Trend Micro (4704) investor relations material

Executive summary

• Emphasis on AI-driven transformation and platform strategy, with reorganization into Trend AI, Trend Life, VicOne, and Magna AI to address specialized market needs.

• Achieved record quarterly and annual net revenues and operating income for FY2025, with Q4 net sales up 5% and full-year net sales up 1.2%.

• Operating income margin improved to 21% for the year, driven by cost controls and strong enterprise performance.

• Vision One platform sales now represent a significant portion of revenue, driving growth in enterprise ARR and customer value.

• Enterprise segment drove growth, while consumer segment faced headwinds with declining sales in some regions.

Financial highlights

• FY2025 net sales: ¥275,984M (+1.2% YoY); operating income: ¥57,777M (+20.1% YoY); net income: ¥34,523M (+0.5% YoY).

• Q4 2025 net sales: ¥73,230M (+5% YoY); operating income: ¥13,303M (+50% YoY); net income: ¥7,580M (-5% YoY).

• Total recurring revenue at $1.7 billion, up 1% year-over-year; enterprise recurring revenue at $1.3 billion, up 2%.

• Consumer segment saw $32 million in revenue, up 11% year-over-year, with recovery after e-commerce provider bankruptcy.

• Cash and cash equivalents at year-end: ¥230,458M (+23% YoY).

Outlook and guidance

• FY2026 guidance: net sales ¥301,500M (+9.2% YoY), operating income ¥56,400M (-2.4% YoY), net income ¥36,600M (+6% YoY).

• 2026 targets: ARR growth of 13%, net sales growth of 9%, and a 2% decline in operating income due to increased investment.

• Trend AI targeting 15% ARR growth, Trend Life targeting 6% ARR growth, and hyper-growth segments expecting substantial ARR increases.

• Sales growth expected in all regions, with Americas and Europe forecasted to grow ~10% and Asia Pacific in the mid-teens.

• Operating margin expected to temporarily decline as costs rise faster than sales due to upfront investments.