Trend Micro Incorporated: 2026 Q1 Financial Report Data

May 14, 2026

Report of Earning Results (Consolidated) for the First Quarter of the Fiscal Year Ending December 31, 2026

Company : Trend Micro Incorporated Tokyo Stock Exchange, Prime Market Code : 4704 Location : Tokyo

URL : http://www.trendmicro.com

Representative: Title Representative Director

Name Eva Chen

Contact: Title Representative Director Name Mahendra Negi

TEL +81-3-4330-7600

1. Financial Highlights for the Three Months Ended March 31, 2026

   1. Consolidated Results of Operations

      	Net Sales		Operating Income		Ordinary Income		Net Income Attributable to Owners of the Parent
      	Million yen	%	Million yen	%	Million yen	%	Million yen	%
      Three Months Ended March 31, 2026	73,856	9.4	15,558	3.7	17,651	42.2	11,775	32.9
      Three Months Ended March 31, 2025	67,501	2.4	15,006	23.7	12,408	(9.2)	8,858	(17.6)

      (Note) Comprehensive Income: 12,303million yen 112.6 % as of March 31, 2026 (5,787million yen (58.8)% as of March 31, 2025)

      	Net Income per share (basic)	Net Income per share (diluted)
      	Yen	Yen
      Three Months Ended March 31, 2026	90.14	-
      Three Months Ended March 31, 2025	67.46	66.94

   2. Consolidated Financial Position

      	Total Assets	Net Assets	Equity Ratio
      As of	Million yen	Million yen	%
      March 31, 2026	399,240	114,532	27.8
      December 31, 2025	422,238	131,126	30.2

      (Note) Net Assets after deduction of Share acquisition rights and Non-controlling interest

      : 111,009million yen as of March 31, 2026 (127,519million yen as of December 31, 2025)

2. Dividend of Surplus

   	Cash dividends per share
   As of	The first quarter end	The second quarter end	The third quarter end	Annual end	Total
   December 31, 2025	Yen	Yen	Yen	Yen	Yen
   	-	0.0	-	185.0	185.0
   December 31, 2026	-
   Projection for FY 2026		0.0	-	-	-

   (Note) Revision of the projection of dividend for the first quarter of FY 2026 : No (Note) The dividend projection for FY2026 annual end has not been determined yet.

3. Forecasts of consolidated financial results for FY 2026

   (January 1, 2026 through December 31, 2026)

   (Note) For the forecast of FY 2026, please refer to next page.

4. Others

   1. Significant changes in the scope of consolidation during the period : No

   2. Application of simplified or specified accounting procedures : Yes

   3. Changes in accounting principles, accounting estimates and restatement

      ① Changes under the revision of Accounting Standards : No

      ② Changes in Accounting Principles other than ① : No

      ③ Changes in Accounting Estimates : No

      ④ Restatements : No

   4. Number of shares issued (common shares)

① Number of shares issued (including treasury stocks): 140,901,604 shares as of March 31, 2026

140,901,604 shares as of December 31, 2025

② Number of treasury stocks :

11,134,268 shares as of March 31, 2026

10,221,368 shares as of December 31, 2025

③ Average number of shares outstanding :

130,624,303 shares three months ended March,2026 131,313,544 shares three months ended March,2025

• Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None

• Statement relating to the status of the quarterly review procedures

  This quarterly report is not subject to the quarterly review procedures, which are based on the Financial Instruments and Exchange Law. The review procedures for quarterly consolidated accounts have not finished at the point of the announcement of the quarterly financial results.

• Explanation for the proper use of projection and other notes

Any forward-looking statement in this report including forecast results, are based on certain assumptions that were deemed rational as well as information currently available to the Company. However, various factors could cause actual results to differ materially. Please refer to (3) Qualitative Information on the Consolidated Earnings Forecast on page 3 of the attachment for conditions serving as assumptions for forecast results.

Forecasts of consolidated financial results for FY 2026

Appendix contents:

1. Qualitative Information and Financial Statements 2

   1. Qualitative Information on the Consolidated Business Results 2

   2. Consolidated Financial Positions 3

   3. Consolidated Earnings Forecast 3

2. Others 4

   1. Movement of Significant Subsidiaries 4

   2. Application of Simplified or Special Accounting Procedures 4

3. Consolidated Financial Statements 5

   1. Consolidated Balance Sheets 5

   2. Consolidated Statements of Income 7

      Consolidated Statements of Comprehensive Income 8

   3. Consolidated Statements of Cash Flows 9

   4. Footnotes on Consolidated Financial Statements 10

(Footnote on Going Concern) 10

(Notes on Significant Changes in Shareholders' Equity) 10

(Additional information) 10

(Segment Information) 11

1 Qualitative Information and Financial Statements

1. Qualitative Information on the Consolidated Business Results

   (Unit: million yen)

   	Net Sales
   	The First Quarter of FY2026	The First Quarter of FY2025	Rate of Change
   Japan Reg.	22,136	22,072	0.3%
   Americas Reg.	14,498	14,174	2.3%
   Europe Reg.	16,990	14,261	19.1%
   Asia and Pacific Reg.	20,231	16,993	19.1%
   Total	73,856	67,501	9.4%

   During this term of fiscal year 2026, from January 1 to March 31, the global economy continued to navigate an increasingly uncertain environment, marked by the emergence of new geopolitical risks as the tensions in the Middle East, and additionally growing opacity surrounding U.S. trade policies and volatility in financial and capital markets. The outlook for the global economy going forward warrants close attention.

   In the worldwide Information Technology industry, AI continue to be permeating every aspect of our lives. According to a third-party report, worldwide spending on AI is forecast to total $2.5 trillion in 2026, representing a 44% year-over-year increase. In addition, AI infrastructures and software drive IT spending. As the result, worldwide IT spending in 2026 is forecast to reach 6.5 trillion dollars, up

   13.5 percent year on year.

   In the cybersecurity industry, the speed and scale of attacks have continued to escalate, driven by advances in AI, rising geopolitical risks, fragmentation of globalism, and increasing supply chain complexity. Against this backdrop, prominent threats have included cyberattacks targeting government agencies and other public institutions, incidents involving the theft of corporate confidential information and cryptocurrency, targeted attacks aimed at specific companies and organizations, and ransomware and other cyberattacks. Furthermore, security risks associated with the widespread adoption of AI have become increasingly tangible, placing even greater demands on both companies and individuals to maintain a high level of security awareness.

   Under such an environment, our group business conditions are as follows:

   Starting in 2026, the company has redesigned its traditional enterprise business under the business brand "TrendAI" and its traditional consumer business under the business brand "TrendLife," and start to roll out both operating each as an independent business brand.

   With regards to the enterprise business, AI-Powered Next-Gen SOC security grew significantly across all regions supported by the security platform TrendAI Vision One™ (hereinafter "Vision One"). While the migration from standalone SaaS products discontinued from the current fiscal year to Vision One continues, the ARR (Annual Recurring Revenue) of Vision One comes over entire TrendAI has grown substantially. Although overall ARR growth still remains lower than Vision One's ARR growth due to the coexistence of increasing Vision One ARR and declining non-Vision One ARR, the share of total Vision One ARR has been rising. In addition, the company anticipates further acceleration of Vision One ARR growth through the complete transition of its sales model from individual product-by-product sales to a credit-based model that allows flexible use of the various platform features of Vision One. Against this backdrop, the sales from the enterprise business increased to 59,341 million yen (10.4% increase from the same period in the previous year.)

   By region, the Japan region amounted a decrease in its sales to 10,906 million yen (1.1% decrease from the same period in the previous year), the Americas region recorded an increase to 12,852 million yen (2.0% increase from the same period in the previous year) , the Europe region recorded an increase to 16,835 million yen (19.2% increase from the same period in the previous year) ,and the Asia-Pacific region recorded an increase to 18,747 million yen (17.3% increase from the same period in the previous year).

   With regards to the consumer business, the impact of the transition to a new e-commerce payment company, which had occurred in regions outside Japan, largely dissipated. In affition, as a result of unit price improvement measures to reduce discount amounts and steer customers toward higher-priced products, total consumer business sales increased to 14,515 million yen (5.4% increase from the

   same period in the previous year).

   By region, the Japan region which represents over half of this business recorded an increase in its sales to 11,229 million yen (1.7% increase from the same period in the previous year), the Americas region recorded an increase to 1,646 million yen (4.6% increase from the same period in the previous year) , the Europe region recorded an increase to 155 million yen (8.8% increase from the same period in the previous year) ,and the Asia-Pacific region recorded an increase to 1,483 million yen (47.0% increase from the same period in the previous year).

   As the result, the consolidated net sales for this period (this term of fiscal year 2026, from January 1 to March 31,) marked 73,856 million yen 9.4% increase from the same period in previous year).

   For the costs, in spite of a significant decrease in related to the virtual share bonus plan due to fluctuations in share price, mainly people costs increase significantly due to the impact of yen depreciation, as well as cloud costs and general and administrative expenses including internal meeting expenses related to the business brand promotion initiative rolling out from the current fiscal year. As a result, although the total of cost of sales and selling, general and administrative expenses increased to 58,297 million yen (11.1% increase from the same period in the previous year), operating income for the first quarter cumulative period increased to 15,558 million yen (3.7% increase from the same period in the previous year).

   The consolidated ordinary income for this period increased substantially to 17,651 million yen (42.2% increase from the same period in the previous year), primarily due to the absence of significant foreign exchange losses, etc. Also, the net income attributable to owners of the parent for this period was 11,775 million yen (32.9% increase from the same period in previous year) significant increase to.

   For this period, ARR (Annual Recurring Revenue), which currently serves as an important management indicator for our company, was an increase of 3% increase in constant currency from the same period in the previous year. While Non-Vision One related ARR has been declining, Vision One-related ARR has been growing steadily, driving overall ARR growth.

2. Consolidated Financial Positions

   At the end of this period, cash and bank deposits at the end of this period amounted to 215,341 million yen and significantly decreased to 4,750 million yen from FY2025 annual closing.

   Mainly due to a substantial decrease in Notes and Accounts receivable, additionally cash and bank deposits decreased significantly, etc., total assets at the end of this period were 399,240 million yen, 22,998 million yen decrease from FY2025 annual closing.

   Total liabilities at the end of this period were 284,707 million yen, 6,404 million yen decrease from FY2025 annual closing mainly due to a decrease in provisions for the virtual share bonus plan, etc.

   Total net assets at the end of this period were 114,532 million yen, 16,593 million yen decrease from FY2025 annual closing. This decrease is primarily caused by a significant decrease in retained earnings due to the payment of dividends and an increase in treasury stock resulting from the acquisition of treasury stock, etc.

3. Consolidated Earnings Forecast

As of now, we do not revise our consolidated results forecast for the full fiscal year ending December 31, 2026 (released on February 18, 2026).

Business forecast for the Annual of FY2026 (January 1, 2026 - December 31, 2026) Consolidated net sales 301,500 million yen

Consolidated operating income 56,400 million yen

Consolidated ordinary income 55,100 million yen Net income attributable to owners of the parent 36,600 million yen

In development of the business forecasts the main assumed exchange rates for the Annual of FY2026 (January 1, 2026 - December 31, 2026) as follows.

1 US $ 156 yen

1 Euro 183 yen

1. Others

   1. Movement of Significant Subsidiaries N/A

   2. Application of Simplified or Special Accounting Procedures (Calculation of income tax expenses)

      Multiply net income before tax for this period (3 months) by effective tax rate, which is rationally calculated based on projected annual profit and its taxes taking into consideration of deferred tax accounting. In addition, deferred tax expense is included in income taxes.

      However, if the calculation of tax expenses using the effective tax rate results in a markedly unreasonable outcome, tax expenses are calculated by using the statutory effective tax rate after adding and subtracting important differences that do not fall under temporary differences to and from profit before income taxes.

2. 【CONSOLIDATED FINANCIAL STATEMENTS】

(Million yen)

1. 【Consolidated Statements of Income and Consolidated Statements of Comprehensive Income】 Consolidated Statements of Income

   Three months ended March 31, 2025

   (Million yen) Three months ended

   March 31, 2026

   Net sales		67,501	73,856
   Cost of sales		16,417	16,691
   	Gross profit	51,084	57,165
   Operating expenses		36,077	41,606
   Operating income		15,006	15,558
   Non-operating income
   Outsourcing service income		2	-
   Interest income		831	761
   Foreign exchange gain		-	1,340
   Other income		10	12
   Total non-operating income		844	2,114
   Non-operating expenses
   Foreign exchange loss		2,892	-
   Equity in losses of affiliated companies		512	3
   Loss on disposal of fixed assets		1	13
   Other expenses		36	4
   Total non-operating expenses		3,443	21
   Ordinary income		12,408	17,651
   Extraordinary gain
   Gain on reversal of stock options		-	93
   Total extraordinary gain		-	93
   Extraordinary loss
   Loss on valuation of investment securities		160	-
   Total extraordinary loss		160	-
   Net income before taxes		12,248	17,744
   Income taxes		3,502	6,134
   Net income		8,745	11,610
   Net income(loss) attributable to non-controlling interests		(112)	(164)
   Net income attributable to owners of the parent		8,858	11,775

   Consolidated Statements of Comprehensive Income		(Million yen)
   	Three months ended	Three months ended
   	March 31, 2025	March 31, 2026
   Net income	8,745	11,610
   Other comprehensive income
   Valuation difference on available-for-sale securities	62	(130)
   Foreign currency translation adjustment	(2,964)	904
   Remeasurement of defined benefit plans	(50)	(81)
   Share of other comprehensive income of associates accounted for using equity method	(5)	0
   Total other comprehensive income	(2,958)	693
   Comprehensive income	5,787	12,303
   Comprehensive income attributable to	5,901	12,469

   owners of the parent Comprehensive income attributable to

   non-controlling interests

   (113) (165)

2. 【Consolidated Statements of Cash Flows】

   Account Three months ended

   March 31, 2025

   (Million yen) Three months ended

   March 31, 2026

   Cash flows from operating activities:

   Net income before taxes	12,248	17,744
   Depreciation and amortization	6,581	6,565
   Stock compensations	288	209
   Gain on reversal of stock options	-	(93)
   Amortization of goodwill	169	174
   Increase (decrease) in allowance for bad debts	(56)	(0)
   Increase (decrease) in net defined benefit liability	29	(207)
   Interest income	(831)	(761)
   Equity in (earnings)/loss of affiliated companies	512	3
   (Gain) loss on disposal of Fixed assets	1	13
   (Gain) loss on valuation of investment securities	160	-
   (Increase) decrease in notes and accounts receivable and contract assets	17,042	22,358
   (Increase) decrease in inventories	(1,146)	(21)
   Increase (decrease) in notes and accounts payable	(552)	(129)
   Increase (decrease) in accounts payable, other & accrued expenses	(1,627)	(1,061)
   Increase (decrease) in deferred revenue	(3,731)	(2,337)
   Increase (decrease) in virtual share bonus plan	(195)	(2,549)
   Others	(5,544)	(5,192)
   Subtotal	23,347	34,714
   Proceeds from interest and dividend received	896	740
   Payment for income tax	(5,451)	(5,871)
   Net cash provided by operating activities	18,793	29,583
   Cash flows from investing activities:
   (Payments for)/Proceeds from time deposits	(12,193)	(13,060)
   Payments for purchases of property and equipment	(301)	(316)
   Payments for purchases of other intangibles	(6,748)	(5,866)
   Net cash provided by investing activities	(19,243)	(19,243)
   Cash flows from financing activities:
   Payment for purchase of treasury stock	(0)	(4,999)
   Receipt from disposal of treasury stock	426	163
   Dividends paid	(23,371)	(23,439)
   Repayments to non-controlling shareholders	-	(1)
   Proceeds from paid-up by non-controlling shareholders	2,275	-
   Net cash used in financing activities	(20,669)	(28,277)
   Effect of exchange rate changes on cash and cash equivalents	(4,718)	2,612
   Net increase (decrease) in cash and cash equivalents	(25,838)	(15,325)
   Cash and cash equivalents at beginning of period	187,392	230,458
   Cash and cash equivalents at end of period	161,554	215,133

3. Footnotes on Consolidated Financial Statements (Footnote on Going Concern)

N/A

(Notes on Significant Changes in Stockholders' Equity) (Dividends from Surplus)

We resolved to pay a dividend of 24,175 million yen based on the resolution of the Ordinary General Meeting of Shareholders on March 26, 2026. As a result, retained earnings decreased by 12,400 million yen for the current fiscal year consolidated cumulative period.

(Additional information)

(Matters concerning consolidated subsidiaries)

We invest in Trend Forward Capital I, L.P. (hereinafter TFI), which operates a venture capital business in the United States as a limited partnership. Business execution powers of TFI were held by Wael Mohamed who was our board until March 2020, while we are only limited partners and have no authority or intention to participate in the management of TFI.

However, we have contributed more than half of the total amount invested in TFI and have not been able to prove that Wael is not a close member in accordance with "the Practical Handling of the Application of Control and Influence Standards to Investment Partnerships" (Practical Handling Report No. 20). Therefore, we have included TFI in our consolidation scope in accordance with "the Practical Handling Report No.20" and" the Accounting Standards for Consolidated Financial Statements "(ASBJ Statement No. 22).

(Segment Information)

Information on sales, profit/loss by reporting segments

For the previous fiscal year (from January 1, 2025 to March 31, 2025)

1. Information on net sales and profits by reporting segment

(Million Yen)

(Note)

1. The classification of the geographical segment is based on geographic proximity.

2. Major countries other than Japan:

   Americas U.S.A., Brazil

   Europe Ireland, Germany, Italy, France, UK Asia Pacific Taiwan, Australia, Singapore, UAE

3. Consolidation Adjustment in segment income 77million yen comes from the elimination between segments transaction.

4. Total amount of segment income is adjusted to operating income in consolidated statement of income.

   For the current fiscal year (from January 1, 2026 to March 31, 2026)

   1. Information on net sales and profits by reporting segment

(Million Yen)

(Note)

1. The classification of the geographical segment is based on geographic proximity.

2. Major countries other than Japan:

   Americas U.S.A., Brazil

   Europe Ireland, Germany, Italy, France, UK Asia Pacific Taiwan, Australia, Singapore, UAE

3. Consolidation Adjustment in segment income (513) million yen comes from the elimination between segments transaction.

4. Total amount of segment income is adjusted to operating income in consolidated statement of income.