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Trimble (TRMB)
NASDAQ:TRMB
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Trimble (TRMB) AI Stock Analysis

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TRMB

Trimble

(NASDAQ:TRMB)

Rating:76Outperform
Price Target:
$89.00
▲(5.09%Upside)
Trimble's overall score is driven by strong earnings results and bullish technical indicators, which highlight the company's growth potential and market confidence. The valuation remains appealing despite the absence of a dividend. Notably, the company's strategic focus on AI and ARR growth supports its long-term resilience, though macroeconomic risks and revenue challenges in certain regions are considerations.
Positive Factors
Business Model Resilience
Trimble demonstrated its resilient business model amidst a lot of uncertainty.
Financial Performance
Trimble delivered another solid quarter, beating Street consensus revenue by $29.7 million.
Innovation and Technology
Trimble's platform delivers innovation such as AI and new software delivery models, instilling customer confidence.
Negative Factors
Customer Purchasing Decisions
Larger contractors, who are 10% of the business, are slowing buying decisions amidst the uncertainty.
Tariff Impact
Trimble faces a $10 million headwind from tariffs, which has led to a 4% price increase passed on to customers.

Trimble (TRMB) vs. SPDR S&P 500 ETF (SPY)

Trimble Business Overview & Revenue Model

Company DescriptionTrimble Inc. is a technology company that provides advanced location-based solutions across various industries including agriculture, construction, geospatial, and transportation. The company's core products and services include GPS systems, laser rangefinders, unmanned aerial vehicles (UAVs), software solutions, and analytics tools that enhance productivity, improve safety, and optimize workflows.
How the Company Makes MoneyTrimble makes money through the sale of its hardware products such as GPS systems, laser rangefinders, and UAVs, which are used in various industries for precise location tracking and data collection. Additionally, the company generates revenue through software solutions and subscription-based services that provide analytics and insights to enhance operational efficiency. Trimble also benefits from strategic partnerships and collaborations with industry leaders, which extend its market reach and enhance its product offerings. Services such as installation, maintenance, and training further contribute to its revenue streams.

Trimble Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes sales across various business divisions, indicating which areas are most lucrative and where the company might expand or face competition.
Chart InsightsTrimble's Buildings and Infrastructure segment shows a steady recovery in 2023, aligning with the company's strong Q1 performance and strategic focus on AI. However, the Geospatial and Resources and Utilities segments face challenges, with declining revenues possibly due to macroeconomic uncertainties and tariff-related costs. The Transportation segment's recent growth is promising, supported by a 7% ARR increase. Despite these mixed trends, Trimble's overall revenue growth and AI initiatives suggest resilience, although cautious guidance reflects potential risks from tariffs and extended sales cycles.
Data provided by:Main Street Data

Trimble Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 33.75%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Trimble posted strong Q1 results with significant growth in key segments and advancements in AI initiatives. However, macroeconomic uncertainties, including tariffs and extended sales cycles, present challenges. The company's cautious guidance reflects these potential risks.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue at $841 million was up 3% organically and up 10% after adjusting for the timing of January 1. ARR at $2.11 billion was up 17% organically, with EPS at $0.61 ahead of expectations.
Field Systems Segment Performance
Field Systems outperformed with particular strength in civil construction and advanced positioning. ARR growth was up 25% to a record $358 million.
AECO Segment Success
AECO delivered a record $1.29 billion of ARR, posting 19% ARR growth for the quarter. Operating income increased, with margins expanding.
Transportation and Logistics Growth
ARR in Transportation grew 7% to a record $459 million, with operating margins expected to improve in the coming quarters.
AI Initiatives
Trimble is advancing its AI journey with internal summits and integrating AI into customer-facing solutions, aiding in efficiency and growth.
Negative Updates
Macroeconomic Uncertainty
The uncertainty of tariffs and trade policy poses potential risks, with the company maintaining a cautious outlook despite strong Q1 results.
Tariff-Related Cost Increases
Tariffs add approximately $10 million per quarter to the cost of goods in the Field Systems segment, requiring pricing adjustments to offset.
Longer Sales Cycles in AECO
Observed slightly longer sales cycles with enterprise customers, indicating a cautious approach amidst macroeconomic uncertainties.
Company Guidance
During Trimble's First Quarter 2025 Financial Results Conference Call, the company provided guidance focusing on several key metrics that illustrate its performance and strategic direction. Revenue in the first quarter of 2025 reached $841 million, representing a 3% organic increase and a 10% rise after accounting for the timing of January 1st license revenue. The Annual Recurring Revenue (ARR) grew by 17% organically to $2.11 billion, surpassing expectations across segments. Earnings per share (EPS) exceeded forecasts at $0.61. Despite a strong start, Trimble maintained its full-year guidance, with projected revenue at $3.42 billion and EPS at $2.87. They also anticipate an organic ARR growth midpoint of 14%. Gross margins were reported at 69.9%, an expansion of 180 basis points year-over-year, and EBITDA margins at 25.9%, a 100 basis point increase. The company highlighted the durability of its business model, with a strong balance sheet featuring a leverage ratio below 1.3 times. Capital deployment included a share repurchase of $627 million in the first quarter, with $373 million still authorized. Trimble remains focused on leveraging AI to enhance operations and customer solutions, emphasizing its commitment to innovation and efficiency.

Trimble Financial Statement Overview

Summary
Trimble demonstrates strong profitability with solid margins and an efficient balance sheet characterized by low leverage and high return on equity. Despite a slight revenue decline and reduced cash flow growth, the company maintains a strong financial position. Continued focus on revenue growth and cash flow improvement will be key for sustaining long-term performance.
Income Statement
75
Positive
The income statement reveals a stable performance with a gross profit margin of approximately 66.8% and a net profit margin of about 42.4% for TTM. There is a slight revenue decline from the previous annual period, but high profitability is maintained, indicating efficiency in cost management. The EBIT and EBITDA margins are also strong, suggesting robust operating performance.
Balance Sheet
70
Positive
The balance sheet indicates a solid financial position with a debt-to-equity ratio of approximately 0.26, reflecting low leverage. The equity ratio stands at 60.9%, showing a strong equity base. Return on equity is high at around 27.9%, demonstrating effective use of equity in generating profits. However, total assets have slightly declined, which could be a potential risk if the trend continues.
Cash Flow
65
Positive
Cash flow analysis shows a decrease in operating cash flow year-over-year, yet the company maintains a positive free cash flow. The free cash flow to net income ratio is healthy, indicating good cash generation relative to net profits. Nonetheless, the lower free cash flow growth rate suggests caution in future cash flow sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.68B3.80B3.68B3.66B3.15B
Gross Profit2.40B2.33B2.11B2.03B1.75B
EBITDA2.33B768.60M747.40M845.80M692.90M
Net Income1.50B311.30M449.70M492.80M389.90M
Balance Sheet
Total Assets9.49B9.54B7.27B7.10B6.88B
Cash, Cash Equivalents and Short-Term Investments738.80M229.80M271.00M325.70M237.70M
Total Debt1.51B3.22B1.63B1.41B1.66B
Total Liabilities3.74B5.04B3.22B3.15B3.28B
Stockholders Equity5.75B4.50B4.05B3.94B3.60B
Cash Flow
Free Cash Flow497.80M555.10M348.00M704.40M615.20M
Operating Cash Flow531.40M597.10M391.20M750.50M672.00M
Investing Cash Flow1.86B-2.07B-226.30M-203.50M-231.80M
Financing Cash Flow-1.86B1.43B-199.00M-447.70M-400.30M

Trimble Technical Analysis

Technical Analysis Sentiment
Positive
Last Price84.69
Price Trends
50DMA
75.82
Positive
100DMA
70.24
Positive
200DMA
70.41
Positive
Market Momentum
MACD
2.76
Negative
RSI
76.50
Negative
STOCH
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRMB, the sentiment is Positive. The current price of 84.69 is above the 20-day moving average (MA) of 81.14, above the 50-day MA of 75.82, and above the 200-day MA of 70.41, indicating a bullish trend. The MACD of 2.76 indicates Negative momentum. The RSI at 76.50 is Negative, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRMB.

Trimble Risk Analysis

Trimble disclosed 30 risk factors in its most recent earnings report. Trimble reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Trimble Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$28.67B39.1314.30%-1.16%-7.04%
77
Outperform
$26.10B30.448.72%6.47%-1.48%
76
Outperform
$20.30B13.7931.00%-6.93%537.94%
71
Outperform
$18.95B22.7517.67%-3.63%2.26%
68
Neutral
$17.38B22.517.70%0.44%0.85%-10.01%
67
Neutral
$24.12B43.7032.41%0.14%-6.13%-53.35%
63
Neutral
$34.93B5.90-12.00%2.00%5.61%-19.55%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRMB
Trimble
84.69
30.49
56.25%
FLEX
Flex
51.80
20.56
65.81%
JBL
Jabil
230.38
121.29
111.18%
TDY
Teledyne Technologies
552.48
128.50
30.31%
KEYS
Keysight Technologies
167.01
31.06
22.85%
FTV
Fortive
50.92
-2.49
-4.66%

Trimble Corporate Events

Executive/Board ChangesShareholder Meetings
Trimble Holds Annual Stockholders’ Meeting, Elects Directors
Neutral
Jun 18, 2025

On June 17, 2025, Trimble Inc. held its annual stockholders’ meeting where key proposals were voted on. The election of directors saw James C. Dalton, Borje Ekholm, Kaigham Gabriel, and others elected for the upcoming year. Additionally, the advisory vote on executive compensation was approved, and KPMG’s appointment as the independent registered public accounting firm for the fiscal year ending January 2, 2026, was ratified. These decisions reflect ongoing shareholder support and strategic continuity for Trimble’s leadership and financial oversight.

The most recent analyst rating on (TRMB) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Trimble stock, see the TRMB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 05, 2025