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Trend Micro
(4704)
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Rating:72Outperform
Price Target:
¥7,473.00
▲(15.15% Upside)
Action:Reiterated
Date:06/14/26
The score is primarily supported by strong financial quality (debt-free balance sheet, solid margins, and strong free-cash-flow conversion), partially offset by a mixed technical picture (below the 20-day and 200-day averages with neutral momentum). Valuation is reasonable with a supportive ~3.1% dividend yield.
Positive Factors
Debt-free balance sheet
Zero total debt materially reduces financial risk and preserves strategic flexibility. Over a multi-month horizon this enables consistent investment in R&D, product development, M&A or shareholder returns without refinancing pressure, and improves resilience through industry cycles.
Negative Factors
Modest revenue growth
Low single-digit top-line growth constrains the company's ability to scale fixed-cost investments and offset rising operating costs. Over a 2–6 month horizon this suggests limited momentum in new subscription bookings or market penetration, pressuring long-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero total debt materially reduces financial risk and preserves strategic flexibility. Over a multi-month horizon this enables consistent investment in R&D, product development, M&A or shareholder returns without refinancing pressure, and improves resilience through industry cycles.
Read all positive factors
Trend Micro (4704) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥832.55B
Dividend Yield2.92%
Average Volume (3M)775.08K
Price to Earnings (P/E)22.2
Beta (1Y)0.30
Revenue Growth2.97%
EPS Growth15.33%
CountryJP
Employees6,717
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)285.01
Shares Outstanding140,901,610
10 Day Avg. Volume999,720
30 Day Avg. Volume775,083
Financial Highlights & Ratios
PEG Ratio18.99
Price to Book (P/B)6.55
Price to Sales (P/S)3.10
P/FCF Ratio13.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,450.00Price Target Upside-0.62% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)291.06
Revenue Forecast (FY)¥299.90B
Trend Micro Business Overview & Revenue Model
Company Description
Trend Micro Incorporated, established in 1965 and headquartered in Tokyo, Japan, is a leading provider of computer and internet security software, primarily serving the Japanese market. The company offers a comprehensive suite of hybrid cloud secu...
How the Company Makes Money
Trend Micro makes money primarily by selling cybersecurity software and services, largely on a recurring basis. Its core revenue model is subscription licensing (and renewals) for security products delivered as on-premises software, cloud/SaaS off...
Trend Micro Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call conveyed constructive progress: record revenues and operating profit, clear momentum for the Vision One platform (strong attachment, high NRR, expanding ARR per customer), and a strategic shift toward ARR-centric measurement and platform-based GTM. At the same time, management flagged real near-term challenges — ARR growth deceleration, pre-GAAP softness, consumer legacy disruption, increased cloud and start-up costs, and planned investments that pressure operating income. Management presented a coherent transformation plan (GTM, pricing, Flex model) and explicit growth/investment trade-offs for 2026.Positive Updates
Record Q4 and Full-Year Results
Q4 net sales rose 5% and management reported record-high net sales and operating profit for the full year 2025; operating profit in the quarter was reported up ~50% with an OP margin of 18% (management also reported a full-year operating margin of ~21%).
Negative Updates
ARR Growth Slowdown in Q4
ARR growth decelerated to ~2% in Q4 (down from ~7% a year earlier), and management acknowledged ARR momentum was slower than prior-year levels and will require execution to recover.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 and Full-Year Results
Q4 net sales rose 5% and management reported record-high net sales and operating profit for the full year 2025; operating profit in the quarter was reported up ~50% with an OP margin of 18% (management also reported a full-year operating margin of ~21%).
Read all positive updates
Company Guidance
Trend Micro’s 2026 guidance calls for net sales to rise ~9% (≈6% ex‑currency) while operating profit is expected to decline ~2%; management is targeting company‑level ARR growth of ~13% (with segment targets of TrendAI ARR +15% and TrendLife ARR +6%), and plans to invest in TrendAI, VicOne and Magna AI (which pressures near‑term OI). Key underlying metrics cited on the call include Vision One penetration (≈38–41% of TrendAI ARR), Vision One average ARR per customer ~$35.5k vs non‑Vision One ~$5.4k, a Vision One attachment base of 11,500 customers (48% attachment), Vision One NRR ~130%, 4.9 solutions average deployed, a $7.3bn incremental ARR opportunity in the installed base, total company recurring revenue $1.7bn (up 1% YoY) and enterprise recurring revenue $1.3bn (up 2%); shareholder return guidance includes an expected dividend of JPY185/sh (vs JPY184 prior) and a JPY5bn buyback as part of a 100% return framework (70% dividend + buyback).Trend Micro Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 282.34B | 275.98B | 272.64B | 248.69B | 223.79B | 190.36B |
| Gross Profit | 218.35B | 212.27B | 207.66B | 185.03B | 169.50B | 148.34B |
| EBITDA | 84.87B | 79.39B | 84.51B | 60.29B | 67.13B | 73.28B |
| Net Income | 37.44B | 34.52B | 34.36B | 10.73B | 29.84B | 38.37B |
Balance Sheet | ||||||
| Total Assets | 399.24B | 422.24B | 400.32B | 492.63B | 470.80B | 420.46B |
| Cash, Cash Equivalents and Short-Term Investments | 228.99B | 231.03B | 210.90B | 299.03B | 242.85B | 256.80B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 284.71B | 291.11B | 280.87B | 278.21B | 242.12B | 199.03B |
| Stockholders Equity | 114.20B | 130.63B | 119.44B | 214.39B | 228.66B | 220.64B |
Cash Flow | ||||||
| Free Cash Flow | 74.25B | 63.48B | 45.56B | 55.05B | 55.50B | 53.11B |
| Operating Cash Flow | 75.43B | 64.64B | 46.78B | 57.23B | 56.90B | 55.27B |
| Investing Cash Flow | 586.00M | 2.86B | 4.83B | 30.99B | -67.71B | 3.95B |
| Financing Cash Flow | -34.90B | -29.57B | -130.69B | -43.42B | -30.44B | -17.82B |
Trend Micro Technical Analysis
Positive
6490.00
Price Trends
6208.46
Positive
5891.87
Positive
6264.23
Positive
Market Momentum
128.20
Negative
61.30
Neutral
63.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4704, the sentiment is Positive. The current price of 6490 is above the 20-day moving average (MA) of 6447.40, above the 50-day MA of 6208.46, and above the 200-day MA of 6264.23, indicating a bullish trend. The MACD of 128.20 indicates Negative momentum. The RSI at 61.30 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4704.
Trend Micro Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥36.09B | 14.00 | 20.19% | 3.09% | 9.27% | 48.93% | |
77 Outperform | ¥42.32B | 28.37 | ― | 0.64% | 22.45% | 23.34% | |
77 Outperform | ¥18.46B | 20.22 | ― | 0.28% | 29.37% | 66.06% | |
72 Outperform | ¥832.55B | 22.25 | 30.96% | 2.85% | 2.97% | 15.33% | |
66 Neutral | ¥70.12B | 42.82 | ― | 0.90% | 25.26% | 52.87% | |
64 Neutral | ¥2.23B | 21.11 | ― | 0.58% | 11.38% | 146.95% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4704
Trend Micro
6,732.00
-1,365.87
-16.87%
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JP:4493
Cyber Security Cloud, Inc.
1,871.00
138.79
8.01%
Trend Micro Corporate Events
Trend Micro Delivers Strong Q1 Profit Growth Amid Softer Balance Sheet Metrics
May 14, 2026
Trend Micro reported a solid start to fiscal 2026, with first-quarter consolidated net sales rising 9.4% year on year to ¥73.86 billion and operating income up 3.7% to ¥15.56 billion. Ordinary income surged 42.2% to ¥17.65 billion a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.