Trend Micro Reports Earnings Results for Q2 2025

Rhea-AI Summary

Trend Micro (TYO: 4704) announced its Q2 2025 financial results, with annual recurring revenue (ARR) surpassing $1.6 billion, up 1% year-over-year. The company reported consolidated net sales of 66,407 million Yen ($459 million), operating income of 13,465 million Yen ($93 million), and net income of 5,478 million Yen ($37 million).

Key highlights include a 94% growth in Trend Vision One™ platform ARR, 43% increase in operational cash flow, and 55% growth in consumer business beyond device gross sales. The company revised its FY2025 forecast, expecting net sales of 274,000 million Yen ($1.86 billion) and operating income of 53,600 million Yen ($364 million).

Notable achievements include new AI-powered threat detection capabilities with AWS and NVIDIA integration, and maintaining leadership position in Gartner's Magic Quadrant for Endpoint Protection Platforms for the 20th consecutive time.

Positive

• 94% YoY growth in platform ARR for large enterprises
• 43% increase in cash flow from operations
• 55% YoY growth in consumer business beyond device gross sales
• 5x acceleration in ARR from managed service providers
• Operating income increased 9% driving 20% operating margin
• Enterprise business showed 4% YoY net sales growth in constant currency
• 62% increase in cyber risk exposure management module adoption

Negative

• Overall ARR growth limited to 1% YoY
• Sales performance softer than anticipated due to economic uncertainty
• Downward revision of full-year forecast due to market competition and currency headwinds
• Experiencing unprecedented level of delayed deals

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• Increase of 9% in operating income to drive 20% operating margin*
• Increase of 43% in cash flow from operations
• Increase of 94% in Trend Vision One™ large enterprise annual recurring revenue (ARR)**, contributing to total company ARR surpassing U.S. $1.6 Billion

TOKYO, Aug. 7, 2025 /PRNewswire/ -- Trend Micro Incorporated (TYO: 4704;TSE: 4704), the largest global cybersecurity company headquartered outside the U.S., today announced second-quarter 2025 financial earnings, ending, June 30, 2025, with annual reoccurring revenue exceeding U.S. $1.6 Billion, up 1% year-over-year (YoY).

Trend's enterprise business was fueled by ongoing platform adoption and expansion contributing to 4% YoY net sales growth in constant currency.  A key accelerator of expansion is the proactive capabilities of Trend's cyber risk exposure management, increasing module adoption 62%, driving the positive momentum in large enterprise ARR of 3% YoY.  

"Our proactive security strategy has proven its strength, with a remarkable 94% YoY growth in platform ARR this quarter," said Eva Chen, co-founder and CEO at Trend. "Despite some uncertainties driven by global economic turmoil as well as currency headwinds, we are strategically positioned for growth and resilience. As businesses increasingly seek security solutions for their AI-driven transformations, we are the only trusted party to deliver a hybrid enterprise platform."

In Q2, Trend's ARR from managed service providers accelerated to 5x per customer as more MSPs realize the power of delivering a leading proactive security solution. 

During the same period, Trend's consumer business grew 55% YoY in beyond device gross sales, now exceeding $89M and representing 35% of total consumer sales. With the successful migration completed to a new merchant of record for processing credit card transactions, the business unit grew over 132k downloads of Trend Micro ScamCheck in the second quarter.

"Sales this quarter were softer than anticipated, largely due to ongoing economic uncertainty, which delayed more deals than we have ever experienced. Despite this, we remain confident in our teams' ability to close these deals in the second half and adapt through these unprecedented challenging market conditions," said Kevin Simzer, COO at Trend. "We are committed to refining investments into key growth areas to fuel our top-line growth while maintaining strong operational expense management." 

For this quarter, Trend Micro posted consolidated net sales of 66,407 million Yen (or US $459 million, 144.61 JPY = 1USD). The company posted operating income of 13,465 million Yen (or US $93 million) and net income attributable to owners of the parent of 5,478 million Yen (or US $37 million) for the quarter. 

As of now, the company will revise its consolidated results forecast for the full fiscal year ending December 31, 2025 (released on February 18, 2025) taking into consideration the impact of uncertainty mainly due to the market competition and the U.S. tariff policy.  In addition, we have revised our exchange rate assumption that reflects an appreciation of the Japanese Yen against the U.S. dollar. 

As the result, forecasts of new net sales for FY 2025 is assumed consolidated net sales for the year ending December 31, 2025, is expected to be 274,000 million Yen (or US $1,863 million, based on an exchange rate of 147 JPY = 1 USD).  Operating income and net income attributable to owners of the parent are expected to be 53,600 million Yen (or US $364 million) and 30,200 million Yen (or US $205 million), respectively.

Key business updates in Q2 2025 

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

• Debuted AI-powered threat detection with AWS infrastructure support and NVIDIA integration to deliver proactive security for modern enterprise workloads.
• Delivered powerful and simplified security capabilities to the NVIDIA Enterprise AI Factory validated design, enabling organizations to safely adopt next-gen AI infrastructure.
• Adopted the NVIDIA Agentic AI safety blueprint, enhancing AI safety and security in NVIDIA enterprise AI factory to reinforce full lifecycle protection of AI systems.
• Collaborated with NIVIDA and Dell Technologies to deliver co-developed, AI-powered infrastructure solutions that scale with the needs of global enterprises.
• Launched industry first personalized early scam warning feature to protect and empower consumers against evolving scam tactics from cybercriminals. 

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

• Issued new research that revealed the expanding reach of the Russian-speaking cybercriminal underground, an ecosystem that has shaped global cybercrime.
• Highlighted alarmingly low use of attack surface management tools, which contribute to three quarters of cybersecurity incidents which occur from unmanaged assets.
• Uncovered a new soY0cial engineering campaign using TikTok, highlighting the importance of maintaining security awareness, especially against AI-generated content.
• Celebrated the 20th consecutive recognition as a Leader in the Gartner® Magic Quadrant™ for Endpoint Protection Platforms.

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

• Named a leader in the IDC MarketScape for Worldwide Cloud-Native Application Protection Platforms (CNAPP) 2025 Vendor Assessment.
• Hosted the first-ever security researcher hacker competition focused on AI infrastructure and finding the bugs to proactively safeguard the future of computing through Trend ZDI's Pwn2Own Berlin competition
• Brought together C-suite leaders, top industry analysts and security pioneers from across to globe, delivering bold insights on the shift from reactive security to a proactive, risk-based approach.
• Deepened collaboration with Google to secure the connected world through a multi-cloud, AI-first environment—supporting sovereignty requirements, enhancing consumer and enterprise protection, and building digital trust at scale.

Trend Micro was awarded the following patents in Q2 2025: 

Patent No.	Issue Date	Title
12267344	04/01/2025	Identifying Similar Geographically Proximate Infrastructures from a Known Network Address
12316674	05/27/2025	Securing Network Traffic Between a Web Client and a Secure Web Gateway
12316622	05/27/2025	Protection Of Public-facing Computing Assets of an Organization

*Actual currency in Yen
** Vision One Platform + Platform Cyber Services

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.  

FAQ

What were Trend Micro's key financial results for Q2 2025?

Trend Micro reported net sales of 66,407 million Yen ($459 million), operating income of 13,465 million Yen ($93 million), and net income of 5,478 million Yen ($37 million). The company's ARR exceeded $1.6 billion, growing 1% YoY.

How much did Trend Micro's (TYO: 4704) Vision One platform ARR grow in Q2 2025?

Trend Micro's Vision One platform ARR grew by 94% year-over-year in Q2 2025, showing strong adoption of their enterprise platform.

What is Trend Micro's revised revenue forecast for FY 2025?

Trend Micro revised its FY2025 forecast to 274,000 million Yen ($1.863 billion) in net sales and 53,600 million Yen ($364 million) in operating income, adjusting for market competition and currency impacts.

What were the main challenges Trend Micro faced in Q2 2025?

Trend Micro faced softer than anticipated sales due to economic uncertainty, experiencing unprecedented levels of delayed deals, while also dealing with market competition and currency headwinds.

What new innovations did Trend Micro announce in Q2 2025?

Trend Micro launched AI-powered threat detection with AWS and NVIDIA integration, delivered security capabilities for NVIDIA Enterprise AI Factory, and introduced the industry's first personalized early scam warning feature.