-- Increase of 13% YoY in total company net sales*, driving U.S. $1.7
Billion in ARR, up 5% YoY**
-- Increase of 49% YoY in TrendAI Vision One$(TM)$ ARR, contributing to total
enterprise ARR surpassing U.S. $1.3 Billion, up 6% YoY**
-- Increase of 52% YoY in Digital Life Protection ARR, fueling consumer ARR
of U.S. $374 Million, up 4% YoY**
TOKYO, Aug. 13, 2026 /PRNewswire/ -- Trend Micro Incorporated (TYO: 4704;TSE: 4704), the largest global cybersecurity company headquartered outside the U.S., today announced second-quarter 2026 financial earnings, ending June 30, 2026, with annual recurring revenue $(ARR)$ exceeding U.S. $1.7 Billion, up 5% year-over-year (YoY)**.
"In the agentic AI era, security will be won by those with the decision advantage and the ability to act at machine speed," said Eva Chen, co-founder and CEO of Trend Micro. "That is why 2026 is the inflection point in our transformation into an AI-native operations cybersecurity company. With TrendAI Vision One(TM) ARR up 49% YoY, we're not only investing in transforming ourselves, we're giving every customer the trusted platform they need to leverage agentic AI for better business outcomes."
Trend Micro's enterprise AI cybersecurity business, TrendAI(TM), continued to power company growth as organizations consolidate their security operations onto the platform. TrendAI Vision One(TM) ARR grew 49% YoY** and now represents 45% of total enterprise ARR, with the US market leading, followed by Japan and Germany. Platform momentum is strong with over 2900 customers adopting Vision One in the past 12 months, and existing customers expanding to an average of 4.2 solutions each, driving ARR per enterprise customer up 14% YoY. This momentum is reflected in net revenue retention of 122% and gross retention revenue up 2% from last quarter to 87%.
Services and partners are compounding this platform effect. Customers who attach services adopt 50% more solutions and deliver 2.6x the average ARR, making the 21% rise in services adoption this quarter a leading indicator of future expansion. The same dynamic is playing out across the channel, where more than 325 strategic MSPs now sell TrendAI Vision One, each delivering 8.4x the average ARR of a traditional partner and together growing ARR 92% YoY**.
Trend's consumer business, TrendLife, grew 4% YoY in ARR to U.S. $374 Million**. Fueling growth is Digital Life Protection, up 52% YoY to U.S. $137 Million**, demonstrating the future potential of the growing category.
Trend's incubation businesses, VicOne and Magna, accelerated through Q2, with net sales up 8x YoY* and ARR up 36x YoY**, demonstrating the potential of investing in these new growth markets.
"As committed at the end of 2025, we have made deliberate investments across the business to become AI-native in our operations, and our focus now is on driving those investments through to value," said Rachel Jin, Chief Platform and Business Officer, Head of TrendAI(TM). "The growth signals are there, with leading indicators of monetization now visible in our enterprise ARR pipeline and increased future ARR growth. With disciplined execution, every investment we make this year compounds into the growth and operating leverage of our AI-native model."
For this quarter, Trend Micro posted consolidated net sales of 74,739 million Yen (or US $468 million, 159.47 JPY = 1USD). The company posted operating income of 6,233 million Yen (or US $39 million) and net income attributable to owners of the parent of 3,455 million Yen (or US $21 million) for the quarter, with operating margin of 8%*
Based on recent performance trends and future outlook, we are revising our consolidated results forecast for the full fiscal year ending December 31, 2026 (released on February 18, 2026). Net sales are progressing closely in line with our initial forecast. However, cloud-related expenses, including AI token costs, have risen significantly beyond what we originally projected. This increase reflects the competitive environment and our investments aimed at enhancing the functionality of our products and services. As we reviewed our overall costs, we realized that they are now expected to increase considerably compared to our initial estimates. As a result, we anticipate that the operating income association is projected to see a 23.2% decrease from the same period in the previous year. Additionally, we have newly incorporated actual results of non-operating income and expenses, etc., which occurred during this period (this term of the fiscal year 2026, from January 1 to June 30).
Based on this information, our revised forecast is as follows. Based on information currently available to the company, consolidated net sales for the year ending December 31, 2026 are expected to be 301,500 million Yen (or US $1,932 million, based on an exchange rate of 156 JPY = 1 USD). Operating income and net income attributable to owners of the parent company are expected to be 44,400 million Yen (or US $284 million) and 30,700 million Yen (or US $196 million), respectively.
Key business updates in Q2 2026
Innovative: Trend nurtures a culture of innovation to drive advancements across its cybersecurity platform.
-- Joined Anthropic's Project Glasswing and Adopted Claude Opus 5 to advance
vulnerability prioritization and virtual patching
-- Integrated the Claude Compliance API into TrendAI Vision One(TM) to
strengthen AI governance and compliance for enterprise customers
-- Launched TrendAI(TM) Inception Program to equip more companies to deliver
AI solutions to market faster
-- Advanced three strategic pillars to address enterprise cybersecurity in
the AI era, which includes: organizational evolution, platform strategy
enhancement, and partner ecosystem cultivation.
Trusted: Trend is a trusted partner to the customers and communities that it serves.
-- Awarded over $1,200,000 to ethical hackers for discovering and disclosing
47 unique enterprise zero-day vulnerabilities across AI databases, coding
agents, and more at TrendAI Zero Day Initiative(TM) (ZDI) Pwn2Own event
in Berlin, sponsored by NVIDIA
-- Named among the first cybersecurity vendors selected as trusted partner
in the OpenAI Daybreak Cyber Partner Program
-- Launched Family Circle to extend real-time scam protection across
families
-- Published critical research warning of nation-state activity and modern
bank heists
Global: Trend has the most geographically diverse customers in the industry, with millions of sensors powering the TrendAI Vision One(TM) platform for superior attack surface risk management.
-- Recognized as a Leader in the 2026 Gartner$(R)$ Magic Quadrant(TM) for Endpoint Protection Platforms -- Named a Champion for the fourth consecutive year in Omdia's Global Cybersecurity Platform Ecosystems Leadership Matrix 2026 -- Named winner of the 14th Annual Global InfoSec Awards
Trend Micro was awarded the following patents in Q2 2026:
Patent No. Issue Date Title
---------- ---------- ------------------------------------------------------
12596787 04/07/2026 Prediction of execution behaviors in sandbox
---------- ---------- ------------------------------------------------------
12603901 04/14/2026 Anomaly detection at edge devices
---------- ---------- ------------------------------------------------------
12608466 04/21/2026 Controlling deployment of serverless function codes in
customer accounts on serverless platforms
---------- ---------- ------------------------------------------------------
12609944 04/21/2026 Data lineage-based anomaly detection
---------- ---------- ------------------------------------------------------
12613975 04/28/2026 Discovery of novel vulnerabilities in software
packages on version control platforms
---------- ---------- ------------------------------------------------------
12619723 05/05/2026 Identifying malicious contents that are stored in
distributed hash table networks
---------- ---------- ------------------------------------------------------
12621327 05/05/2026 Detection of anomalous activities in an enterprise
network
---------- ---------- ------------------------------------------------------
12621346 05/05/2026 Honeypots for detecting network intrusions to computer
networks of organizations
---------- ---------- ------------------------------------------------------
12627695 05/12/2026 Malware detection using generative artificial
intelligence and threat knowledge database
---------- ---------- ------------------------------------------------------
* Actual currency in Yen
** ARR at constant currency: 1USD= 155.95 yen
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 between people, governments, and enterprises.
Trend leverages security expertise and AI to protect top global enterprises and millions of individuals across clouds, networks, endpoints, and devices worldwide. At the core is TrendAI Vision One(TM), the only AI-powered enterprise cybersecurity platform that centralizes cyber risk exposure management and security operations, delivering layered protection across on-premises, hybrid, and multi-cloud environments. The unmatched threat intelligence delivered by Trend empowers organizations to proactively defend against hundreds of millions of threats every day. Proactive security starts here. TrendMicro.com
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SOURCE Trend Micro Incorporated
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