Trend Micro (4704) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered record-high operating and ordinary income, with net sales up 1% year-over-year and operating margin at 23%.

• Enterprise segment net sales grew 4% year-over-year, while consumer segment declined 9%, but Beyond Device Protection sales surged 38%.

• Vision One platform adoption accelerated, reaching 11,200 customers, 74% YoY ARR growth, and a 46% attach rate among enterprise customers.

• Cost controls in personnel, outsourcing, and cloud costs improved profitability despite stagnant sales.

• Cash and cash equivalents increased significantly, with strong operating cash flow and higher retained earnings.

Financial highlights

• Q3 2025 net sales: ¥68,844 million (+1% YoY); operating income: ¥16,001 million (+8% YoY); net income: ¥12,606 million (+48% YoY); ordinary income: ¥18,041 million (+51% YoY).

• Operating income up 13.3% year-over-year for the nine months ended September 30, 2025.

• Pre-GAAP operating income up 31% YoY; pre-GAAP margin improved to 23% in Q3 2025.

• Cash and cash equivalents at quarter-end: ¥210,633 million, up 18% from June 2025.

• Net income per share (basic) was ¥204.86, up from ¥198.48 in the prior year.

Outlook and guidance

• FY2025 full-year guidance maintained: net sales ¥274,000 million (+0.5%), operating income ¥53,600 million (+11.4%), net income ¥30,200 million (−12.1%).

• Revenue and operating income are tracking ahead of plan, with management confident in achieving targets.

• Main assumed exchange rates: 1 USD = ¥147, 1 EUR = ¥172.