Geospatial technology provider Trimble (NASDAQ:TRMB) reported Q4 CY2025 results exceeding the market’s revenue expectations, but sales fell by 1.4% year on year to $969.8 million. Guidance for next quarter’s revenue was better than expected at $905.5 million at the midpoint, 1% above analysts’ estimates. Its non-GAAP profit of $1 per share was 4.1% above analysts’ consensus estimates.
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Trimble (TRMB) Q4 CY2025 Highlights:
- Revenue: $969.8 million vs analyst estimates of $947.8 million (1.4% year-on-year decline, 2.3% beat)
- Adjusted EPS: $1 vs analyst estimates of $0.96 (4.1% beat)
- Revenue Guidance for Q1 CY2026 is $905.5 million at the midpoint, above analyst estimates of $896.4 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $3.52 at the midpoint, beating analyst estimates by 1.8%
- Operating Margin: 22.3%, up from 17.6% in the same quarter last year
- Free Cash Flow Margin: 16%, up from 11.1% in the same quarter last year
- Organic Revenue rose 4% year on year (beat)
- Market Capitalization: $15.92 billion
"Our fourth quarter results surpassed expectations on both top and bottom lines, punctuating a strong close to 2025 and positioning us well to deliver on our 2027 financial targets," said Rob Painter, president and CEO of Trimble.
Company Overview
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ:TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Trimble grew its sales at a sluggish 2.6% compounded annual growth rate. This was below our standards and is a tough starting point for our analysis.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Trimble’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.8% annually. 
We can better understand the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Trimble’s organic revenue averaged 5.6% year-on-year growth. Because this number is better than its two-year revenue growth, we can see that some mixture of divestitures and foreign exchange rates dampened its headline results. 
This quarter, Trimble’s revenue fell by 1.4% year on year to $969.8 million but beat Wall Street’s estimates by 2.3%. Company management is currently guiding for a 7.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.1% over the next 12 months. Although this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Trimble has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 14%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Trimble’s operating margin rose by 1.2 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q4, Trimble generated an operating margin profit margin of 22.3%, up 4.7 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Trimble’s EPS grew at an unimpressive 7.1% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 2.6% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Trimble’s earnings to better understand the drivers of its performance. As we mentioned earlier, Trimble’s operating margin expanded by 1.2 percentage points over the last five years. On top of that, its share count shrank by 5.4%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Trimble, its two-year annual EPS growth of 8.3% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point.
In Q4, Trimble reported adjusted EPS of $1, up from $0.89 in the same quarter last year. This print beat analysts’ estimates by 4.1%. Over the next 12 months, Wall Street expects Trimble’s full-year EPS of $3.13 to grow 9.8%.
Key Takeaways from Trimble’s Q4 Results
We enjoyed seeing Trimble beat analysts’ revenue expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $66.93 immediately after reporting.
So do we think Trimble is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
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