Trend Micro (4704): FY2025 Results Summary — Record Full-Year Net Sales and Operating Income

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Trend Micro Incorporated (4704), a global cybersecurity company, announced its FY2025 results (January 1 to December 31, 2025) on February 18, 2026, in a presentation by CFO and Representative Director Mahendra Negi. Full-year net sales rose 1% year on year to 275,984 million yen and operating income jumped 20% to 57,777 million yen, with the company noting these were its highest-ever net revenues and operating income for a full year. The operating margin improved from 18% to 21%, and net income attributable to owners of the parent was 34,523 million yen, up 0% year on year.

Consolidated Results (Full-Year Actual)

For the 12 months ended December 31, 2025, net sales reached 275,984 million yen, achieving 101% of the annual forecast of 274,000 million yen, while operating income of 57,777 million yen came in at 108% of the 53,600 million yen forecast. Total operating expenses declined 3% to 218,207 million yen. Ordinary income rose 2% to 53,980 million yen (120% of forecast) and net income attributable to owners of the parent was 34,523 million yen (114% of forecast). On a non-GAAP reference basis, Pre-GAAP revenue (revenue before adjusting deferred revenue) was 299,007 million yen, down 1%, while Pre-GAAP based operating income rose 4% to 80,799 million yen.

Item (in million yen)	FY2025 (Jan-Dec)	FY2024 (Jan-Dec)	YoY Growth
Net sales	275,984	272,638	+1%
Total operating expenses	218,207	224,532	-3%
Operating income (margin)	57,777 (21%)	48,105 (18%)	+20%
Ordinary income	53,980	52,840	+2%
Net income attributable to owners of the parent	34,523	34,358	+0%
Earnings per share (yen)	262.42	259.05	+1%
Dividend per share (yen)	185.00	184.00	+1%

In the fourth quarter alone (three months ended December 31, 2025), net sales grew 5% year on year to 73,230 million yen — the highest-ever quarterly net revenues — and operating income rose 50% to 13,303 million yen, with the operating margin at 18% versus 13% a year earlier. Q4 net income attributable to owners of the parent was 7,580 million yen, down 5%. The company noted that the sharp decline in its stock price from October to December 2025 (from 8,100 yen at the end of Q3 to 6,502 yen at the end of Q4) significantly reduced stock option related costs in the quarter; excluding this impact, Q4 operating income growth would have been +35% instead of the reported +50%.

Segment Results

By region, full-year net sales grew in Japan (+2% to 87,840 million yen), Europe (+5% to 61,439 million yen) and APAC/MEA (+3% to 71,516 million yen), while the Americas declined 6% to 55,187 million yen. On a constant currency basis (applying FY2024 exchange rates to FY2025), the Americas would have declined 4% and Europe would have grown 2%.

Region (net sales, in million yen)	FY2025 (Q1-Q4)	FY2024 (Q1-Q4)	YoY Growth
Japan	87,840	85,756	+2%
Americas	55,187	58,827	-6%
Europe	61,439	58,546	+5%
APAC, MEA	71,516	69,507	+3%

By business segment, quarterly sales figures in the appendix show fourth-quarter net sales of 60,526 million yen for the All Enterprise segment (versus 56,168 million yen in Q4 FY2024) and 12,704 million yen for the Consumer segment (versus 13,811 million yen in Q4 FY2024). The company notes that sales-by-segment numbers are for internal use and may be subject to changes. Total headcount stood at 6,717 as of December 2025, down 23 from September 2025.

FY2026 Forecast

For FY2026 (January to December 2026), Trend Micro guides for net sales of 301,500 million yen, up 9% year on year (+6% excluding foreign exchange impact, as a rule of thumb), with operating income of 56,400 million yen, down 2%, at a margin of 19%. The company positions FY2026 as a phase of upfront cost investment relative to sales growth: under a rebranding that divides operations into the Enterprise business (TrendAI) and Consumer business (TrendLife), it plans to allocate resources toward acquiring new enterprise customers, mainly increasing personnel costs — including new hires in R&D and Sales & Marketing — and marketing costs. Costs will also be front-loaded due to the business launch of the newly established joint venture, Magna, and the company predicts a temporary slight deterioration in the operating margin. By region, the assumptions are low single-digit growth in Japan, around 10% growth in each of the Americas and Europe, and mid-teens growth in AMEA. The estimated exchange rates are 1 USD = 156 yen (last year: 150 yen) and 1 EUR = 183 yen (last year: 169 yen), and no extraordinary profit/loss items are expected.

Item (in million yen)	FY2026 Forecast (Jan-Dec 2026)	Expected YoY Growth
Net sales	301,500	+9%
Operating income (margin)	56,400 (19%)	-2%
Ordinary income	55,100	+2%
Net income attributable to owners of the parent	36,600	+6%

Shareholder Returns

Trend Micro’s basic policy is, as a rule of thumb, to return all net income generated after making the necessary investments for business growth without retaining any earnings, prioritizing capital efficiency through capital return and/or M&A. The company continues to target maintaining its existing dividend payout ratio of 70% for each fiscal year, while noting it may not reach that level in some years. The annual dividend per share for FY2025 is 185.00 yen, up from 184.00 yen for FY2024. For 2025, planned shareholder compensation consists of dividends of 24,175 million yen and share buybacks of 10,348 million yen, with the ratio of total compensation to net income at 100% (versus 99% in 2024). The ratio of ten years’ cumulative total shareholder compensation to net income from 2016 to 2025 is 144%.

Item	2025 (Plan)	2024
Dividend (million yen)	24,175	24,158
Buyback (million yen)	10,348	9,999
Ratio of total compensation to net income	100%	99%
Dividend per share (yen)	185.00	184.00

Topics

The presentation highlights that ROE reached 28.2% in FY2025, and that ROE has consistently exceeded the company’s capital cost of 7% to 8% (based on a survey of investors and analysts). It also shows that holding cash — defined as cash plus marketable securities and investment securities — after deducting deferred revenue (the consideration for future service obligations) has shrunk to a net-zero level, reflecting the return of retained earnings to shareholders. Deferred revenue stood at 236,085 million yen as of December 2025, up from 221,386 million yen as of December 2024.

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