Trend Micro's revenue kept climbing through the first half of the year to June, but the money it kept fell hard. The Tokyo-listed cybersecurity group's net sales rose 11.0% year on year to ¥148.6bn in the six months to June 30, up from ¥133.9bn a year earlier, driven by demand for its Vision One security platform. Operating profit, meanwhile, dropped 23.5% to ¥21.8bn.
The gap between rising sales and falling profit came from one place: costs. Combined cost of sales and selling, general and administrative expenses rose 20.3% to ¥126.8bn. Trend Micro's own explanation names three drivers: personnel costs inflated by a weaker yen, AI token costs embedded in its cloud-related spending as it expands product and service capacity, and new marketing costs tied to launching two freshly split business brands, TrendAI for enterprise customers and TrendLife for consumers.
| Metric | H1 to June 2025 | H1 to June 2026 |
|---|---|---|
| Net sales | ¥133.9bn | ¥148.6bn |
| Operating profit | ¥28.5bn | ¥21.8bn |
| Ordinary profit | ¥21.5bn | ¥24.8bn |
| Net profit (parent) | ¥14.3bn | ¥15.2bn |
Two lines further down the income statement tell an easier story. Ordinary profit rose 15.6% to ¥24.8bn, helped by the disappearance of a large foreign-exchange loss the company had booked a year earlier. Net profit attributable to parent shareholders climbed 6.2% to ¥15.2bn. An investor reading only the bottom line would miss that the underlying operating margin got worse, not better.
The enterprise business, sold under the TrendAI brand and anchored by Vision One, generated ¥119.4bn in revenue, up 11.9%, helped by yen weakness and continued migration of customers off discontinued standalone SaaS products. Growth by region was uneven: Japan revenue slipped 0.4%, while the Americas grew 6.6%, Europe 16.6% and Asia-Pacific 20.1%. The consumer business under the TrendLife brand added 7.2% to reach ¥29.2bn.
Trend Micro's preferred growth metric, annual recurring revenue, grew a more modest 5% year on year once currency effects are stripped out, the company said, as Vision One's ARR gains continue to outpace the decline in older standalone products. That 5% figure is not the same as the currency-flattered 11% revenue growth in the headline number, and the two should not be read as interchangeable.
The filing arrived alongside a separate statutory confirmation letter attesting that the interim report contains no material misstatements, signed by chief executive Eva Chen and the company's finance chief. Trend Micro did not break out a yen total for AI token spending specifically, so investors are left weighing an 11% sales gain against a 20% jump in aggregate costs, with margin recovery hinging on whether the company's shift to a flexible, credit-based pricing system for Vision One lifts revenue as fast as it lifts the computing bill.