Trend Micro (4704) Q3 2026 earnings summary

Executive summary

• Record Q3 sales and stronger TrendAI ARR growth were offset by higher expenses, lowering operating and net income.

• Transformation priorities center on ARR growth, Vision One adoption and the TrendAI, TrendLife and incubation businesses; investment and organizational changes continue.

Financial highlights

• Q3 net sales were ¥75,317M (+9% reported; +3% at constant currency); operating income was ¥13,231M (-17%) and net income ¥8,609M (-32%).

• 9M net sales rose 10.4% to ¥223,913M; operating income fell 21.2% to ¥35,023M amid higher personnel, cloud and brand-promotion costs.

• 9M ordinary income fell 5.0% to ¥37,522M and parent-attributable net income fell 11.5% to ¥23,839M.

• Total ARR was $1.76B at Q3-end, up 6% YoY; operating margin was 18%, or 19% excluding incubation.

• Q3 operating cash flow was ¥6,164M, down 64% YoY; cash flow was affected by AWS payment timing and lower operating profit.

Outlook and guidance

• FY2026 guidance unchanged: net sales ¥301,500M (+9.2%), operating income ¥44,400M (-23.2%), ordinary income ¥46,000M (-14.8%) and net income ¥30,700M (-11.1%).

• Guidance assumes 2H rates of ¥156/USD and ¥183/EUR; sales growth excluding FX impact is estimated at 6%.

• Q4 TrendAI ARR is expected to exceed Q3, with further improvement anticipated; no specific Q4 or next-fiscal-year ARR figure was given.

• The Road to 2028 operating-margin target of 28%–31% remains; guidance will be annual, with no extension of the three-year roadmap.