Trend Micro slashes profit guidance 21% on rising cloud costs

Trend Micro, the Tokyo-based cybersecurity company, reduced its full-year operating profit guidance by 21% following higher-than-anticipated cloud infrastructure costs.

The company, which provides enterprise security solutions, now expects operating profit to decline by 21% year-on-year for the fiscal year ending March 2025, down from its prior guidance. The revision reflects elevated expenses tied to cloud services, as Trend Micro accelerates its shift toward cloud-based offerings.

Trend Micro did not provide a revised revenue outlook but maintained its revenue growth target. The company attributed the increased cloud costs to higher demand for its security-as-a-service products and expanded cloud partnerships.

Shares of Trend Micro fell 3.2% in after-hours trading following the announcement. The stock had gained 1.8% during regular trading hours.

Analysts noted that rising cloud costs are a growing challenge for cybersecurity firms as they transition from traditional on-premise solutions to cloud-native architectures. The shift is driven by enterprise demand for scalable, flexible security solutions.

Trend Micro’s decision underscores broader industry pressures, with peers also grappling with margin compression amid rising infrastructure expenses. The company’s full-year results are scheduled for release in May 2025.