Trend Micro Q2 2026 sales rise but profit declines

Trend Micro Incorporated on Tuesday reported a rise in second-quarter 2026 sales but a decline in profit, as higher operating expenses weighed on net income.

The Tokyo-based cybersecurity company said revenue increased to 74.3 billion yen ($495 million) in Q2 2026, up 6.2% from 70.0 billion yen in the same period a year earlier. The growth was driven by demand for cloud security and enterprise solutions, the company said.

Net profit, however, fell 12.5% to 12.1 billion yen from 13.8 billion yen in Q2 2025, missing market expectations. Operating expenses rose 8.9% to 52.2 billion yen, reflecting higher research and development costs and increased spending on sales and marketing.

Chief Financial Officer Mitsuhiro Okada attributed the profit decline to "intensified competition and investment in future growth areas." The company maintained its full-year guidance, reaffirming revenue growth of 5-7% and operating margin expansion despite the near-term pressure on profitability.

Analysts had expected net profit of 13.5 billion yen, according to a Refinitiv consensus estimate. Trend Micro’s shares were down 2.1% in after-hours trading following the results.

The company’s cloud security segment, which includes offerings for hybrid and multi-cloud environments, continued to expand, contributing 41% of total revenue. Enterprise solutions, including endpoint and network security, accounted for the remainder.

Trend Micro reiterated its focus on innovation and cost discipline, though it acknowledged that macroeconomic uncertainty and geopolitical risks could impact demand in the second half of the fiscal year.