Update shared on 17 Dec 2025
Fair value Increased 0.054%Analysts slightly raised their price target on Trane Technologies by approximately 0.1 percent to about $482 per share, citing modest improvements in long term profit margin expectations and a marginally higher forward earnings multiple, despite largely unchanged growth and discount rate assumptions.
What's in the News
- Trane Technologies completed the acquisition of BrainBox AI, expanding its AI driven building decarbonization and energy optimization capabilities after more than two years of prior collaboration.
- In partnership with Amazon and AWS, BrainBox AI technology delivered nearly 15% energy use reductions at three Amazon Grocery fulfillment facilities in North America, with rollout planned to more than 30 additional sites and pilots in grocery stores beginning in 2026 (client announcement).
- The company launched the industry's first comprehensive thermal management system reference design for NVIDIA Omniverse DSX gigawatt scale AI data centers, addressing power, water, and land constraints while supporting NVIDIA GB300 NVL72 and future Blackwell and Vera Rubin platforms (product announcement).
- Management issued 2025 guidance calling for approximately 7% reported revenue growth, including about 6% organic growth, and GAAP continuing EPS of roughly 13.15 to 13.25 per share, supported by continued Commercial HVAC strength (guidance).
- Trane Technologies completed two share repurchase tranches in 2025, buying back in aggregate more than 9.7 million shares for over 3.1 billion dollars under programs announced in 2022 and 2024 (buyback updates).
Valuation Changes
- The fair value estimate has risen slightly to approximately $482.28 per share from about $482.02 per share, reflecting a minimal upward revision.
- The discount rate has increased marginally to about 8.99 percent from roughly 8.98 percent, indicating a very small change in the risk assumption.
- Revenue growth has edged down slightly to approximately 6.35 percent from about 6.35 percent, effectively unchanged in the medium-term outlook.
- The net profit margin has risen very slightly to around 15.20 percent from approximately 15.20 percent, signaling a modest improvement in long-term profitability expectations.
- The future P/E has increased marginally to about 34.71x from roughly 34.68x, implying a slightly higher valuation multiple on forward earnings.
Have other thoughts on Trane Technologies?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.