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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)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
$89.00
▲(9.55% Upside)
Trimble's strong earnings call performance and robust financial position are the primary drivers of its stock score. The company's strategic focus on AI and subscription models supports its positive outlook. However, high valuation and mixed technical indicators present potential risks. Continued revenue growth and cash flow improvement will be crucial for sustaining long-term performance.
Positive Factors
Software and Services Growth
The significant contribution of software and services to revenue highlights Trimble's successful transition to a recurring revenue model, providing stability and predictability in cash flows, which is crucial for long-term growth and resilience against market fluctuations.
Strong Financial Performance
The robust organic revenue and EPS growth indicate effective business strategies and operational efficiency, enhancing Trimble's competitive position and ability to invest in future growth opportunities.
Low Leverage
Low leverage provides Trimble with financial flexibility to pursue strategic initiatives and weather economic downturns, supporting sustainable long-term growth and stability.
Negative Factors
Federal Business Decline
The decline in federal business sales could impact Trimble's revenue diversification and growth potential, as reliance on fewer segments may increase vulnerability to sector-specific risks.
Macro Uncertainty and Tariffs
Macroeconomic uncertainties and tariffs introduce cost pressures and operational challenges, potentially affecting profitability and strategic planning, thus impacting long-term business stability.
Revenue Decline
A decline in revenue, even if slight, can signal challenges in market demand or competitive pressures, necessitating strategic adjustments to sustain long-term growth and profitability.

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

Trimble Business Overview & Revenue Model

Company DescriptionTrimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for route selection and design; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Sunnyvale, California.
How the Company Makes MoneyTrimble generates revenue through a diversified model that includes hardware sales, software licenses, subscription services, and professional services. The company sells a range of hardware products, including GPS receivers, laser systems, and surveying equipment, which contribute significantly to its revenue. Additionally, Trimble has a robust software segment that includes both one-time license fees and recurring subscription revenues for its cloud-based solutions. Professional services, such as consulting and training, also play a role in revenue generation. Strategic partnerships with industry leaders and integration with third-party platforms enhance Trimble's market reach and contribute to its earnings, allowing the company to leverage its technology across various sectors.

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:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
Trimble's earnings call highlighted strong financial performance, growth in key segments like AECO and Field Systems, and a positive outlook for the future. Despite challenges in the federal business and macroeconomic uncertainties, the company remains confident and raised its financial guidance.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Trimble reported $876 million in revenue, up 9% organically, and an EPS of $0.71, up 15% year-over-year. ARR reached $2.21 billion, up 14% organically.
Software and Services Growth
Software and services accounted for 79% of second-quarter revenue, with recurring revenue making up 63% of total revenue.
AECO Segment Success
ARR in the AECO segment reached $1.36 billion with 16% growth, marking strong performance and ongoing growth potential.
Field Systems and Machine Control
Field Systems revenue was $393 million, up 3%, with ARR growth at 17%, driven by the Works Plus machine control offering.
Transportation and Logistics Expansion
Revenue and ARR in the Transportation and Logistics segment were both up 8%, with ACV bookings up double digits.
Positive Future Outlook
Trimble raised its full-year revenue guidance by $100 million and EPS guidance by $0.11, reflecting confidence in ongoing performance.
Negative Updates
Federal Business Decline
Federal business sales were significantly down year-over-year, particularly affecting the Field Systems segment.
Macro Uncertainty and Tariffs
Ongoing macroeconomic uncertainties and tariffs pose challenges, with an approximate $10 million quarterly impact on Field Systems.
Company Guidance
During Trimble's second quarter 2025 financial results call, the company highlighted a strong performance with revenue reaching $876 million, marking a 9% organic increase. The annual recurring revenue (ARR) grew to $2.21 billion, reflecting a 14% organic rise, while earnings per share (EPS) increased by 15% year-over-year to $0.71. Software and services constituted 79% of the quarter's revenue, with recurring revenue accounting for 63%. The firm's EBITDA margin expanded to 27.4%, a 170 basis point increase. Trimble's long-term goals include achieving $3 billion in ARR, $4 billion in revenue, and a 30% EBITDA margin by 2027. The company is optimistic about its AI-driven future, having processed over 1.5 million drawings with AI in its ProjectSight system since late 2024. Trimble's strategic initiatives, such as bundling solutions and transitioning to subscription models, are expanding its user base and enhancing business visibility. The company raised its full-year 2025 guidance, setting expectations for as-reported revenue of $3.52 billion and EPS of $2.98.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.57B3.68B3.80B3.68B3.66B3.15B
Gross Profit2.36B2.40B2.33B2.11B2.03B1.75B
EBITDA585.60M2.33B768.60M747.40M845.80M692.90M
Net Income1.51B1.50B311.30M449.70M492.80M389.90M
Balance Sheet
Total Assets8.90B9.49B9.54B7.27B7.10B6.88B
Cash, Cash Equivalents and Short-Term Investments290.00M738.80M229.80M271.00M325.70M237.70M
Total Debt1.39B1.51B3.19B1.63B1.41B1.66B
Total Liabilities3.48B3.74B5.04B3.22B3.15B3.28B
Stockholders Equity5.42B5.75B4.50B4.05B3.94B3.60B
Cash Flow
Free Cash Flow419.80M497.80M555.10M348.00M704.40M615.20M
Operating Cash Flow453.20M531.40M597.10M391.20M750.50M672.00M
Investing Cash Flow1.85B1.86B-2.07B-226.30M-203.50M-231.80M
Financing Cash Flow-2.27B-1.86B1.43B-199.00M-447.70M-400.30M

Trimble Technical Analysis

Technical Analysis Sentiment
Positive
Last Price81.24
Price Trends
50DMA
82.07
Negative
100DMA
77.94
Positive
200DMA
73.51
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
52.98
Neutral
STOCH
56.67
Neutral
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 81.24 is above the 20-day moving average (MA) of 80.80, below the 50-day MA of 82.07, and above the 200-day MA of 73.51, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$27.06B31.798.28%6.47%-1.48%
75
Outperform
$16.42B21.917.41%0.58%-0.12%-11.27%
74
Outperform
$29.79B55.229.59%4.80%-39.55%
74
Outperform
$21.34B24.9717.51%-3.63%2.26%
70
Outperform
$19.33B69.375.06%-3.72%-80.83%
68
Neutral
$23.16B36.4644.90%0.15%3.18%-46.01%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TRMB
Trimble
81.24
19.15
30.84%
FLEX
Flex
57.55
24.12
72.15%
JBL
Jabil
215.84
96.24
80.47%
TDY
Teledyne Technologies
579.35
141.69
32.37%
KEYS
Keysight Technologies
173.28
14.35
9.03%
FTV
Fortive
48.91
-10.29
-17.38%

Trimble Corporate Events

Business Operations and StrategyExecutive/Board Changes
Trimble Announces Leadership Changes Amid Digital Strategy
Neutral
Aug 18, 2025

Trimble announced executive-level leadership changes on August 18, 2025, with the retirement of Chief Accounting Officer Julie Shepard in early 2026 after over 18 years of service. Kenny Bement will succeed her in September 2025, bringing extensive experience in financial reporting and compliance. Additionally, Jim Palermo has been appointed as the new Chief Information Officer to support Trimble’s Connect and Scale digital transformation strategy. These changes aim to enhance Trimble’s operational efficiency and strategic focus.

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: Sep 27, 2025