Trend Micro Incorporated
4704・Prime Market・Information & Communication
Business
Trend Micro Incorporated, founded in 1989, is a company listed on the Prime Market of the Tokyo Stock Exchange and specializes exclusively in cybersecurity. Its core business is the development and sale of computer security products and the provision of related services, operating globally across four regional segments: Japan, Americas, Europe, and Asia Pacific. Its main customers include both corporations (businesses and public institutions) and individuals, and it covers multi-layered security domains such as endpoint, network, cloud, and email. Consolidated net sales for FY2025 (ending December 2025) were ¥275,984 million. Research and development is conducted mainly at four locations—Japan, the United States, Australia, and Ireland—while also utilizing outsourcing arrangements in Taiwan and Canada.
Business Model
The company sets continued growth in Annual Recurring Revenue (ARR) as its key management indicator, with a subscription-based revenue structure as its foundation. For enterprise customers, the integrated security platform "Trend Vision One™" serves as the core offering, supporting diverse customer environments through a hybrid configuration of SaaS-based and on-premises deployments. For individual customers, the company leverages sales channels such as mobile phone retail stores. As indicated by deferred revenue (¥236,085 million recorded as a current liability), the structure records unearned revenue at the time of contract execution and recognizes revenue over the contract period, generating stable cash flow.
Company Strengths
Trend Vision One™, an AI-powered integrated enterprise security platform, is deployed by the company. Centered on CREM (Cyber Risk Exposure Management) functionality that integrates security products across multiple domains to centralize threat prediction, detection, and response, AI-Powered Next-Gen SOC Security grew significantly in Japan, Europe, and Asia Pacific.
For FY2025 (ending December 2025), operating profit was ¥57,777 million (up 20.1% year on year), with an operating margin of approximately 20.9%. While revenue growth was limited to 1.2%, the company kept total expenses to ¥218,207 million (down 2.8% year on year), primarily through control of personnel and outsourcing costs, substantially improving profitability. The company has set a target operating margin of 25%–27% for FY2028 (ending December 2028).
At the end of FY2025 (ending December 2025), cash and deposits stood at ¥220,092 million, with cash and deposits plus securities totaling ¥231,030 million. Operating cash flow was positive at ¥64,637 million, an increase of ¥17,855 million year on year. The company has articulated a financial policy aiming for high ROE, underpinned by a business structure that is not capital-intensive.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has consistently trended upward, from ¥190,359 million (FY2021) to ¥275,984 million (FY2025). In Q1 FY2026, revenue reached ¥73,856 million (up 9.4% year on year), with growth accelerating. Europe and Asia Pacific each grew 19.1%, serving as key drivers, aided also by foreign exchange translation effects from yen depreciation. Operating profit came to ¥15,558 million (up 3.7% year on year), securing a profit increase by absorbing higher costs (cost of sales plus SG&A expenses totaling ¥58,297 million, up 11.1%). Ordinary profit rose 42.2% to ¥17,651 million, due to the disappearance of the prior-year foreign exchange loss (an external factor), while profit attributable to owners of parent came to ¥11,775 million (up 32.9% year on year). Full-year forecasts call for revenue of ¥301,500 million (up 9.2% year on year) and operating profit of ¥56,400 million (down 2.4% year on year), based on assumed exchange rates of ¥156 to the US dollar and ¥183 to the euro.
Growth Strategy
Accelerate ARR growth through full transition to the Vision One credit model, targeting full-year revenue of ¥301,500 million
Fully transitioning from individual product-based sales to a credit model that allows flexible use of TrendAI Vision One™ platform functions. This promotes expanded customer usage, driving up the proportion of Vision One ARR and accelerating overall ARR growth. As of the first quarter of FY2026 (ending March 2026), Vision One ARR is growing significantly.
From 2026, the corporate business has been independently branded as "TrendAI" and the consumer business as "TrendLife", enabling strategic development tailored to the characteristics of each business. In the first quarter of FY2026 (ending March 2026), corporate revenue reached ¥59,341 million (up 10.4% year on year) and consumer revenue reached ¥14,515 million (up 5.4% year on year), with both businesses achieving revenue growth.
Against the backdrop of increasingly sophisticated cyber threats driven by the spread of AI, AI-Powered Next-Gen SOC Security built on TrendAI Vision One™ is being rolled out across all regions. In the first quarter of FY2026 (ending March 2026), Europe and Asia Pacific each achieved high growth of 19.1%, functioning as a key growth driver for the corporate business.
Profitability in the consumer business is being improved by reducing discount amounts and guiding customers toward higher-priced products. The impact of the transition to e-commerce business partners in regions outside Japan has largely dissipated, and consumer revenue in the first quarter of FY2026 (ending March 2026) recovered to ¥14,515 million (up 5.4% year on year).
Last updated: July 17, 2026