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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $99.00 price target on Trimble Navigation (NASDAQ:TRMB), highlighting the company’s strong third-quarter performance. The stock currently trades at $80.57, with analysts maintaining a Strong Buy consensus and targets ranging from $93 to $105. According to InvestingPro data, Trimble appears slightly overvalued compared to its Fair Value.
The research firm noted that Trimble’s annual recurring revenue (ARR) grew 6% year-over-year to $2.3 billion in the third quarter, an improvement from the 5% growth recorded in the second quarter of 2025.
This ARR growth helped drive Trimble’s gross margins to nearly 69%, positioning the company well to achieve its exit rate target of 70%, according to Bernstein’s analysis. InvestingPro data confirms this with a precise gross profit margin of 69.58% in the last twelve months, while also revealing that management has been aggressively buying back shares.
The firm also pointed out that Trimble is achieving these results more efficiently, with the ARR/Opex margin increasing to almost 5.5x, compared to approximately 5x in both the second quarter of 2025 and third quarter of 2024.
Bernstein added that Trimble’s management remains confident in continued ARR growth, citing strength across the portfolio, effective go-to-market strategy, and cross-selling opportunities, while also noting reduced hardware intensity from 37% in the first three quarters of 2024 to 33% in 2025.
In other recent news, Trimble Inc. reported its third-quarter earnings for 2025, surpassing expectations. The company achieved an earnings per share (EPS) of $0.81, exceeding the forecasted $0.72. Trimble’s revenue for the quarter reached $901 million, which was above the anticipated $870.64 million. These results indicate a strong performance by the company, as reflected in the earnings and revenue figures. Additionally, following the earnings announcement, there was a notable reaction from investors. The positive earnings report could influence future analyst assessments and investor sentiment. As these developments unfold, Trimble continues to be a company of interest for investors.
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