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

Investor webinar replay

Replay transcript excerpt

Thank you, this is Negi speaking, and I would like to start the earnings result summary for Q2. 13% growth in net sales, but cost actually grew by 29%, so operating income was minus 54%. At the bottom of the slide, we can see the numbers at constant currency basis, net sales growing at 3%, and AR growing The biggest point is decline in income. What has happened? Well, Eva Chen will be providing a detailed explanation later on, but the biggest focus here is cloud-related expenses. Why has it increased so much? Rather than paying out a lot of dividends, investors have told me in the past many times that we should be investing into the future. And based on that, we have exactly done that, investing into the future. It's not simple capex. Our investment directly affects the P&L. This is one big factor behind this number. But Eva Chen will give you more explanation later on. This is an important point. Rather than mid-sales, we are using AI to explain the future of the company. Enterprise customers. This is improving from 4% from the previous quarter to 6%. In the second half, we expect further improvement in this number. ARR by region denominated in US dollars and therefore no currency impact. America's stands out. It is struggling somewhat, but Europe and EMEA are growing quite well. Japan is growing only at 3%, and Kevin Simzer will be providing you more explanation. Considering the geopolitical situation, There are headwinds and tailwinds. And in North America, we have some headwinds. This is the cash flow. There is no comment. This is connected to the operating income. The number of employees headcounts is basically flat. But in the background, we are requiring new types of skills. So there are some turnovers. But in total, the headcount is basically flat. And we bel...