements that accompany these notes in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2024 Form 10-K.

We use a 52- to 53-week year ending on the Friday nearest to December 31. 2025 is a 52-week year, and 2024 was a 53-week year. The second quarter of 2025 and 2024 ended on July 4, 2025 and June 28, 2024. Unless otherwise stated, all dates refer to these periods.

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates and assumptions are used for (i) revenue recognition, including determining the nature and timing of satisfaction of performance obligations and determining standalone selling price of performance obligations; (ii) inventory valuation; (iii) valuation of investments; (iv) valuation of long-lived assets and their estimated useful lives; (v) goodwill and other long-lived asset impairment analyses; (vi) stock-based compensation; and (vii) income taxes. We base our estimates on historical experience and various other assumptions we believe to be reasonable. Actual results that we experience may differ materially from our estimates.

Recently Issued Accounting Pronouncements Not Yet Adopted

In July 2025, the FASB issued Accounting Standards Update (“ASU”) 2025-05, Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU allows a practical expedient election to simplify the expected credit loss estimation for accounts receivable and contract assets by assuming conditions as of the balance sheet date do not change for the remaining life of the asset. The ASU is applied prospectively and is effective for interim and annual reports beginning in 2026, with early adoption permitted. We are currently evaluating the impact of adopting this ASU.

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. The ASU requires additional disclosures by disaggregating the costs and expense line items that are presented on the face of the income statement. The disaggregation includes: (i) amounts of purchased inventory, employee compensation, depreciation, amortization, and other related costs and expenses; (ii) an explanation of costs and expenses that are not disaggregated on a quantitative basis; and (iii) the definition and total amount of selling expenses. The ASU is effective for our annual report on Form 10-K beginning in 2027 and subsequent interim reporting periods, with early adoption permitted. The ASU can be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this ASU on our financial reporting disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU updates the annual income tax disclosures by requiring (i) specific categories and greater disaggregation of information in the rate reconciliation; (ii) income taxes paid disaggregated by taxing authority and jurisdiction; and (iii) disclosures of pretax income (or loss) and income tax expense (or benefit). Additionally, certain existing disclosure requirements are removed. The ASU is effective for our annual report on Form 10-K beginning in 2025 on a prospective basis. Early adoption and retrospective application are permitted. We are currently evaluating the impact of adopting this ASU on our financial reporting disclosures.

Recently Adopted Accounting Pronouncements

We did not adopt any new accounting pronouncements during the first two quarters of 2025.

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NOTE 2. COMMON STOCK REPURCHASE

In the first quarter of 2025, the Board of Directors approved a new stock repurchase program authorizing up to $1.0 billion in repurchases of our common stock. The new stock repurchase program replaced the prior 2024 stock repurchase program, which was approved in January 2024 and has been cancelled.

Under the 2025 stock repurchase program, we may repurchase stock from time to time through accelerated stock repurchase programs, open market transactions, privately negotiated transactions, block purchases, tender offers, or other means. The timing and actual amount of any stock repurchased will depend on a variety of factors, including market conditions, our stock price, other available uses of capital, applicable legal requirements, and other factors. This program may be suspended, modified, or discontinued at any time without prior notice. The stock repurchase authorization does not have an expiration date. At the end of the second quarter of 2025, there were remaining authorized funds of $322.6 million.

During the second quarter and first two quarters of 2025, we repurchased approximately 0.7 million and 9.7 million shares of common stock in open market purchases at an average price of $71.43 and $70.04 per share for a total of $50.0 million and $677.4 million.

There were no stock repurchases during the second quarter of 2024. During the first two quarters of 2024, we repurchased approximately 2.9 million shares of common stock in open market purchases at an average price of $60.97 per share for a total of $175.0 million.

Stock repurchases are reflected as a decrease to common stock based on par value and additional-paid-in-capital, determined by the average book value per share of outstanding stock, calculated at the time of each individual repurchase transaction. The excess of the purchase price over this average for each repurchase was charged to retained earnings. Common stock repurchases under the program were recorded based upon the trade date for accounting purposes.

NOTE 3. DIVESTITURES

Mobility Divestiture

On February 8, 2025, we completed the sale of our Mobility business to Platform Science in exchange for equity ownership interests with a fair value of $253.9 million. The fair value was based on unobservable inputs, including discounted cash flow projections, market comparables, and an option pricing model. Following the closing of the transaction, we own, or have rights to acquire, 32.5% of Platform Science’s expanded business comprised of (i) shares of preferred stock, with certain liquidation preferences, that represent 28.5% ownership, and (ii) common stock warrants allowing us the rights to acquire 4% of additional ownership.

Upon closing the transaction, we deconsolidated $277.3 million of net assets including $145.3 million of goodwill, and we recorded our equity investment at its fair value under the measurement alternative election, which represents a non-cash investing activity. As a result, we recognized a cumulative, pre-tax loss of $30.6 million from the held for sale date in the third quarter of 2024 to the closing date. Mobility was reported as a part of our T&L segment.

The combined business aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems.

Ag Divestiture

On April 1, 2024, we completed the sale and contribution of our Ag business to AGCO in exchange for $1.9 billion of cash proceeds and an equity ownership interest in PTx Trimble, a joint venture (the “JV”) that was formed by Trimble and AGCO, with a fair value of $275.6 million. The fair value was based on a combination of the equity value, primarily the transaction price, and an option pricing model for a put and call option. Following the closing of the transaction, we own 15% of PTx Trimble.

Upon closing the transaction, we deconsolidated $457.3 million of net assets, including $357.4 million of goodwill, and we recorded our equity investment at its fair value under the equity method of accounting, which represents a non-cash investing activity. As a result, we recognized a pre-tax gain of $1.7 billion in the second quarter of 2024, which included the gain for our retained 15% ownership interest in the JV. The sale and contribution of the Ag business excluded certain GNSS and guidance technologies. Ag was reported as a part of our Field Systems segment.

The formation of the JV is expected to better serve farmers with factory fit and aftermarket applications in the mixed fleet precision agriculture market to help farmers drive productivity, efficiency, and sustainability.

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NOTE 4. EQUITY INVESTMENTS

The following table presents our equity investments in non-marketable securities:

			As of
			Second Quarter of						Year End
			2025						2024
(In millions)
Equity method investments			$	345.8					$	334.6
Other investments			284.9						26.4
Total equity investments			$	630.7					$	361.0

Equity Method Investments

Equity method investments primarily represent joint operating ventures in privately-held companies with ownership rights varying from 5% to 50%. The Company applies the equity method of accounting for these investments by recording our proportionate share of net earnings or losses of investees in non-operating (expense) income, net and by monitoring these investments for any impairments.

Of the total carrying amount of equity method investments, our 15% investment in PTx Trimble was $222.2 million and $222.3 million at the end of the second quarter of 2025 and year end 2024.

Other Investments

Other investments are related to privately-held companies without readily determinable fair values with ownership rights varying from 1% to 32.5%. The Company applies the measurement alternative for these investments, which requires measurement at initial cost, less any impairments, adjusted for observable price changes. Adjustments are recorded in other income (expense), net, which were immaterial for the periods presented.

Of the total carrying amount of other investments, our 32.5% investment in Platform Science was $253.9 million at the end of the second quarter of 2025.

NOTE 5. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

The following table presents a summary of our intangible assets:

			As of
			Second Quarter of 2025																		Year End 2024
			Gross																		Gross
			Carrying						Accumulated						Net Carrying						Carrying						Accumulated						Net Carrying
(In millions)			Amount						Amortization						Amount						Amount						Amortization						Amount
Developed product technology			$	827.8					$	(581.7)					$	246.1					$	819.0					$	(561.2)					$	257.8
Customer relationships			1,278.7						(514.4)						764.3						1,175.5						(440.2)						735.3
Trade names and other intellectual properties			36.6						(32.2)						4.4						39.0						(34.0)						5.0
			$	2,143.1					$	(1,128.3)					$	1,014.8					$	2,033.5					$	(1,035.4)					$	998.1

The estimated future amortization expense of intangible assets at the end of the second quarter of 2025 was as follows:

(In millions)
2025 (Remaining)			$	87.8
2026			171.5
2027			158.2
2028			144.0
2029			122.5
Thereafter			330.8
Total			$	1,014.8

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Goodwill

The changes in the carrying amount of goodwill by segment for the first two quarters of 2025 were as follows:

			AECO						Field Systems						T&L						Total
(In millions)
Balance as of year end 2024			$	1,986.1					$	958.2					$	2,044.1					$	4,988.4
Decreases due to divestitures			—						—						(3.6)						(3.6)
Foreign currency translation and other adjustments			53.7						18.0						191.1						262.8
Balance as of the end of the second quarter of 2025			$	2,039.8					$	976.2					$	2,231.6					$	5,247.6

NOTE 6. INVENTORIES

The components of inventories, net were as follows:

			As of
			Second Quarter of						Year End
			2025						2024
(In millions)
Raw materials			$	67.1					$	71.7
Work-in-process			5.8						5.2
Finished goods			106.8						117.4
Total inventories			$	179.7					$	194.3

NOTE 7. REPORTING SEGMENT AND GEOGRAPHIC INFORMATION

We determined our operating segments based on how our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), views and evaluates operations. Various factors, including market separation and customer-specific applications, go-to-market channels, and products and services, were considered in determining these operating segments. Our CODM uses segment revenue and operating income to assess segment performance and to allocate resources. The CODM evaluates segment revenue and operating income by considering periodic forecast-to-actual variances and trends, as well as overall strategic initiatives. Asset information by segments is not regularly reviewed by the CODM.

In each of our segments, we sell many individual products. For this reason, it is impracticable to segregate and identify revenue for each of the individual products or group of products we sell.

Our reportable segments are described below:

• Architects, Engineers, Construction and Owners (“AECO”)**. This segment primarily serves customers working in architecture, engineering, construction, design, asset management, operations, and maintenance. Within this segment, our most substantial product portfolios are software solutions focused on design, engineering, building and civil construction, capital planning, and asset management software. Products are sold primarily through a direct channel to customers.

• Field Systems**. This segment primarily serves customers working in surveying and mapping, civil construction, building construction field services, and positioning systems. Within this segment, our most substantial product portfolios are hardware and software solutions focused on geospatial, civil engineering construction, and positioning services. Products are sold and distributed primarily through a global network of independent distribution partners.

• Transportation and Logistics (“T&L”)**. This segment provides a suite of solutions for shippers, carriers, and intermediaries globally. Within this segment, our most substantial product portfolio addresses the truckload freight market. Products are sold primarily through a direct channel to customers.

The following reporting segment tables reflect the revenue, costs and expenses, and operating income of our reportable operating segments under our management reporting system. Segment costs and expenses include directly attributable costs and certain indirect costs allocated to segments, such as facilities, information technology, cloud services, finance, legal, and human resources. This is consistent with the way the CODM evaluates each of the segment’s performance and allocates resources.

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			Reporting Segments
			AECO						Field Systems						T&L
(In millions)
Second Quarter of 2025
Segment revenue			$	350.3					$	392.7					$	132.7
Cost of sales			59.7						161.9						33.6
Operating expense			184.2						109.8						70.5
Operating income			$	106.4					$	121.0					$	28.6
Operating income %			30.4		%				30.8		%				21.6		%
Second Quarter of 2024
Segment revenue			$	299.7					$	379.3					$	191.8
Cost of sales			53.4						168.5						69.3
Operating expense			167.2						101.0						86.6
Operating income			$	79.1					$	109.8					$	35.9
Operating income %			26.4		%				28.9		%				18.7		%
First Two Quarters of 2025
Segment revenue			$	685.7					$	751.9					$	278.7
Cost of sales			118.6						316.1						78.2
Operating expense			369.1						208.2						145.8
Operating income			$	198.0					$	227.6					$	54.7
Operating income %			28.9		%				30.3		%				19.6		%
First Two Quarters of 2024
Segment revenue			$	638.8					$	798.5					$	386.8
Cost of sales			108.7						364.4						142.8
Operating expense			324.3						226.0						171.8
Operating income			$	205.8					$	208.1					$	72.2
Operating income %			32.2		%				26.1		%				18.7		%

A reconciliation of our condensed consolidated segment operating income to condensed consolidated income before income taxes was as follows:

			Second Quarter of												First Two Quarters of
			2025						2024						2025						2024
(In millions)
Total segment operating income			$	256.0					$	224.8					$	480.3					$	486.1
Unallocated general corporate expenses			(33.4)						(30.4)						(59.5)						(57.3)
Amortization of purchased intangible assets			(42.9)						(54.5)						(84.9)						(109.0)
Acquisition / divestiture items			(2.7)						(33.9)						(11.6)						(57.8)
Stock-based compensation / deferred compensation			(40.8)						(38.1)						(78.3)						(76.9)
Restructuring and other costs			(8.4)						(6.3)						(20.7)						(14.3)
Consolidated operating income			127.8						61.6						225.3						170.8
Total non-operating (expense) income, net			(14.5)						1,700.4						(25.6)						1,664.2
Consolidated income before taxes			$	113.3					$	1,762.0					$	199.7					$	1,835.0

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The disaggregation of revenue by geography is summarized in the tables below. Revenue is defined as revenue from external customers attributed to countries based on the location of the customer and is consistent with the Reporting Segment tables above.

			Reporting Segments
			AECO						Field Systems						T&L						Total
(In millions)
Second Quarter of 2025
North America			$	223.9					$	216.5					$	70.5					$	510.9
Europe			86.2						105.5						58.0						249.7
Asia Pacific			30.5						47.7						3.3						81.5
Rest of World			9.7						23.0						0.9						33.6
Total segment revenue			$	350.3					$	392.7					$	132.7					$	875.7
Second Quarter of 2024
North America			$	191.5					$	200.4					$	114.9					$	506.8
Europe			71.3						96.2						63.9						231.4
Asia Pacific			27.0						59.1						3.3						89.4
Rest of World			9.9						23.6						9.7						43.2
Total segment revenue			$	299.7					$	379.3					$	191.8					$	870.8
First Two Quarters of 2025
North America			$	453.1					$	408.8					$	154.7					$	1,016.6
Europe			158.0						201.1						113.3						472.4
Asia Pacific			58.2						97.1						6.0						161.3
Rest of World			16.4						44.9						4.7						66.0
Total segment revenue			$	685.7					$	751.9					$	278.7					$	1,716.3
First Two Quarters of 2024
North America			$	384.6					$	382.4					$	234.6					$	1,001.6
Europe			171.3						236.7						120.6						528.6
Asia Pacific			62.0						124.1						9.0						195.1
Rest of World			20.9						55.3						22.6						98.8
Total segment revenue			$	638.8					$	798.5					$	386.8					$	1,824.1

Total revenue in the United States, as included in the Condensed Consolidated Statements of Income, was $466.9 million for both the second quarter of 2025 and 2024, and $936.7 million and $923.8 million for the first two quarters of 2025 and 2024. No single customer or country other than the United States accounted for 10% or more of our total revenue.

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NOTE 8. DEBT

Debt consisted of the following:

												As of
												Second Quarter of												Year End
Instrument						Date of Issuance						2025									2024
(In millions)												Effective interest rate
Senior Notes:
Senior Notes, 4.90%, due June 2028						June 2018						5.04%			$	600.0								$	600.0
Senior Notes, 6.10%, due March 2033						March 2023						6.13%			800.0									800.0
Credit Facilities:
2022 Revolving Credit Facility, due March 2027						September 2022						5.54%			50.0									—
Uncommitted Credit Facilities, floating rate												5.60%			71.0									—
Unamortized discount and issuance costs															(8.6)									(9.4)
Total debt															$	1,512.4								$	1,390.6
Less: Short-term debt															71.0									—
Total long-term debt															$	1,441.4								$	1,390.6

Debt Maturities

At the end of the second quarter of 2025, our debt maturities based on the outstanding principal amounts were as follows (in millions):

Year Payable
2025 (Remaining)			$	71.0
2026			—
2027			50.0
2028			600.0
2029			—
Thereafter			800.0
Total			$	1,521.0

Senior Notes

All of our senior notes are unsecured obligations. Interest on the senior notes is payable semi-annually in June and December of each year for the 2028 senior notes and in March and September for the 2033 senior notes. Additional details are unchanged from the information disclosed in Note 8 “Debt” of the 2024 Form 10-K.

Credit Facilities

2022 Credit Facility

In 2022, we entered into a five-year, unsecured, revolving credit facility in the aggregate principal amount of up to $1.25 billion. Subject to approval, we may increase the commitments for revolving loans by an aggregate principal amount of up to $500.0 million. The variable interest rate and commitment fees are based on our current long-term, senior unsecured debt ratings, our leverage ratio, and certain specified sustainability targets.

At the end of the second quarter of 2025, we were in compliance with our debt covenants for the 2022 credit facility. Additional details are unchanged from the information disclosed in Note 8 “Debt” of the 2024 Form 10-K.

Uncommitted Facilities

At the end of the second quarter of 2025, we had two $75.0 million and one €100.0 million revolving credit facilities, which are uncommitted. Generally, these variable-rate, uncommitted facilities may be redeemed upon demand. Borrowings under uncommitted facilities are classified as short-term debt in the Condensed Consolidated Balance Sheet.

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NOTE 9. FAIR VALUE MEASUREMENTS

Fair value is measured by using observable or, to the extent necessary, unobservable inputs.

Financial instruments recorded at fair value include our deferred compensation plan. The fair value was $30.5 million and $31.0 million at the end of the second quarter of 2025 and the end of 2024, and is included in Other non-current assets and Other non-current liabilities on our Condensed Consolidated Balance Sheets. The fair value was measured by using quoted prices in active markets.

Financial instruments not recorded at fair value on a recurring basis (debt) had an estimated fair value of $1.6 billion and $1.4 billion at the end of the second quarter of 2025 and the end of 2024. The fair value of the debt was determined based on observable market prices in less active markets. The fair values do not indicate the amount we would currently have to pay to extinguish the debt.

NOTE 10. DEFERRED REVENUE AND REMAINING PERFORMANCE OBLIGATIONS

Deferred Revenue

Changes in our deferred revenue during the second quarter of 2025 and 2024 were as follows:

			Second Quarter of												First Two Quarters of
(In millions)			2025						2024						2025						2024
Beginning balance of the period			$	892.8					$	818.6					$	896.0					$	761.4
Revenue recognized from prior year-end			(218.5)						(173.3)						(546.0)						(472.5)
Billings net of revenue recognized from current year and other			207.9						168.3						532.2						524.7
Ending balance of the period			$	882.2					$	813.6					$	882.2					$	813.6

Remaining Performance Obligations

At the end of the second quarter of 2025, approximately $1.7 billion of revenue is expected to be recognized from remaining performance obligations for which goods or services have not been delivered, primarily subscription, software, and software maintenance, and to a lesser extent, hardware and professional services contracts. We expect to recognize $1.2 billion, approximately 70%, of our remaining performance obligations as revenue during the next 12 months and the remainder thereafter.

NOTE 11. EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted-average number of shares of common stock outstanding during the period plus additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive shares of common stock include outstanding stock options, restricted stock units, contingently issuable shares, and shares to be purchased under our employee stock purchase plan.

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The following table shows the computation of basic and diluted earnings per share:

			Second Quarter of												First Two Quarters of
			2025						2024						2025						2024
(In millions, except per share amounts)
Numerator:
Net income			$	89.2					$	1,316.4					$	155.9					$	1,373.6
Denominator:
Weighted-average shares of common stock outstanding - basic			238.1						245.1						240.7						245.3
Effect of dilutive securities			1.5						1.3						2.2						1.6
Weighted-average shares of common stock outstanding - diluted			239.6						246.4						242.9						246.9
Basic earnings per share			$	0.37					$	5.37					$	0.65					$	5.60
Diluted earnings per share			$	0.37					$	5.34					$	0.64					$	5.56
Antidilutive weighted-average shares (1)			0.8						2.2						0.6						1.5

(1) Antidilutive stock-based awards are excluded from the calculation of diluted shares and diluted earnings per share because their impact would increase diluted earnings per share.

NOTE 12. INCOME TAXES

For the second quarter of 2025, our effective income tax rate was 21.3%, as compared to 25.3% in the corresponding period in 2024. For the first two quarters, our effective income tax rate was 21.9%, as compared to 25.1% in the prior year. The decreases were primarily due to gains from the Ag divestiture in 2024.

Unrecognized tax benefits of $46.4 million and $45.8 million at the end of the second quarter of 2025 and at the end of 2024, if recognized, would favorably affect the effective income tax rate in future periods. At the end of the second quarter of 2025 and at the end of 2024, we accrued interest and penalties of $10.2 million and $8.8 million.

The OBBBA, signed into law on July 4, 2025, includes changes to U.S. federal tax regulations. We have accounted for its tax implications in the second quarter of 2025 based on our current interpretation of the legislation, and the impact to our tax rate for this period is immaterial. The OBBBA permanently repeals the domestic R&D capitalization requirement. As a result, we expect cash tax reductions of approximately $32 million in 2025 and approximately $80 million in subsequent years. The Company continues to evaluate the OBBBA and does not currently believe it will have a material impact on our effective income tax rate.

NOTE 13. COMMITMENTS AND CONTINGENCIES

Commitments

At the end of the second quarter of 2025, we had unconditional purchase obligations of approximately $408.3 million. These unconditional purchase obligations primarily represent (i) various non-cancellable agreements with certain service providers with minimum or fixed commitments, and (ii) open non-cancellable purchase orders for material purchases with our inventory vendors.

Litigation

From time to time, we are involved in litigation arising in the ordinary course of our business. There are no material legal proceedings, aside from ordinary routine litigation incidental to our business, that we or any of our subsidiaries are party to or our property is subject to.

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