Trimble’s results for Q2 were driven by continued adoption of its bundled software and cloud-based solutions across construction and logistics. Management attributed the quarter’s performance to expanding recurring revenue, now making up nearly two-thirds of sales, and ongoing business model transformation. CEO Rob Painter highlighted the company’s success in cross-selling new product suites, noting, “Our strategy compels us to do what we can uniquely do, that is connecting people, connecting data, connecting workflows and connecting ecosystems.” Field Systems and AECO segments each contributed to growth, with recurring revenue and subscription uptake offsetting softness in certain hardware markets and U.S. federal spending.
Is now the time to buy TRMB? Find out in our full research report (it’s free).
Trimble (TRMB) Q2 CY2025 Highlights:
- Revenue: $875.7 million vs analyst estimates of $834.8 million (flat year on year, 4.9% beat)
- Adjusted EPS: $0.71 vs analyst estimates of $0.63 (13.6% beat)
- Adjusted EBITDA: $239.9 million vs analyst estimates of $213.8 million (27.4% margin, 12.2% beat)
- The company lifted its revenue guidance for the full year to $3.52 billion at the midpoint from $3.42 billion, a 2.9% increase
- Management raised its full-year Adjusted EPS guidance to $2.98 at the midpoint, a 3.8% increase
- Operating Margin: 14.6%, up from 7.1% in the same quarter last year
- Annual Recurring Revenue: $2.21 billion vs analyst estimates of $2.25 billion (4.6% year-on-year growth, 1.7% miss)
- Organic Revenue rose 8% year on year vs analyst estimates of 6.1% growth (188.3 basis point beat)
- Market Capitalization: $19.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Trimble’s Q2 Earnings Call
- Jonathan Frank Ho (William Blair) asked about Trimble’s data strategy for AI and customer adoption. CEO Rob Painter emphasized unique data scale and early but growing customer demand for AI-driven insights, noting ongoing investment in data governance.
- Kristen Owen (Oppenheimer) questioned cycle times and recurring revenue adoption, particularly for hardware. Painter responded that recurring revenue is growing quickly, with affordability and technology assurance driving uptake, though hardware transitions remain slower than software.
- Zane Meehan (KeyBanc Capital Markets) sought updates on U.S. public sector demand. Painter explained federal sales are down but state-level demand, especially with Departments of Transportation, is a bright spot offsetting federal softness.
- Joshua Alexander Tilton (Wolfe Research) inquired about SketchUp price increases and AECO ARR growth sustainability. Painter said price changes are aimed at optimizing contract mix, while Sawarynski noted ARR growth should remain stable barring unexpected churn.
- Charles Albert Edward Dillard (Bernstein) pressed on AECO customer segments and TC1 adoption. Painter explained enterprise and midmarket customers drive most bookings, but SMB growth rates are highest due to lower market penetration.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) the pace of subscription and bundled suite adoption, especially in international and SMB segments; (2) the impact of AI feature rollouts on customer retention and upsell opportunities; and (3) how Trimble navigates external risks such as tariffs and changing government spending. Additional progress in cloud migration and integration of recent tuck-in acquisitions will also be closely watched.
Trimble currently trades at $84.37, up from $82.76 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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