Trend Micro Inc S/Adr (TMICY) Q2 2026 Earnings Call

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WEBVTT 00:00:00.111 -- 00:00:06.012 Thank you, this is Negi speaking, and I would like to start the earnings 00:00:06.012 -- 00:00:08.973 result summary for Q2. 00:00:08.973 -- 00:00:12.473 13% growth in net sales, 00:00:13.194 -- 00:00:18.995 but cost actually grew by 29%, so operating 00:00:18.995 -- 00:00:24.336 income was minus 54%. At the bottom of the slide, we can see the numbers 00:00:24.336 -- 00:00:29.725 at constant currency basis, net sales growing at 3%, and AR growing 00:00:29.725 -- 00:00:31.725 The 00:00:32.527 -- 00:00:36.850 biggest point is decline in income. What has happened? 00:00:36.850 -- 00:00:42.014 Well, Eva Chen will be providing a detailed explanation 00:00:42.014 -- 00:00:47.538 later on, but the biggest focus here is cloud-related expenses. 00:00:47.538 -- 00:00:50.779 Why has it increased so much? 00:00:53.187 -- 00:00:56.770 Rather than paying out a lot of dividends, 00:00:56.770 -- 00:01:01.833 investors have told me in the past many times that we should be investing into the future. 00:01:01.833 -- 00:01:03.435 And 00:01:03.435 -- 00:01:08.098 based on that, we have exactly done that, investing into the future. 00:01:08.098 -- 00:01:12.161 It's not simple capex. 00:01:12.161 -- 00:01:17.185 Our investment directly affects the P&L. This is one big factor 00:01:17.185 -- 00:01:22.948 behind this number. But Eva Chen will give you more explanation later on. 00:01:26.500 -- 00:01:29.863 This is an important point. Rather than mid-sales, 00:01:29.863 -- 00:01:36.427 we are using AI to explain the future of the company. 00:01:37.125 -- 00:01:42.329 Enterprise customers. This is improving from 4% from the previous 00:01:42.329 -- 00:01:47.413 quarter to 6%. In the second half, we expect further improvement in 00:01:47.413 -- 00:01:52.838 t...