Trimble (TRMB) Up 3.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Trimble Navigation (TRMB). Shares have added about 3.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Trimble due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Trimble Q4 Earnings Beat Estimates, Revenues Fall Y/Y

Trimble reported fourth-quarter 2025 non-GAAP earnings of $1.00 per share, which surpassed the Zacks Consensus Estimate by 4.2% and increased 12.4% on a year-over-year basis.

Revenues of $969.8 million beat the Zacks Consensus Estimate by 2% but decreased 1.4% year over year (up 10% on an organic basis). Product revenues (27.7% to total revenues) totaled $268.3 million, down 7.1% on a year-over-year basis. Subscription and services revenues (72.3% of total revenues) increased 1% year over year to $701.5 million.

Annualized Recurring Revenues (ARR) of $2.39 billion increased 6% on a year-over-year basis (up 14% on an organic basis).

TRMB Q4 Top-line Details

The AECO (Architecture, Engineering, Construction, and Owners) segment revenues (47% of total revenues) were $454.4 million, up 9.8% year over year. The AECO segment delivered 16% year-over-year organic growth in ARR.

Field Systems revenues (39% of total revenues) of $378.9 million increased 4.4% year over year on an organic basis and 4.4% on a reported basis. The segment saw 20% organic ARR growth in the reported quarter.

Transportation & Logistics (T&L) revenues (14.1% of total revenues) of $136.5 million declined 34% year over year. The segment registered 7% adjusted organic ARR growth.

TRMB’s Q4 Operating Details

In the fourth quarter of 2025, non-GAAP gross margin was 74.6%, expanding 260 basis points (bps) year over year.

Adjusted EBITDA was $324.8 million with adjusted EBITDA margin of 33.5%, up 320 bps year over year.

On a non-GAAP basis, operating expenses accounted for 42.3% of revenues, down 60 bps year over year.

Non-GAAP operating margin was 32.3%, which expanded 340 bps year over year. AECO operating margin of 44.1% expanded 330 bps year over year. Field Systems operating margin contracted 40 bps year over year to 30%. T&L operating margin expanded 260 bps year over year to 22.9% in the reported quarter.

TRMB’s Balance Sheet Details

At the end of fourth-quarter 2025, cash and cash equivalents were $253.4 million, up from $232.7 million at the end of third-quarter 2025.

Total debt was $1.39 billion at the end of the third quarter unchanged sequentially.

The company bought shares worth $148.1 million in the reported quarter.

TRMB Offers Positive Guidance

For the first quarter of 2026, Trimble expects revenues to be in the range of $893-$918 million. The company expects non-GAAP earnings to be in the band of 69-74 cents per share.

For 2026, Trimble expects revenues to be between $3.81 billion and $3.91 billion. The company expects 2026 non-GAAP earnings to be in the range of $3.42-$3.62 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Trimble has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Trimble has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Trimble belongs to the Zacks Manufacturing - General Industrial industry. Another stock from the same industry, RBC Bearings (RBC), has gained 1.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

RBC Bearings reported revenues of $461.6 million in the last reported quarter, representing a year-over-year change of +17%. EPS of $3.04 for the same period compares with $2.34 a year ago.

For the current quarter, RBC Bearings is expected to post earnings of $3.32 per share, indicating a change of +17.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.

RBC Bearings has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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