Trimble Inc. (TRMB) has underperformed the broader Nasdaq Composite index over the past 12 months, posting a 12.3% return compared to the Nasdaq's 23.7% gain. The divergence highlights sector-specific pressures despite Trimble’s leadership in construction technology and geospatial software.
- Trimble stock rose 12.3% over the past 12 months, lagging the Nasdaq Composite's 23.7% gain
- Trimble reported $2.1 billion in revenue for fiscal 2024, up 7.9% year-over-year
- Enterprise software segment accounted for 52% of revenue and grew 9.4% YoY
- Average sales cycle lengthened to 11.4 months in 2024 from 8.7 months in 2022
- Trimble’s forward P/E ratio is 26.3, below the Nasdaq’s average of 31.2
- Operating margin declined to 39.1% in FY2024 from 41.5% in FY2023
Trimble Inc. (TRMB) has lagged behind the Nasdaq Composite index over the past year, with its stock returning 12.3% compared to the Nasdaq’s 23.7% rise. This underperformance is notable given Trimble’s established position in high-precision hardware and software solutions for construction, agriculture, and transportation sectors. The company reported $2.1 billion in revenue for fiscal 2024, with a 7.9% year-over-year increase, yet investor sentiment has remained muted amid macroeconomic uncertainty and slower-than-expected enterprise adoption in key markets. The contrast is starker when examining quarterly performance: Trimble’s Q3 2024 earnings per share of $0.98 exceeded analyst expectations by $0.06, yet the stock declined 4.2% in after-hours trading. This reaction underscores investor skepticism about the sustainability of growth in capital-intensive industries, particularly as interest rates remain elevated. Meanwhile, the Nasdaq has benefited from strong gains in AI-driven software and cloud infrastructure firms, sectors not directly aligned with Trimble’s core offerings. Trimble’s enterprise software segment, which accounts for 52% of total revenue, grew 9.4% year-over-year, suggesting underlying demand remains robust. However, the company’s enterprise sales cycle has lengthened, with average deal duration rising from 8.7 months in 2022 to 11.4 months in 2024, affecting near-term visibility. In contrast, the Nasdaq’s broader momentum reflects strong performance across semiconductor, fintech, and digital infrastructure stocks, which have seen accelerated investment in automation and data analytics. Investors are now assessing Trimble’s ability to scale its digital platform offerings and improve margins, which stood at 39.1% in FY2024—down from 41.5% the prior year. The company’s forward P/E ratio of 26.3 is modest compared to the Nasdaq’s average of 31.2, suggesting potential undervaluation. Still, the stock’s relative weakness may persist unless Trimble demonstrates clearer pathways to accelerating revenue growth in its core markets.