Trend Micro Reports Earnings Results for Q1 2025

Rhea-AI Summary

Trend Micro reported strong Q1 2025 results with operating income up 24% and a 22% operating margin. The company achieved 2% global net sales growth and total ARR surpassed $1.7 billion, up 3% YoY. Enterprise business grew 5% YoY in net sales, with large enterprise ARR reaching over $1.3 billion. The company's Trend Vision One platform saw 14% growth in large enterprise ARR.

Q1 consolidated net sales reached 67,501 million Yen ($442 million), with operating income of 15,006 million Yen ($98 million) and net income of 8,858 million Yen ($58 million). For FY2025, Trend Micro maintains its guidance of 288,600 million Yen ($1.87 billion) in net sales and 60,300 million Yen ($391 million) in operating income.

The quarter saw significant achievements including the launch of Trend Cybertron AI, partnerships with Intel and NVIDIA, and strong cloud marketplace growth with AWS showing 25% YoY ARR increase.

Positive

• Operating income increased 24% with 22% operating margin
• Total company ARR exceeded $1.7 billion, up 3% YoY
• Enterprise business grew 5% YoY in net sales
• Trend Vision One platform achieved 14% growth in large enterprise ARR
• Consumer business grew 14% YoY in beyond device protection revenue
• AWS Marketplace ARR increased 25% YoY

Negative

• Softening of pre-GAAP performance due to historical multi-year transactions
• Americas performance impacted by US administration changes
• Backlogged consumer renewals affecting current performance
• Consumer business reducing multi-year deals

• Increase of 24% in operating income* to drive 22% operating margin
• Increase of 2% globally in net sales growth at actual currency
• Increase of 14% in Trend Vision One™ large enterprise annual recurring revenue (ARR), contributing to total company ARR surpassing $1.7 Billion

TOKYO, May 8, 2025 /PRNewswire/ -- Trend Micro Incorporated (TYO: 4704;TSE: 4704), the largest global cybersecurity company headquartered outside the U.S., today announced first-quarter 2025 financial earnings, ending March 31, 2025, with total company ARR exceeding U.S. $1.7 Billion, up 3% year-over-year (YoY).

"Our profitable growth and resilience are attributed to the ongoing execution of our corporate transformation strategy, despite facing the inevitable challenges of uncertain times," said Eva Chen, CEO and co-founder at Trend. "As AI reshapes operations for most organizations and enables scale and sophistication for threat actor attacks, our hybrid enterprise platform and proactive security delivers the best protection for our customers." 

Trend's enterprise business grew 5% YoY in net sales with large enterprise ARR up 5%, exceeding $1.3 Billion. Now representing 73% of total enterprise ARR, Trend's leading cybersecurity platform fueled 14% growth in platform attached large enterprise ARR.

Module adoption accelerated ARR by a 3.7x multiplier with 74% of large enterprise ARR now represented by platform customers with 4 or more modules.

Over 100 new strategic managed service providers joined in delivering proactive security outcomes fueling small enterprises with 77% adopting cyber risk exposure management, resulting in 4x ARR per customer**.

Trend's consumer business grew 14% YoY in beyond device protection revenue representing 33% of total consumer sales. With 16k+ active users in the first year, Trend's Scam Check addresses the escalating prevalence of scams and their impact on vulnerable consumers.

The company completed a significant transformation of its e-commerce platform for consumer purchasing, with backlogged consumer renewals to be fully realized in Q2. The consumer business remains in line with internal plan and with the continued strategy of reducing multi-year deals.

"Our disciplined focus on the bottom line did a really nice job of driving up operating margin to 22%, exceeding internal plan for the first quarter," said Kevin Simzer, COO at Trend. "While softening of pre-GAAP was expected based on historical multi-year transactions and anticipated lower bookings, performance in the Americas was also impacted by the changes undertaken by the US administration. Our position heading into Q2 is well within our 2025 guidance, underscoring confidence in our transformation strategy and north star 'road to 2027' model."

For this quarter, Trend Micro posted consolidated net sales of 67,501 million Yen (or US $442 million, 152.60 JPY = 1USD). The company posted operating income of 15,006 million Yen (or US $98 million) and net income attributable to owners of the parent of 8,858 million Yen (or US $58 million) for the quarter.

The company does not revise expected consolidated results for the full fiscal year ending December 31, 2025 (released on February 18, 2025). Based on information currently available to the company, consolidated net sales for the year ending December 31, 2025 are expected to be 288,600 million Yen (or US $1,874 million, based on an exchange rate of 154 JPY = 1 USD). Operating income and net income attributable to owners of the parent are expected to be 60,300 million Yen (or US $391 million) and 38,900 million Yen (or US $252 million), respectively. 

Key business updates in Q1 2025

Innovative: Trend nurtures a culture of innovation to drive advancements across its cybersecurity platform.

• Launched the first proactive cybersecurity AI — Trend Cybertron — supercharging proactive risk management, threat modeling, attack path prediction, and actionable insights in a single platform.
• Drove the future of agentic cybersecurity with an open-source AI model and agent frameworks, leveraging NVIDIA to accelerate the development of autonomous cybersecurity agents.
• Joined forces with Intel to harness the power of software and hardware security to drive stronger protection of critical systems from covert threats.

Trusted: Trend is a trusted partner to the customers and communities that it serves.

• Recognized as a 2024 Gartner Peer Insights™ Customers' Choice for Cloud-Native Application Protection Platforms.
• Brought visibility the AI application threats landscape during the Paris Peace Forum's AI Action Summit to guide AI governance.
• Issued research that warning that a lack of expertise could be exposing private 5G networks to compromise.

Global: Trend has the most geographically diverse customer bases in the industry, with millions of sensors powering the Trend Vision One™ platform for superior attack surface risk management.

• Ranked #1 as a Channel Champion by Canalys once again, being recognized for Trend's go-to-market innovation, consistent partner engagement and the most global customer base.
• Grew rapidly with critical cloud partners and hyperscalers, including a 25% YoY increase in ARR with AWS Marketplace worldwide.
• Revealed a continued annual decline in its Cyber Risk Index score as organizations see measurable risk reduction through proactive security approaches.

Trend was awarded the following patents in Q1 2025:

Patent No.	Issue Date	Title
12206701	01/21/2025	System and method for evaluating performance of a patching process of an enterprise network
12223045	02/11/2025	Protecting customers against supply chain attacks by detecting a behavior change between versions of an application program
12254089	03/18/2025	Malware families identification based upon hierarchical clustering

*Actual currency in Yen
**Compared to non-Vision One MSP ARR.

Notice Regarding Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements. Forward-looking statements are sometimes accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on our current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

About Trend Micro

Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's AI-powered cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, Trend's platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 70 countries, Trend Micro enables organizations to simplify and secure their connected world. www.TrendMicro.com.

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SOURCE Trend Micro Incorporated

FAQ

What were Trend Micro's (TMICY) key financial results for Q1 2025?

In Q1 2025, Trend Micro reported net sales of 67,501 million Yen ($442M), operating income of 15,006 million Yen ($98M), and net income of 8,858 million Yen ($58M). Operating income increased 24% with a 22% operating margin.

What is Trend Micro's revenue guidance for full-year 2025?

Trend Micro maintains its FY2025 guidance with expected consolidated net sales of 288,600 million Yen ($1.87B) and operating income of 60,300 million Yen ($391M).

How much did Trend Micro's enterprise ARR grow in Q1 2025?

Trend Micro's large enterprise ARR grew 5% YoY, exceeding $1.3 billion, with platform attached large enterprise ARR growing 14%.

What new products or innovations did Trend Micro launch in Q1 2025?

Trend Micro launched Trend Cybertron, a proactive cybersecurity AI platform, and partnered with NVIDIA for autonomous cybersecurity agents and with Intel for hardware security protection.

How is Trend Micro's consumer business performing in 2025?

The consumer business grew 14% YoY in beyond device protection revenue, representing 33% of total consumer sales. However, there are backlogged consumer renewals expected to be realized in Q2.