From Yahoo Finance: 2025-05-25 10:05:00

Trimble (TRMB) is seeing a rise in margins and recurring revenue, driven by AI growth and digital technology adoption. The company excels at upselling and cross-selling solutions. With established technology and growth drivers in place, Trimble is a solid growth stock. Its software solutions are becoming crucial in customers’ daily workflows, offering value and partnerships with major hardware manufacturers.

The shift towards recurring revenue from software is boosting Trimble’s profit margins. Net retention in its core segment remains strong, showcasing customer loyalty. AI applications hold promise for further value addition. The company’s mid-teens growth in annualized recurring revenue (ARR) is expected to drive improved free cash flow (FCF) and long-term earnings growth. Investors looking for a growth stock with a solid path ahead might find Trimble appealing.

Considerations before investing in Trimble include its focus on software solutions, increasing FCF, and long-term growth potential. The company’s ability to increase ARR through upselling and cross-selling to a loyal customer base is a key strength. With a strong growth trajectory and promising prospects in AI and analytics, Trimble presents an attractive opportunity for long-term investors seeking diversification.



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