Slide 1: Trend Micro FY2026 Q1 Results
Trend Micro FY2026 Q1 Results Mahendra Negi CFO, Representative Director May 14, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Certain Statements that we make in this presentation are forward-looking statements. These forward-looking statements are based upon management’s current assumptions and beliefs in light of the information currently available to it, but involve known and unknown risks and
Slide 3: FY2026.Q1 Financial Highlight
FY2026.Q1 Financial Highlight (First quarter ended Mar 31, 2026)
Slide 4: Quarterly presentation update
Quarterly presentation update Change in the nature of business • Trend AI / Trend Life have diverging strategies, subscription business is prioritized over perpetual licensing – Thus focus shifting to ARR instead of gross sales • Investment in new “internal start ups” resulting in increase in cost o
Slide 5: Q1 Consolidated Results
Q1 Consolidated Results (unaudited) (in million Yen) Three months YoY ended Mar 31, 1Q2025 1Q2026 growth Net sales 67,501 73,856 + 9% Total Operating expenses 52,495 58,297 + 11% Operating income (Margin) 15,006 (22%) 15,558 (21%) + 4% Ordinary income 12,408 17,651 + 42% Net income 8,858 11,775 + 33
Slide 6: Progress (3 months)
Progress （3 months） (in million Yen) Revenue Operating Income 350,000 60,000 57,777 (Forecast) 301,500 56,400 300,000 50,000 (Forecast) 250,000 275,984 44,474 40,000 200,000 202,753 30,000 (Progress of 28,472 150,000 Forecast: 28%) (Progress of Forecast: 24%) 133,909 20,000 100,000 73,856 15,558 (Pr
Slide 7: Comparison of Operating income after adjusting for stock option related costs
(Reference) Comparison of Operating income after adjusting for stock option related costs due to the stock price decline Due to the significant drop in our stock price from Dec. in 2025 to Mar. in 2026 (from 6,502 yen at the end of 25Q4 to 5,240 yen at the end of 26Q1, Down 1,262 yen), stock option
Slide 8: TrendAI ARR (Non-GAAP)
(USD) TrendAI ARR (Non-GAAP) *ARR at constant currency: (1USD= 155.95yen as the company internal budget exchange rate for FY2026). The amounts are updated annually each fiscal year. Non-GAAP and reference for internal management. Therefore, they may be subject to so changes hereafter. TrendAI compos
Slide 9: TrendAI ARR by Region (Non-GAAP)
TrendAI ARR by Region (Non-GAAP) 25Q1 25Q4 26Q1 QoQ YoY Japan $243M $248M $249M +0% +2% Americas $293M $291M $290M -0% -1％ Europe $381M $392M $397M +1% +4％ AMEA $363M $397M $399M +1% +10％ Total $1,280M $1,328M $1,335M +0％ +4% *ARR at constant currency: (1USD= 155.95yen as the company internal budget
Slide 10: Cash flows
Cash flows (unaudited) (in million Yen) 1Q2025 1Q2026 YoY growth Cash flows from operating activities 18,793 29,583 + 57% Cash flows from investing activities - 19,243 - 19,243 － Cash flows from financing activities - 20,669 - 28,277 － Effect of exchange rate changes - 4,718 2,612 － on cash and cash
Slide 11: Headcount
Headcount Dec - 2025 Mar - 2026 6,717 6,760 Admin, Business Admin, Business Process, Process, 783 764 Sales, Marketing, Sales, Marketing, Technical Technical 2,309 2,300 Support, Support, 1,406 1,553 Research, Research, Development, Development, 2,228 + 43 2,134 (+ 1%) Japan, Japan, 740 719 Europe,
Slide 12: Cost (Non-GAAP)
(in million Yen) Salary & Benefit Office Overhead Cost (Non-GAAP) (unaudited) ・Of 5.8 bn JPY YoY increase, estimated impact of Outside Service Cloud Administration Selling & Marketing yen depreciation, about +2.9 bn JPY. 65,000 Stock Options / Acquisiton Related Costs Goods/Software Amortization & C
Slide 13: Q1 Highlights
Q1 Highlights • Highest-ever Quarterly Net Sales • Highest ever Q1 Operating income and Net income 13
Slide 14: FY2026 Guidance
FY2026 Guidance
Slide 15: Guidance for FY2026 Annual (Unchanged)
Guidance for FY2026 Annual (Unchanged) (in million Yen) For FY2026 Expected Jan - Dec, 2026 YoY growth Net Sales 301,500 + 9% Operating Income “Margin” 56,400 “19%” - 2% Ordinary Income 55,100 + 2% Net Income 36,600 + 6% attributable to owners of the parent (Estimated annual exchange rate 1USD=156 y
Slide 16: Appendix for FY2026.Q1
Appendix for FY2026.Q1
Slide 17: Q1 USD based Results (Non-GAAP)
Q1 USD based Results (Non-GAAP) (unaudited) (in thousand USD) Three months ended Mar 31, 1Q2025 1Q2026 YoY change Net sales 442,345 470,663 + 6% Cost of sales 107,582 106,367 - 1% Operating expenses 236,421 265,145 + 12% Operating income 98,341 99,149 + 1% Ordinary income 81,316 112,487 + 38% Net In
Slide 18: Net Sales Growth by Region
(in million Yen) Net Sales Growth by Region + 0% 2025Q1 25,000 22,072 22,136 2026Q1 + 19% + 19% 20,231 20,000 + 2% 16,990 16,993 14,174 14,498 15,000 14,261 10,000 5,000 0 Japan Americas Europe APAC, MEA
Slide 19: Net Sales Growth by Region (constant currency)
Net Sales Growth by Region (unaudited) (in million Yen) If currency exchange rates used for 1Q2025 were used for 1Q2026: 2025Q1 25,000 + 0% * ( ) : difference from GAAP base 22,072 22,136 (0) 2026Q1 + 10% (- 1,495) 20,000 - 3% + 4% 18,735 (- 697) (- 2,134) 16,993 14,174 14,856 15,000 13,801 14,261 1
Slide 20: Decomposition of Revenue (vs. last year)
Decomposition of Revenue (vs. last year） (in million Yen) (unaudited) Exchange impact 4,327 2026Ｑ1 Europe Japan Americas Net APAC, MEA 63 372 595 sales 1,741 2025Ｑ1 73,856 Net sales 67,501 (Non-GAAP)
Slide 21: Constant currency Revenue growth
Constant currency Revenue growth (YoY) (unaudited) 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2025Q3 2025Q4 2026Q1 (Non-GAAP) •
Slide 22: Net sales by Segment
(in million Yen) Net sales by Segment (unaudited) YoY Growth rate 25,000 Consumer + 5% (+ 4%) * ( ) Constant currency basis Enterprise + 10% (+ 3%) 20,000 1,483 + 47% + 9% (+ 30%) 11,229 + 2% 155 (- 5%) 15,000 (+ 2%) + 5% 1,646 (+ 2%) 10,000 18,747 + 17% 16,835 + 19% (+ 9%) + 2% (+ 4%) - 1% 12,852 5
Slide 23: % share by region
% share by region 1Q2025 1Q2026 67,501 million Yen 73,856 million Yen APAC,MEA Japan 25% Japan APAC,MEA 27% 30% 33% Europe Europe Americas 21% Americas 23% 20% 21%
Slide 24: Deferred Revenue
(in million Yen) Deferred Revenue 250,000 236,085 236,933 230,000 221,386 217,014 218,013 214,473 212,447 211,532 210,643 210,000 200,337 190,000 170,000 150,000 0 130,000 0 Dec-'23 Mar-'24 Jun-'24 Sep-'24 Dec-'24 Mar-'25 Jun-'25 Sep-'25 Dec-'25 Mar-'26
Slide 25: Deferred Revenue by Region
Deferred Revenue by Region (in million Yen) (unaudited) 2025Q4 + 2% 2026Q1 90,000 + 1% 79,334 81,164 80,000 - 0% 70,000 64,902 65,400 60,000 57,319 57,084 - 4% 50,000 40,000 34,527 33,283 30,000 20,000 10,000 0 Japan Americas Europe APAC, MEA (Non-GAAP)
Slide 26: Deferred Revenue by Region (constant currency)
Deferred Revenue by Region (unaudited) If currency exchange rates used as of the end of 4Q2025 were used as of the end of 1Q2026: (in million Yen) 2025Q4 - 0% (- 1,838) 90,000 * ( ) : difference from GAAP base 2026Q1 + 1% 80,000 (0) 79,334 79,326 + 0% (+ 264) 70,000 64,902 65,400 60,000 - 7% 57,319
Slide 27: Non-operating & Extra-ordinary Items
Non-operating & Extra-ordinary Items (in million Yen) (unaudited) Other incomes Gain on reversal Other expenses of stock options Interest income Exchange gain 12 21 93 761 1,340 Income Ordinary before Income income taxes Operating Income 17,651 17,744 15,558
Slide 28: Balance Sheet
Balance Sheet (unaudited) (in million Yen) Dec-2025 change Mar-2026 Assets Cash & cash equivalents 220,092 - 4,751 215,341 Account receivable - 20,192 55,933 (less allowance for doubtful accounts) 76,125 Marketable securities & Securities investments 15,665 + 2,580 18,245 Software 17,380 + 415 17,79
Slide 29: Shrinking "holding Cash"
Shrinking “holding Cash” The holding "Cash," after deducting Deferred revenue (which is the consideration for future service obligations), has currently shrunk to a net-zero level. 313,147 315,935 (Million Yen) 282,888 248,190 235,757 233,586 219,317 222,168 215,415 202,220 183,252 128,790 120,233 1
Slide 30: Thank You
Thank You Copyright © 2026 Trend Micro Incorporated. All rights reserved.
Slide 31: Appendix: Quarterly Chart (1)
Appendix (unaudited) Quarterly Chart (1) (in million Yen) FY2025 FY2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 N e t S ale s 67,501 66,407 68,844 73,230 73,856 CO GS 16,417 15,520 15,447 16,331 16,691 S G& A 36,077 37,420 37,395 43,595 41,606 O pe r at in g I n c o m e 15,006 13,465 16,001 13,303 15,558 O r din ar
Slide 32: Appendix: Quarterly Chart (2)
Appendix (unaudited) Quarterly Chart (2) (in million Yen) FY2025 FY2026 （ N e t Sal e s Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 by R e g i o n & by Se g m e n t ） * Japan (All Enterprise) 11,027 10,735 10,717 10,855 10,906 Japan (Consumer) 11,045 11,086 11,099 11,273 11,229 J apan To t al 22,072 21,822 21,816 22,12