Update shared on03 Oct 2025
Fair value Increased 3.17%Analysts have raised Trimble’s fair value estimate by $3.00 to $97.75, citing resilient market dynamics and increasing customer demand for software-oriented solutions.
Analyst Commentary
Recent Street research has provided an updated perspective on Trimble’s performance and outlook, highlighting both drivers of optimism and areas for caution among analysts.
Bullish Takeaways- Bullish analysts note increasing customer demand for software-oriented solutions, which is strengthening the company’s transition to recurring revenue streams and supporting higher valuations.
- The company delivered a strong quarter, posting record Q2 annual recurring revenue of $2.21 billion, exceeding earnings-per-share expectations and raising its full-year guidance.
- Macro-level policy developments such as bonus depreciation incentives and anticipated rate cuts from the Federal Reserve are expected to benefit the machinery sector, with Trimble positioned to capitalize on industry outperformance.
- Despite a sector-wide construction downcycle, resilient trends in the architecture, engineering, and construction markets are contributing to sustained strength in Trimble’s core business lines.
- Some analysts remain cautious about persistent macroeconomic headwinds, which continue to impact the broader machinery and construction sectors.
- While recurring software revenues are in focus, any delays in customer transition or adoption could dampen growth momentum in the near term.
- Uncertainties related to global tariff changes and the timing of anticipated interest rate cuts may present risks to both sector and company execution in the coming quarters.
What's in the News
- Vermeer and Trimble announced new automation features for Vermeer PD10R and PD25R pile drivers. These features allow operators to complete pile driving with increased accuracy and efficiency using the Trimble Groundworks machine control system. (Client Announcement)
- Looq AI's photogrammetric data platform now integrates with Trimble Business Center software. This integration gives engineers and surveyors streamlined access to survey-grade point clouds and orthoimages for faster, more accurate results. (Client Announcement)
- Render Networks integrated Trimble Mobile Manager, enabling broadband and utility network projects to benefit from Trimble's centimeter-level GNSS positioning for faster, verifiable as-built records. (Client Announcement)
- KOBELCO Construction Machinery U.S.A. began offering Trimble Earthworks 2D grade control systems through select dealers, enhancing excavator productivity and jobsite precision with new certified programs and training. (Client Announcement)
- Trimble welcomes Procter & Gamble as the first Trimble Freight Marketplace shipper in North America. This expands its digital freight procurement platform and carrier network in the U.S. market. (Product-Related Announcement)
Valuation Changes
- Fair Value Estimate: Increased from $94.75 to $97.75, reflecting updated market expectations.
- Discount Rate: Risen slightly from 8.37% to 8.43%, suggesting a modestly higher required return for shareholders.
- Revenue Growth: Upgraded from 4.26% to 5.65%, indicating greater anticipated top-line expansion.
- Net Profit Margin: Declined from 19.16% to 15.70%, reflecting moderated profitability forecasts.
- Future P/E Ratio: Increased from 33.39x to 40.47x, suggesting a higher valuation multiple based on forward earnings.
Disclaimer
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