Trimble (TRMB) Stock Forecast & Price Target

Trimble is showing durable fundamental momentum, with 2Q26 revenue of $972M beating consensus by $22M and ARR rising to $2.509B, up 12% organically, while adjusted EBITDA reached about $278M with a 28.6% margin and 120bps of year-over-year expansion. Its core growth engines remain intact, led by AECO’s 14% organic ARR growth, Field Systems’ 12% growth, and 10% organic revenue growth overall, alongside FY26 guidance raised to 8%-10% organic revenue growth and maintained at 12%-14% organic ARR growth. The outlook is further supported by early achievement of margin goals, a confirmed strategic review of Transportation & Logistics, and the view that Trimble is a $2B ARR business growing low-to-mid teens with 30-handle operating margins.

Trimble is facing a softer valuation backdrop as its price target is reduced to $87 from $97, reflecting a lower 18x FCF terminal multiple versus 20x previously. The key driver behind the more cautious stance is continued compression in software multiples, which suggests the market is assigning less premium to recurring-growth businesses even within Trimble’s mix of AECO, Field Systems, and T&L. That multiple pressure implies weaker investor confidence in future cash flow durability and limits upside despite Trimble’s broad technology platform.