Core Insights - Trimble Inc. is valued at a market cap of $19.2 billion and specializes in advanced positioning, modeling, and data analytics solutions across various industries [1] Performance Overview - Trimble's stock has underperformed compared to the broader market, gaining 8.5% over the past 52 weeks, while the S&P 500 Index increased by 13.4% [2] - Year-to-date, Trimble's stock is up 11.6%, compared to the S&P 500's 14.3% return [2] - The company has also lagged behind the Technology Select Sector SPDR Fund, which saw a 23.9% increase over the past 52 weeks and a 24.4% rise year-to-date [3] Recent Financial Results - Trimble's shares rose 2.5% following stronger-than-expected Q3 results reported on November 5 [4] - The company achieved a record Q3 gross margin of 68.9% and annualized recurring revenue of $2.3 billion [4] - Total revenue for Q3 improved by 2.9% year-over-year to $901.2 million, surpassing consensus estimates by 3.4% [4] - Adjusted EPS for the quarter was $0.81, reflecting a 15.7% increase from the previous year and exceeding analyst expectations by 12.5% [4] - Trimble raised its fiscal 2025 guidance, indicating strong progress under its Connect & Scale strategy [4] Analyst Expectations - For the current fiscal year ending in December, analysts expect Trimble's EPS to grow by 10.4% year-over-year to $2.44 [5] - The company's earnings surprise history is mixed, with three out of the last four quarters exceeding consensus estimates [5] - Among 13 analysts covering Trimble, the consensus rating is a "Strong Buy," with nine "Strong Buy," one "Moderate Buy," and three "Hold" ratings [5] Analyst Ratings and Price Targets - The analyst configuration has become slightly more bullish, with eight analysts suggesting a "Strong Buy" rating [6] - On November 6, Oppenheimer Holdings maintained a "Buy" rating on Trimble with a price target of $102, indicating a potential upside of 29.4% from current levels [6]

Core Insights - Trimble Inc. reported record annualized recurring revenue of $2.21 billion for Q2 2025, exceeding expectations on both revenue and earnings, indicating strong business momentum and validation of its Connect & Scale strategy [2][9] - The company raised its full-year 2025 revenue guidance to a range of $3,480 million to $3,560 million, reflecting positive performance in the first half of the year [3][9] Financial Performance - Q2 2025 revenue was $875.7 million, a 1% increase year-over-year and an 8% increase on an organic basis [9] - GAAP operating income for Q2 2025 was $127.8 million, representing 14.6% of revenue, while non-GAAP operating income was $222.6 million, or 25.4% of revenue [9] - GAAP net income was $89.2 million, with diluted earnings per share (EPS) of $0.37; non-GAAP net income was $169.4 million, with non-GAAP diluted EPS of $0.71 [9] Guidance and Expectations - For Q3 2025, Trimble expects revenue between $850 million and $890 million, with GAAP EPS projected at $0.34 to $0.43 and non-GAAP EPS at $0.67 to $0.75 [4] - The full-year 2025 guidance assumes a tax rate of 21.0% for GAAP and 17.4% for non-GAAP, with approximately 242 million shares outstanding [3][4] Segment Performance - The company reported segment revenues of $350.3 million for AECO, $392.7 million for Field Systems, and $132.7 million for T&L in Q2 2025 [15] - Operating income percentages for segments were 30.4% for AECO, 30.8% for Field Systems, and 21.6% for T&L [15] Cash Flow and Capital Management - Trimble generated $102.1 million in net cash from operating activities in the first half of 2025, with free cash flow of $89.6 million [14][28] - The company repurchased $50 million of its common stock in Q2 2025, totaling $677.4 million year-to-date [9]