Analysts cut Trend Micro stock target to JPY 5,000.00

Published on 10/07/2026 at 03:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

2026 operating income guidance fell to JPY 44.40 billion from JPY 56.40 billion. For Trend Micro stock, Q2 revenue rose 13.00 percent to JPY 74.74 billion.

Trend Micro, JP3637300009, Illustration mit AI erstellt.

Trend Micro Incorporated (ISIN JP3637300009) faces a lower analyst target of JPY 5,000.00, down from JPY 5,300.00 in the September 11, 2026 update from Simply Wall St. The adjustment comes as investors weigh stronger recurring revenue against higher cloud and artificial intelligence costs.

Target cut meets cost pressure

Simply Wall St says the target reduction reflects revised assumptions for fair value, revenue growth, profit margin and future price-to-earnings multiples. The report links the pressure to higher cloud-related expenses, including artificial intelligence token costs.

The target change is material: JPY 5,000.00 is JPY 300.00 below the earlier JPY 5,300.00 level, a 5.66 percent reduction. That comparison matters because the company is still expanding its recurring-revenue products while absorbing the cost of the underlying infrastructure.

Revenue grows as profit falls

Trend Micro reported second-quarter 2026 revenue of JPY 74.74 billion, up 13.00 percent from the second quarter of 2025, according to Simply Wall St. Net income was JPY 3.46 billion, down 37.00 percent year over year, while profit margin declined to 4.60 percent from 8.20 percent.

The earnings mix explains the cautious valuation response. Revenue growth remains visible, but the lower margin shows that expansion costs are arriving faster than profit conversion in the second quarter of 2026.

2026 guidance sets the hurdle

Trend Micro lists its second-quarter 2026 earnings release dated August 13, 2026 and identifies the Tokyo Stock Exchange Prime Market listing under ticker 4704. The revised fiscal 2026 outlook keeps net sales at JPY 301.50 billion but lowers operating income to JPY 44.40 billion from JPY 56.40 billion.

The operating-income change equals a 21.28 percent cut to the previous guidance and points to a sharper near-term profitability test than the revenue line alone suggests. The company also reduced expected net income from JPY 36.60 billion to JPY 30.70 billion for fiscal 2026.

Prior close sets the reference

The prior close at Lang & Schwarz was EUR 39.36 on October 5, 2026. Trend Micro's primary listing is the Tokyo Stock Exchange Prime Market, where the reference share currency is JPY.

The further course of trading is shown by the continuously updated real-time quote of Trend Micro stock.