Good day, investors of Trend Micro. Thank you for coming to our Investor Day. This is Eva Chen, your usual CEO and co-founder. Today, I'd like to take this chance to update you on a very important stage that Trend Micro is getting into. That is the AI era. Obviously, Trend Micro's strategy in the AI era will be a big shift and big change. Why? Because Trend Micro's strategy has always been a formula of X equal to cybersecurity problem. And then that equal to I, that is infrastructure change plus U, the user behavior change, and then minus T, the threat landscape change. All of these are going to be hugely impacted by AI technology. And everything we need to do in the AI era could be a very big shift.
I think we already see that Trend Micro in the past 30 years we followed this strategy formula, going and grow until now, but now let's add AI era. Infrastructure, we all know, everybody is changing to GPU computing, AI data center, AI PCs. Infrastructure already changed, and we look at the threat landscape, it's already there. Deepfake, spear phishing, and even automated targeted attacks by AI already is what we see. The only thing that we are not very sure is user. How customer is going to use AI and how it will change their whole IT infrastructure and how they implement their IT, and therefore how we should fit into their new IT system that is in the AI era, so allow me to use a bigger picture of what we see. This AI and the IT infrastructure technology will change in the AI era in our mind.
The whole human beings' civilization and the technology's relationship is swinging between scalability and customization. If you look at before, like water, electricity, or all the things that were very precious, very rare, and only the richest or the most powerful people, like emperors, they control the well, the water system, right? But technology will swing and say, we make it very, very accessible and scalable for everyone to use. That's how civilization uses technology the best way, is using technology to make the real resources swing and become very scalable. But later, when say water is now free for everyone, then there will be another customization value system come out, which look, today you will buy those very expensive mineral water bottles and drink it and pay price for it, right? Even though water is free.
That's the new value system that will be created after the mass scalability happens, then customization will be the next wave of the value system. If we apply that to the IT system, then you will find that how computing power from before the PC, the mainframe at that time, a mainframe is so expensive. Only those big, big organizations can have the mainframe, but then PC network becomes cheaper and cheaper. It becomes mass scalable, but then when we need even more flexibility and all this, then the cloud and the SaaS platform will come out, right? Those are IT systems going through the mass scalability in the past 35 years and customization through the software. Usually, all of this customization, how people use all this computing power is through the software, and that software also changed from originally.
Everybody, every big organization will develop their own proprietary software, mainframe software, and then Microsoft information on your fingertip becomes package solution, package software that is much more scalable, and then SaaS making it even much more scalable, but what is AI do to all of this? AI is, in my mind, a mass scalability for knowledge. We human beings come from agricultural civilization, agricultural economy to industrial economy, and then to knowledge economy. Now knowledge becomes mass scalable. Before, the medical school student needs to study seven years and the lawyers need to read all these big books and accumulate so many cases studied, but now these are available through Gen AI. That's the mass scalability of knowledge, so strategy means that you need to bet your next in the future. What is your next step?
So in Trend Micro, when we look at this mass scalability of knowledge, our bet is next one. It will go to the value come from customization, even more specialized knowledge. That is the next value system that will be created. So in Trend Micro, our Trend AI, we believe it will go to much more privately owned data center. No matter it's sitting in the cloud, but it is a private instance that organizations want to make sure their domain knowledge and their personal information will be more controllable by themselves. That's the scalability of the hardware infrastructure part. User behavior on the software side, especially. Later, I will explain why we believe software will become much more important closer to the data layer, the information layer.
And that's why I will say Trend Micro bet on the future value will come from specific language models plus agentic AI to provide the domain knowledge. In Trend Micro, of course, that domain knowledge is cybersecurity knowledge. But to fit into customer's infrastructure that also go into this direction with specific language model and agentic AI infrastructure, then there will be a different way that we need to implement. Software stack is totally changed. Changed by Gen AI. Before, all the application, each of the application has their own database. They have their data silo. Gen AI break the data silo and make, we call it data is flat now. And from the data directly, organization generate the necessary business intelligence from the data layer. Therefore, security become, we need to follow this type of model.
When customers generate their intelligence, which is what cybersecurity needs to protect the intelligence of an organization, right? So Trend Micro needs to move into a new direction that understands how to fit into customers' specific domain knowledge information flow. And that's why we believe Trend Micro's. We already moved into. We developed our own cybersecurity specific language model called Cybertron. And that Cybertron also connected with a lot of Trend domain knowledge about cybersecurity, how attacker attacked. When we see this step, what is the next step that the hacker will do? That's Trend Micro's domain knowledge. And that is presented in Cybertron and our Agentic AI platform in Vision One. That's how Trend Micro's strategy moving into. But at the same time, like I say, customer's environment will be changed because of Gen AI.
And how do we make sure we understand and can simulate what customer's information flow in their organization? And that's our new technology, information flow digital twin. We already announced this, and maybe you already see that Trend Micro working with NVIDIA, with a lot of other organizations to present this digital twin. Customers can view how the information flows in their environment, and even they can simulate how attacker will attack their information flow and therefore can react according to their company's operation flow. That's the new technology and what Trend Micro bet on our technology and our direction in the AI era. But this direction is not just technology. We understand all this data to intelligent to agentic technology, and we implement it in this way, which is reactive defense to personalized and proactive protection.
That is how Trend Micro will provide our cybersecurity to our customer in every specific environment, industry sector, customer segment. They are different. But utilizing Gen AI, we will be able to scalably provide this very customized cybersecurity need for our customer. How do we do that? We scale our scalability come from our domain knowledge, Cybertron, ASRM. And then we personalize the information with customer's information flow digital twin. That's how we combine them. And then using the ASRM agentic AI, build this platform that is both scalable and customizable for our business and for customer's cybersecurity need. This is not just technology or product change. This reflected in Trend Micro's organization. How we change our organization to it? Actually, we believe we need to establish specific business units that target at very different customer segmentation or industry specific need.
However, we still, Trend Micro, can provide all of this cybersecurity knowledge to enable this different security need in different sectors. The structure is very different. Today, I'd like to introduce all this new business unit and how and why we bet on this direction that Trend Micro needs to be everywhere in the AI era and that everywhere is different. For instance, the new AI data center, when they build it, they need to build together with security embedded in there. That's why we have a newest business unit. We call Mogana that we founded with Wistron and other industry partners. We believe we can help customers when they were building AI data center, when they were implementing AI application, they can have all of this built together, security built in with it for a secure AI operation.
Then, we also have, actually, already a few years ago, we foresee all of this AI. All this new infrastructure will be implemented in something other than the traditional IT computing, such as vehicles, robots. All this physical AI, it requires a very different infrastructure to protect it. And that's our new business unit, VicOne, led by Max Chen. And later on, I think he will come to introduce why this physical AI, robots, vehicles, and all these different devices require a different way of protecting it. And also, I think already seven years ago, we already foresee OT, those semiconductors that were manufacturing all this base for the chips, the AI chips. They need very specific protection for it. And that's TXOne, which is already an independent company from Trend, but we collaborate very closely. So TXOne also is another unit.
But two very important and most big revenue composition of Trend Micro, that is consumer business and enterprise business. Now we also have them kind of separate and become a real business unit because Trend Life, that is for consumer and very small business, they need to have a different go-to-market, different channel, different way of obtaining their security. And the problem they need to solve is not just virus anymore, right? It was scam. It was all this different infiltration that goes to consumer home. Even the little robot that clean your floor probably needs some security also. So that's our new consumer business unit. We name it Trend Life. Protect your digital life. And that will be introduced by Frank Wu and talk about why this is an important next era in the consumer cybersecurity. And last, but most important one is our enterprise business.
Our enterprise business, going through all of this AI era, I'm so proud of our team in the product team, in the technology front. We are advanced. We are the first one and the best one in coming up with all these different solutions for AI era. And now we also transform our organization, our go-to-market, and how we're facing the customer, explain how we protect their new IT infrastructure in the AI era. And that will be led by Rachel Jin, who is, I would say, the genius behind all our technology and product in the enterprise Vision One structure. So that new organization is how Trend Micro, we bet the next value, the big value comes from how do you utilize AI to customize your cybersecurity solution, but also at the same time utilizing Gen AI to make sure Trend Micro's operation is very scalable.
Scalable and customizable provide Trend Micro's strategy that we can both grow our revenue and also our profit into the next five years of the AI era. Thank you. Please listen to our business unit that gives you all of this exciting new roadmap.
Welcome here. I'm very happy to see everybody here. I'm Max Chen, CEO of VicOne. VicOne is a Trend Micro subsidiary. We are focused on physical AI cybersecurity. And how is physical AI cybersecurity about? As everybody in this year already has a lot of experience on agentic AI. And physical AI is also kicking in this year because of the new AI modeling, SOA, SVA was successful to launch, combination with hardware together. So physical AI will be next billion dollars industry. So how this is going to work in terms of physical AI, not everybody knows.
In fact, physical AI is just not new because autonomous driving is the first application of physical AI. That's why Tesla is making the car as a robot taxi, as well as use that technology to apply on the AI robotics, and that's why the physical AI in terms of the robotics and the vehicle, it has a similar technology stack, and physical AI is going to next high growth frontier, and how this physical AI related to VicOne is doing is about how we see the involvement, the progress of the physical AI, it's going to be not one shot. It's going to be four phases.
The first phase actually already happening, which is from autonomous driving, which apply all the sensors together, sensing the environment of the car, use the AI to determine the action, become autonomous driving and go into the robot taxi, go to the delivery bot. That's the first phase. And from 2025 this year, we are entering into the second phase because we are taking this technology combination to AI modeling together to make the robotic become intelligent machine. And we see that it's not immediately in the humanoid because I think there is some technology needed to be breakthrough in order to make the humanoid robotic be able to apply in majority of market. But the first landing production market, it will be industry, intelligent machine, as well as the service sector. And the third phase will be humanoid. And lastly, will be other physical AI applications we're going on.
And in the VicOne, we have been starting our business in the first phase in 2022 to 2025. And the second phase of 2025, just now we are entering into physical AI. And next, let me introduce you about our first phase business summary. And in the first phase, we are focused on the software, hardware integrated embedded cybersecurity for automotive, which we call it the software-defined vehicle. And under the software-defined vehicle, the autonomous driving is a part of the scope. And the market size is quite big. You can see that the market size is from $213 billion-$1 trillion. And what we have done right now is from 2022, we spin out from Trend Micro, take Trend Micro core technology, cybersecurity technology, bring it into the first physical AI application, its autonomous and SDV.
We do major focus on software and hardware integrated cybersecurity, not pure software. In that perspective, we have to do the first things. We build the solution which can solve the customer problem. That is our major focus in 2022. We were successful to build the supply chain risk of security, as well as the vehicle security for the automotive industry. In 2023 and 2024, we are going to the phase called problem solution fit. What does that mean? Means that we need to take the solution to be able to adapt to really real-world production environment and can protect the vehicle defense of cyber attack. Actually, we have been successful doing that. Right now, we were able to penetrate the passenger car vehicle sector, commercial car vehicle sector, as well as industry car vehicle sector.
And we also had autonomous driving supplier and car manufacturer. And lastly, in this year, what we are going to do is really about a solution market fit, which means that we should be able to continue to grow with sustainable growth with the repeated order. And that's what's successful in 2025. And I would like to share with you how it's the output of 2025 in next slide. But one of the key strategic initiatives and what we are moving in is the AI robotic segment. That is our phase two. So in the 2025, until now, we have been making a very great strategic partnership because in vehicle sector, our partnership is the key to make your business success. Globally, we have a semiconductor partnership from NXP. We have a tier one supplier partnership from Aptiv. We have an engineering service partnership from Harman in Japan.
We also have quite a few strategic partnerships starting from Renesas, from semiconductors, from Tier 1 suppliers like Astemo, like Panasonic Automotive, from the service sector from Hitachi and Fujitsu. By doing that, we will be able to successfully land our customers in different segments. I just shared a few examples on how successful we have done in this vehicle cybersecurity. Three out of ten passenger cars, top passenger cars globally, use the VicOne solution right now, and two out of the top 20 commercial vehicles use the VicOne solution right now, and one of the top three construction vehicles also uses the VicOne solution. With this successful landing onto the customer, we will be able to grow our sales from very few million in this year up to Q3. Our total sales number is $7.1 million.
We are going heading for 10 million first time when this new company is established. The next one, I would like to share with you about what is our doing with phase two. How will it be AI robotic cybersecurity about? You can see here, this is the market research data from today to 2033, which the market is going to be $100 billion. I believe it's more than $100 billion because this is a very specific niche on the AI robotic. The next one is about how we do right now. I'm very proud to share with everybody. It's really great news. We are partnership with Deloitte company together over the robotic cybersecurity aiming for U.S. market. How Deloitte is doing, there are pretty much no one probably knows the company.
This company is doing the AI modeling to do the de-identification, protect customer privacy. And VicOne is offering its AI cybersecurity inside the robotics. When we combine it together, we make sure the AI robotics cybersecurity is not only defend the attack, but also take care of the customer privacy together. And we are aiming for the U.S. market in 2026. And we are going to do a big demo in the coming 2026 CES. And next, I would like to share with very, very exciting news. VicOne released the industry's first robotic cybersecurity framework. It's not a regular cybersecurity framework. This framework is talking about the AI robotics attack surfaces typically, and talking about AI modeling attack technique involved inside the robotics, and also AI robotics attack matrix.
Our goal is not only to provide solution. We also set up, take the position as a market leader to want to educate the whole AI robotic, put the robotic cybersecurity in the center place when everybody to develop, to deploy the AI robotic. Lastly, with these two phases together, VicOne business is about the combination together. We have two growth phases. The combination together, you can see here in our sales growth rate in 2026 compared to 2025. Combination two, we are going to grow 96%. From our setup in 2022 to 2026, you can see that in 2022 to 2024, we are really set up the foundation of the company. From 2024 to 2026, our goal in 2026 is going to reach sales number 19.6 million. The combination growth rate will be 136%.
I'm very happy and very proud of what VicOne has done so far. And thank you, everybody here today, to listen to me, to share with the greater progress of VicOne. And let's say I'm proud of VicOne. It's going to be a Physical AI cybersecurity company.
Hello. I'm here to give you an overview of Trend Life and why we want to have this new consumer brand identity. So for many years, Trend Micro has been known as a strong cybersecurity technology company, especially in the enterprise market. This reputation is so valuable, but it also creates a challenge for our consumer business. Most consumers still see us as a technical brand, an antivirus company. So to grow our consumer business, we really need to make a clear shift from a device-centric antivirus-focused brand to a human-focused brand.
This is why we created this new consumer-facing brand, Trend Life. As I said earlier, most consumers still see us as an antivirus company. However, the world has changed. Consumers today are facing new types of risks other than just viruses. They're seeing identity theft, online scam, social media risk. And now with the population and adoptions of AI services, all these AI-driven scams online, AI-generated contents that are so harmful to the teenagers and children, and particularly to those senior groups who are so vulnerable to all these tricks. So consumers no longer worry about just virus. They're losing their trust to digital society, to digital life. They worry about their identity lost, their financial lost. And they worry about the family. They worry about being tricked by the AI. So these are the problems that are very emotional. So people feel unsafe, confused, they're stressed out.
They need more technology. They need more care. This is why the future of consumer protection is not just antivirus, but a digital life protection. This is why we created Trend Life to be our new consumer identity. It's just like Xbox is Microsoft consumer gaming brand. YouTube is Google's consumer video brand. Instagram is Meta's consumer lifestyle brand. Trend Life serves the same purpose for us. Our message is very simple. Trend Life, where intelligence meets care. We want to speak to consumers in a very simple, human, and emotional way while still being powered by Trend Micro Intelligence. With our AI technology detections, with our predictions, and most important, with our 35 years of cybersecurity experience. This is a very important design philosophy of connecting our care to consumers in motion with our products and our customer services.
With our AI technology, we're able to personalize the protection for every single user and create a caring circle for our users to help their loved ones. Care is what makes people trust us, stay with us, and recommend us. Intelligence alone is not enough. Consumers don't buy algorithm. They buy peace of mind. They buy care. We believe Trend Life will give us the ability to create that emotional connection and then to grow our consumer business with the goal of having stronger brand preferences because consumers choose emotional human brands and giving us higher conversion rate and giving us the ability to quickly expand to global. Of course, now we see more and more revenue opportunities beyond just antivirus to a full digital life protection solution.
So now we end up with a very good, stronger ecosystem that allows us to collaborate with the various types of partners to fight against the criminals. Now, why we're so confident that this strategic direction and transformation? First of all, let me share with you the good news that we have. The IDC just released its latest report last month. And we're so proud to be recognized as a leader in a worldwide consumer digital life protection market. And as you can see, we're positioned in the top right corner, which represents the strongest combination of capability and strategy. So let me quickly read the quote for you. We're the first cybersecurity vendor to deliver dedicated anti-scam solutions, offering threat detection and scam prevention, empowered by real-time AI.
This particular leadership placement shows that not only we're leading the market with a clear forward-looking vision, but also we are ahead of the traditional security vendors and are recognized as a true leader in AI-powered protections for modern consumer digital life. What a great endorsement to our efforts and our strategic direction. We all know that the partnership is critical because digital criminal is global. Working with the trusted local groups gives us the knowledge and the reach we need to protect people and grow in the new market. We recently announced a partnership with Cifas, the U.K.'s leading fraud prevention services, to deliver a Just Me app. This is the first of its kind mobile app designed to protect U.K. citizens from identity fraud and online scam.
So by adding our scam check into the Just Me app, not only consumers can see and control how their personal information is used, but also they will be alerted if someone tries to open accounts in their names and help them quickly verify messages, emails, or posts to see if there are scams. So as we expand our global reach into the UK and Europe and the rest of the world, this kind of partnership gives us stronger scam and fraud intelligence, and most importantly, increasing the customer consumer trust in us. So it directly supports our Trend Life missions to protect people from identity theft and online scam. Now, back to our home base, Japan. Let me quickly highlight two key partnerships driving our consumer momentum. First, we partner with local police agencies, prefecture by prefecture.
We now have 46 out of 47 police agencies in each prefecture, and we're soon going to have a 47th by the end of this year, so they use and recommend scam checks to help citizens, companies, and government offices to fight against online scam. This level of trust from law enforcement is extremely rare. It shows the trust and credibility and the strength of our solutions in protecting citizens. Second, our partnership with JCB, the largest credit brand in Japan, with over 160 million active subscribers and cardholders. So we integrate directly into their apps. This gives us a massive reach and protects consumers right at the moment when scam attempts happen. Together, this partnership shows the trust, authority, and financial institutions believe in us, and they help us protect more people from scam and fraud.
In fact, since we shifted our strategy two years ago from device-centric security to scam prevention, identity, and digital life protection, we started to see a rapid growth. Overall, our digital life protection revenue is now 34% of total revenue globally. It's a significant increase worldwide, and now, with more partnership and global expansion, we believe Trend Life will help rejuvenate and accelerate our entire consumer business. Now, let me quickly wrap up my session. We believe with the creation of Trend Life, we're able to transform our consumer business from a traditional antivirus vendor into a modern AI-powered consumer protection brand and shift our focus from just protecting devices to protecting people, protecting their identity, their data, their privacy, and most importantly, their family and digital well-being. This is very important and strategic to us because when protection feels personal, consumers trust us more.
When consumers trust us more, they will stay longer. They will buy more. They will become our fans. They will become our advocates. So we can build a long-term loyalty and recurring revenue. Thank you for your support.
Hi, everyone. I'm Rachel Jin. I'm leading our enterprise cybersecurity. I'm based in Texas, the US. Today, I am going to walk you through how we are transforming enterprise cybersecurity. 2025 has been a real inflection point for us, and we made a bold decision. Our entire enterprise business is becoming Trend AI. This isn't a cosmetic rebrand. It's a complete shift in how we operate and where we see the market going. Trend AI is a very intentional name. It signals clearly that we are going after leadership in the AI-secured market, not gradually, but aggressively.
We needed a brand that reflects the modern cybersecurity challenges our customers face, and the shift to Trend AI opens new opportunities and new markets for us because AI is changing who buys security, how they buy it, and the problems they prioritize, so the name reflects our ambition and our direction. Trend AI is built to lead the next era of cybersecurity, and this is the foundation of Trend AI, our Vision One platform with 11 solution families. It unifies endpoint, cloud, network, email, identity, AI security, and data security into a single platform, all powered by our threat intelligence and could be managed through our services. On top, we added cyber risk exposure management and modern security operations. This is also where AI does real work, prioritizing exposure and risk, correlating signals, and accelerating investigations.
And we can deploy anywhere: SaaS, on-prem, government cloud, private cloud, and we also have multi-tenancy architecture for our service providers. Trend AI enters this market with extremely strong enterprise credibility across endpoint, email, network analysis, attack surface management, CNAPP, and XDR. We are constantly in the leadership quadrant with Gartner, Forrester, and IDC. And it's not just analysts. Customers choose us across momentum, results, and usability. And partners vote with their feet as well. We are named a global cybersecurity champion by analysts. So as we move aggressively into AI security, we are doing it from a position of real strength, trust, and validation in the enterprise market already. One of our biggest competitive advantages is our Threat Research Foundation. For more than 35 years, we've built the strongest threat intelligence network in the industry, with over 19,000 internal and external researchers contributing.
Last year alone, we discovered 1,700 vulnerabilities, and analysts showed Trend covers 73% of all publicly reported vulnerabilities, and through our Trend AI Zero Day initiative, we protect our customers up to 96 days before vendor patches come out. This level of depth and global visibility is very hard for any competitor to replicate. We have been running the world's largest bug bounty program for 20 years. Our global hacking events, Pwn2Own and others, run multiple times a year across different regions, different countries, giving us early insight into emerging attack techniques. We have uncovered high-impact vulnerabilities in Tesla, Adobe, Microsoft, NVIDIA, and many other major vendors, and Trend Research Group works closely with law enforcement worldwide, giving them very advanced intelligence to disrupt cybercriminal operations. This ecosystem strengthens the entire security community and gives Trend AI a massive advantage in proactive protection.
Our install base remains a huge growth engine. Today, we have $1.3 billion ARR, but the total enterprise opportunity within our existing customers is $8.6 billion. That means we have $7.3 billion of incremental ARR that we can unlock simply by expanding platform adoption inside our 25,000 enterprise customers. So these customers already trust us. They already run Trend in critical parts of their environment, and now they are ready to modernize towards Trend AI platform. For new enterprise customers, our go-to-market is very focused and very intentional. We are landing new logos through value differentiation and fast time to value. Outcome-based programs like DFIR help us prove value quickly and also expand very fast. We target very clear ideal customer profiles across major verticals, and we scale through our channel ecosystems, giving us efficient coverage and strong leverage as we grow Trend AI adoption.
Our small enterprise growth engine is our MSP ecosystem, and it's scaling extremely well. We now have over 140 strategic MSPs selling Vision One, and 59% have already adopted cyber risk exposure management. Once MSP adopts CREM, their average ARR grows four times because the solution naturally pulls in more AI capabilities. This motion is high volume, efficient, and repeatable, and it positions Trend AI as the leading AI security platform for small and mid-market customers through MSP partners. And our large enterprise recurring revenue continues to move in the right direction, both in growth and in mix. We are at $1.1 billion ARR, but the most important story is the shift toward the platform. Legacy perpetual and older subscription products are declining. We know that that's intentional, as expected, while Vision One platform, the AI platform ARR grew 74% worldwide, reaching $412 million.
This shows large enterprises are modernizing toward Trend AI platform rapidly, and our platform-first strategy is driving healthier and more predictable recurring revenue. This slide shows how fast the platform is scaling. In just a few years, we've grown Vision One customers from 1,600 to 11,200, and attach rates have climbed to 46%. Over the past year alone, we added more than 1,100 new Vision One customers, and the platform ARR grew 74%. Customers on the platform also generate 3.6 times higher ARR than non-platform customers. So the platform is not just gaining adoption. It's transforming the revenue profile of the enterprise business. The platform solution fundamentally changes customer outcomes and our business economics. Remember, we have 11 solutions.
Customers using only one solution retain at 80%, but as soon as they adopt three or four solutions, retention jumps above 90%, and customers using four or more solutions retain at 94% and deliver eight times ARR. So platform expansion does not just improve security outcomes. It dramatically increases customer lifetime value and long-term growth. Vision One adoption keeps expanding quarter after quarter. Average solutions per customer grew from 3.1 two years ago to 4.9 today, and customers using four or more solutions now represent 77% of our enterprise ARR. This shows that multi-solution adoption is becoming the norm. This is exactly why we built a platform. Once customers start using the platform, they quickly find value in more solutions, and expansion becomes natural and predictable. Cyber risk exposure management is becoming one of the fastest scaling solutions in the platform.
Since GA, we've reached over 4,300 CREM customers, and these customers now adopt on average 6.4 Vision One solutions, significantly higher than the platform baseline. So CREM is driving platform expansion and has become a very key accelerator for Trend AI adoption. This is one of my favorite slides. This slide shows just how strong the Vision One platform is in terms of expansion. Vision One NRR has constantly outperformed, and in Q3 2025, it reached 136%. That means not only are customers staying with the platform, they are expanding year over year. In contrast, our older non-platform products, both perpetual and subscription, continue to decline, which is exactly the shift we expect as customers modernize. This is a very clear signal. When customers move to Vision One, the AI platform, they adopt more solutions, increase usage, and drive much higher long-term value.
Platform NRR is one of our strongest proof points that Trend AI strategy is working. Innovation is the engine behind Trend AI's growth, and 2026 is also about transforming the SOC with AI. Enterprises are drowning in alerts, identity signals, and cloud noise, so we are building on AI-driven agentic SOC that actually does work for the analyst. All of this is built on our cybersecurity large language model and small language model, the AI stack. This is where the market is heading, and Trend AI is leading that shift. Trend AI is not just a platform. It's an ecosystem. Vision One integrates across over 900 third-party data sources, from identity to cloud to network to vulnerability management. We can onboard any customer logs in three hours, which removes one of the biggest barriers to SIEM and XDR adoption.
All this data flows into our data lake, enriched through our intelligence layer, and then acted on by our agentic layer. This ecosystem gives customers end-to-end visibility across their multi-vendor environment, and it also positions Trend AI as the central intelligence layer of the modern environment. Partners are a huge accelerator for Trend AI. AWS continues to be a very strong ecosystem for us, driving $2.4 billion in gross sales. This shows two things. One, customers trust us as the security layer on AWS. Two, AWS actively brings us into their largest cloud modernization projects. Beyond AWS, we are also scaling across Microsoft and Google, increasing reach and simplifying procurement for enterprise buyers. And we are deepening relationships with NVIDIA, Kyndryl, IBM, Dell, and more, all strategic for AI security, infrastructure modernization, and large-scale enterprise deployments. These partnerships amplify our platform and also open powerful new revenue channels.
In 2026, we are completely sharpening our go-to-market machine globally, and here is the example in the US. We are dividing the business into strategic, commercial, and volume based on ARR, so every customer gets the right engagement model. For large enterprise, our focus is very clear: retain and grow. We are building deep vertical motions: public sectors, financial services, healthcare, and more. And all of these verticals we set up because these customers expect specialized value, not generic selling. For small enterprise, where we have more than 500,000 customers there, we are creating a channel-led engine to acquire and scale efficiently. This structure lets us move faster, improve productivity, and unlock much stronger US growth. We are moving away from individual seller to squad-based teams, and we are moving from regional selling to vertical-focused selling. This helps us go deeper into each industry and deliver value much faster.
We are also investing in forward-deployed engineers in key opportunities. They bring early value to customers and feed real-world insights directly back into our product. And we are elevating customer success to be front and center for every account, so we manage customer happiness, adoption, and expansion in a much stronger way. All of this is designed to move from individual ownership to shared success with our customers. So today, you've seen the transformation we're driving with Trend AI. We have the brand, we have the platform, we have the technology, go-to-market strategy, and the execution model. We are leading this next era of cybersecurity. This is our moment. Thank you for your time, and welcome to the next chapter of Proactive Security: Trend AI.
Hi everyone. My name is Kevin Simzer, and I'm the Chief Operating Officer for Trend Micro.
These are exciting times, and I'm sure you can feel the energy from the team. Eva kicked us off with setting the stage, describing the largest infrastructure change of our lifetime, all things AI, landing with how important it is for us to establish clear and distinct missions: the operating companies with myopic focus and investments in and around AI. Max talked about our important mission to secure EV automobiles and robotics. Frank is leading our charge in the consumer cybersecurity market and, in particular, expanding our total addressable market into non-device protection. Finally, Rachel brought things home with all things enterprise and that massive opportunity that's in front of us, that very large and growing market. The acceleration of our go-to-market starting in the U.S. has begun, and it is so important. Let me wrap this all up now.
Now, if you are like us, we love to look back before we look ahead. Just feel it's important to reflect on where we have come from. If you look back to our last full-year performance, I'm so pleased to say we accomplished exactly what we set out to accomplish. Net sales grew by double digits, operating income increased by 48%, and we continue to execute on our strategic goals of attaching Vision One and growing our consumer non-device protection. At the same time, we rewarded shareholders with 100% of our income distributed in the form of dividends and share buyback. In 2025, year to date, we continue to execute towards our strategic goals despite the macro uncertainties. Every function in Trend is leveraging AI internally and finding efficiencies. That is helping us to increase our overall operating margin by being more productive and effective in our day-to-day jobs.
I'm very excited that we're fast approaching half our large enterprise customers' installed base accounts now with our flagship platform attached. That means 11,400 customers who are paying and deployed on that platform. In our consumer business, we've worked our way through the bankruptcy of our merchant-of-record e-commerce provider while really staying focused on driving beyond device protection up 35% year over year, and from a company standpoint, we've accomplished all of this while investing in automotive, robotics, and instantiating our newest offering in AI consulting and systems integration. I'll tell you, the market dynamics have shifted dramatically towards all things AI, and we remain strong in our conviction that following those large infrastructure changes is absolutely critical. We have a proven track record of success by following those changes because we know that translates into opportunity as threat actors also follow those changes and look to leverage where possible.
Goldman Sachs boldly claiming that the AI boom has just begun, and Gartner predicting worldwide spend on AI is to exceed $3 trillion by 2029. There is no more telling sign of the potential cybersecurity threat within this massive AI opportunity than the recent news from Anthropic. Anthropic is one of the largest of the large language models companies, and they reported that they detected a threat actor that had built a very sophisticated and fully integrated, largely autonomous cybersecurity attack campaign capable of discovering vulnerabilities in enterprises, dynamically creating exploits on the fly, and ultimately exfiltrating valuable data with little to no human intervention. I'll tell you, the promise of AI is real. Unfortunately, threat actors have also figured this out. So what are we going to do about it?
Each of our businesses will focus specifically on a cybersecurity addressable market, from enterprise IT to consumer, from OT to automotive and robotics, and our newest AI consulting and systems integration. The top three businesses that I mentioned now have a dedicated team of sales and marketing, plus research and development, and they're leveraging a set of common corporate services like finance, HR, legal, and IT, thus allowing each of those businesses to focus on what matters: the customer's problem. The bottom two businesses are operating completely independently: SaaS, a sustainable and superior performing business. At Trend, we like to think of things in terms of a life cycle and maintaining that balanced approach of driving top line with an eye towards the bottom line. In the bottom left quadrant, we have two small but very hyper-growing businesses called VicOne and Mogana.
Yes, small today, but very big potential in terms of the future with 130% compounded annual growth. In the high-growth quadrant, we have Trend AI with an 8% compounded annual growth and a massive opportunity in protecting enterprises and their AI infrastructure. And why that is so important for us to be accelerating our go-to-market transformation, to get ourselves positioned to be the cybersecurity company protecting AI infrastructure. We are reinvigorating Trend Life, our consumer business, with a fast-growing opportunity in the beyond-device protection. Deepfakes, anti-scam, these are real issues today for our consumers. And finally, needing to make sure we are doing a good job of managing our technical debt and upgrading our customers off of our legacy offering, we also have plans to do just that.
This life cycle, working together to drive sustainable superior performance over the long haul, is why we have been around for 35 years, and we plan to be around for another 35 years. In terms of our North Star, if you look closely at this road to 2028 pro forma P&L, you will see that not a lot has really changed from our road to 2027. We will continue to strive for healthy top-line growth while also increasing the bottom line over time. The only real difference is that we've made some measured increases in our sales and marketing and our research and development operating expenses in order to ensure that we're leveraging the AI opportunity that sits right in front of us. Now, I titled this chart 2026 Expectations for a Reason. I wanted to be clear that this is not guidance.
That will come when we release our Q4 and full year 2025 results in the February timeframe. However, I did want to take this opportunity to plant some seeds on what we are thinking about as we've made it clear that we do plan on increasing our investments. We are planning for 2026 that our net sales will see an increase in the top-line growth within the 5%-7% range based on those investments in AI and transforming the go-to-market machine in Trend AI and investing more in Trend Life to capitalize on the non-device protection. We anticipate sizable growth in both VicOne Mogana. However, those missions are still small and not really that material relative to our overall top line at this stage.
Operating margins in 2026 will be in the 17%-19% range, and that means that our operating income will be approximately flat from 2025 as we make the necessary investments in all of our businesses to leverage the opportunity in front of us. We continue to have a very strong balance sheet with cash and no debt, and it remains our plan to not accumulate more cash within the business. As such, we felt like there was no need for any change to our current policy, which allows us to reward shareholders with 100% of our net income in the form of dividends and share buyback. Overall, we feel like we are in a very good spot, and our new structure positions us very well to maximize the AI market opportunity.
Trend AI represents 80% of our total business, and we expect to see continued success with the most comprehensive AI-powered cybersecurity platform on the planet. Increasing sales and marketing investments in both Trend AI and Trend Life will help to fuel the growth in those businesses. And finally, we are choosing to invest in these new burgeoning areas where cybersecurity absolutely needs to be built in, and that is EV automobiles, robotics, AI factories, and data centers with our end-to-end consulting and systems integration. The future looks bright for Trend Micro. I want to thank everybody, and I look forward to your questions.
You can speak in any language, but maybe English. Could you ask in Japanese for the sake of the recording? Yes.
Okay. I will speak in Japanese. Confirmation to Kevin-san, in your final presentation, you talked about operating profit for next year rising by 17%-19%. You said, I think, I think that was written, but before you held the IR day, you said it would not be a hockey stick, but it would be like a U stick, a U letter shape. That is, you'll aim for 30% of operating profit toward 2030. I think I heard that pitch back then. So this term, you'll be investing in people, so that's why your operating profit margin may not improve as much. I think that's how you started the year, but how about next year? Next year, you will be investing in various solutions for each segment, which means that your profit margin may drop further. So how should we look at this operating margin against your medium-term plan? That's the question.
Thanks, Sato-san. I'll start, and perhaps others will chime in, but let me start.
First of all, from a philosophy standpoint, we've been publishing the road to plans for several years now, and we're really trying to be consistent in using those as a way of telegraphing what our North Star is, where we're pointing the business from a business strategy perspective, and we feel like we've been consistent in that we are really pushing the business hard to drive those healthy top-line growth numbers. We think of that as something that we need to do and we want to be able to do, so that's job one, but we're always keeping an eye to the bottom line, and you can see in every model we've published, we've always said that we will be increasing our operating margins over time, over time, and in the road to 2028, that plan remains the same.
We are still targeting the 8%-10% range in terms of top-line growth, and on the bottom line, a 25%-27% operating margin on the bottom line is an increase from where we are today. We plan to increase it over time. You could tell from the presentations that we've really decided to jump in and go all in on a lot of things in and around AI because the opportunity is there. Yes, we are making some investments in 2026 in order to capitalize on that. That's why you'll see that our operating margin for 2026 will be the operating income for 2026 will be flat from 2025.
Okay. [Foreign language]
One more additional question. Focused new services, like the big one and other focused new services. Of these four services, what would be the highest margin business? Which one of these four will be the highest margin?
The highest margin business that we have in the company is Trend Life. That's our consumer business, is our highest margin business that we have. Trend AI has a very, very healthy margin. So our enterprise business has a very healthy margin along the way, but Trend Life has the best margin. So with the enthusiasm that I hope you picked up in both Frank's presentation and Rachel's presentation, if we can get top-line growth happening there, margins will come.
Okay.
Additional comment, the spin-off startups like VicOne or even Magna, they're startup companies. So they will be making losses but delivering high growth. So that will also affect the consolidated margins.
Okay. Okay. That's it for me. Thank you.
[Foreign language]
Any other questions?
[Foreign language]
Hello, this is Kikuchi, SMBC Nikko Securities. [Foreign language] I have a follow-up question.
[Foreign language] Next fiscal year's guidance [Foreign language] Well, we will have to wait until next February, you said [Foreign language] But is the target margin [Foreign language] In terms of operating income or profit, do you have any specific target, Kevin? [Foreign language] you said it was going to be flat [Foreign language] So [Foreign language] You showed the range for the revenue and the range of the margin [Foreign language] And if we multiply these two, the profit go up or down[Foreign language] So what will be the target or objective of the operation? Where is your target? And I think your plan says that the expense will increase and you'll be making investments [Foreign language] But what are the specific investments that you'll be making? Well, I believe that perhaps it's a headcount increase or increase in sales marketing[Foreign language]And for R&D, we don't have any specificity, but what will specifically increase? Is it outsourcing cost or something else? Those are the two questions.
I can start and others can jump in. Yes. So from a 2026 perspective, you did summarize it correctly in terms of we will be providing full guidance when we release our 2025 fiscal year Q4 and full year results in the February timeframe. So that's when we will provide full guidance. But we wanted to use this opportunity to really telegraph where we think the business is headed in 2026. And we are making investments in sales and marketing in both Trend Life and Trend AI. We're making investments in R&D related to the AI work that we're doing in both Trend Life and Trend AI. And as Mahendra said, we're also making investments in VicOne, the robotics and automotive initiative that Max described, and this instantiation of this new AI systems integration and consulting business.
Those combined represent the increased investments that we are making. We feel like we're still going to land with operating income flat from 2025, so we will have roughly the same operating income. The margin will be slightly smaller than what we're finishing the year with. It will be in the 17%-19% range. Still very healthy, and we do plan to increase it as we move along, but we want to really take an opportunity to go after this burgeoning market all exploding in and around AI right now.
Let me talk about the investment in the R&D side. You can see we are investing in creating our own SLM, which is a specific language model. Plus, we are creating this digital twin for all our major customers. Those are utilizing the new GPU computing power, new AI platform.
Those, at the same time, we still need to maintain original CPU-based computing. During 2026, you can see that double parallel. We both are investing both of those computing power. That's on the R&D side, major of our development, moving on to AI computing platform. Other than that, I'd like to have Rachel and Frank talk about specifically how they will invest in their own Trend Life and Trend AI business. Maybe starting with Trend Life. Yes. Like Kevin said, that specifically on sales marketing, if we look at our consumer business, the majority of our market is in Japan, right? We have some traction in the rest of the world, but I think there's a lot of room there. We're going to add in more sales and marketing beyond Japan, right, particularly in Europe, as you can see some of the partnership that we have.
But we will be very cautiously selecting the partner instead of regularly following the traditional antivirus channel strategy. I think the beyond AV is a very different go-to-market strategy. So partnership is most important than the retail. Okay. So mostly will be outside of Japan in terms of the sales marketing investment in 2026 for Trend Life.
Yeah. So for Trend AI, I will talk about it from three perspectives. One is go-to-market, and the second is from the branding perspective, and the third is just to echo what Eva is talking about, R&D. So from the go-to-market perspective, if you saw my presentation, we are really putting some effort into reshaping our go-to-market, the methodology and the engine. And for example, we are transforming from regional-based to vertical-based.
We are also transforming from individual seller responsibility and ownership to shared squad mode, which we are pushing our tech bench in front of the customers more and more, which is the customer success motion. Actually, this is also the cost because you are moving more tech bench and you need more people to serve our accounts and customers. But that makes sense because customers want to have deep industry conversations. They want to understand how your product can help us. And also, especially in the current world, cybersecurity becomes so complicated. And also in the AI and more and more technology-driven conversation is needed in the selling process. So that is what we are transforming, the go-to-market from the US and also go out in the rest of the world.
From the branding perspective, because of this rebranding, we see this as the opportunity to tell the world, one, we are very aggressive going to the AI security market, and we are investing a lot on this. Also, second, this is also a reminder, we are building the modern platform cybersecurity platform, which is our Vision One. We are kind of upgrade and migrate a lot of our legacy products and legacy product users into the modern world. We want to use this modern brand and also own the market and also help customers to have changed the perception about what Micro is delivering. The last part, just to echo what Eva said, R&D part. Yes. We use AI to improve our productivity, and also we use AI to improve our security outcome.
And at the same time, we are also using our cybersecurity platform to protect our AI journey end to end. So that's all our investment in 2026 from go-to-market to the branding and also how we are doing the R&D.
[Foreign language]
Thank you. Negi-san, can you please give us a comment from the CFO perspective? Leading to next year, I think the expense will go up by 1%. That's my understanding. So hiring will increase. That was the traditional driver for growth of expense. But you're talking about R&D expense to be added. This is a little unusual. Headcount [Foreign language] Is this going to be mostly headcount-based cost increase, or is this a different kind of a cost increase for the whole of Trend Micro?
So thank you, Kikuchi-san. I think the headcount-based cost is there.
But as Eva mentioned, we are also investing in our model development and the backend for that. And this is a GPU-based backend using NVIDIA infrastructure. So there will be some cost of building that backend also. But all that helps in increasing the productivity of the company and delivering better response to the customers. So this is a combination of both people cost as well as some backend infrastructure cost.
[Foreign language]
Thank you. That's all from me.
Thank you.
[Foreign language]
Increasing ever since. And so we would like to see what the drivers for this increasing Vision One. And I guess you'll be increasing in terms of the number of robots or what sort of partners would you be partnering with? I think you have a partnership with Tesla already. So if you could talk about Vision One and the backdrop to why the business is growing so much.
Okay. So I think one, when you look at our we have two sectors. One is automotive, and this is robotic. Our major growth came from the automotive. And the growth is due to the investment on the vehicle cybersecurity because of the automotive vehicle cybersecurity, the whole sector start from the early day COVID compliance. We're not going to transformation. It's like something like IT security transformation means that the automotive company, they are starting to set up the security strategy. They start to set up the security organization. They hire the ITs to do on the security. So therefore, that is the main core why to resolve the security adoption. And the second driving force is because of we are reach globally. Our major headquarters is in Japan, and we also reach out to Asia, Europe, and the U.S. side.
We will be able to build the track record. We are literally the market leader right now. And you see our three of the top 10 passenger cars in our customer. So we will be able to leverage on the reference and to get into the new customer. In scaling our business still in a new customer acquisition mode. So we are continuing to acquire customers because these two forces led us to growth. One is the whole industry starts to convert to the transformation on the cybersecurity. So they are putting the strategy and the budget on it. And secondly, we want to build the good foundation, which we can leverage to continue to capture the opportunity. Also, because Vision One actually has a product that is onboarding to the device. And it was charged by per vehicle shipped.
So as more vehicles shipped to the market, then VicOne's revenue grows. Yes. Yeah.
[Foreign language]
The number of the security products that are installed in these cars increase, then there will be a linear increase in parallel in your sales and revenue as well. Is that the correct understanding?
Yes. I think that is also one of our business models because we are charging on the per car. So it means that our growth, except what I said, our organic growth means that when one customer purchases our solution in one car and there are two increase, one is they are selling more cars, then with more licenses, and then they have a new model, they will apply the new license too. So that is one of our organic growth engines.
[Foreign language]
Thank you. New 2024 Roadmap to 2028.
You talked about 8%-10% increase in net sales, and that's maintained. But next year, in Vision One, I think you will shift from legacy subscription to Vision One. [Foreign language] And of course, there will be a move after. So the net sales increase will most likely slow down as a result, I presume. So in the road to 2028, from two years later, I believe that your sales will increase to offset and supplement this decline. Is that the correct idea?
Yeah. Maybe I can start, and then Rachel can jump in and add color. Yes. From a model perspective, as we've been talking about, we have part of our existing customers that are running some of our older foundation products that we are vigorously working at upgrading them onto our latest and greatest platform. And Rachel talked about how great the results are so far.
We're sitting at 47% attachment rate today. Year to date, 11,400 of our customers have already upgraded. So we're doing a really nice job of that. And those upgrades will continue into 2026. But then what Rachel also described is that once we get a customer upgraded onto the Vision One platform, we have much more expansion potential. So that's where we see over time that getting those customers on Vision One, we will see that the expansion potential will help us accelerate the growth in Trend AI. But Rachel, maybe you can add some color on how we're doing on that SaaS migration.
Yeah, sure. So for the legacy SaaS part, firstly, Vision One actually covers all of these legacy SaaS, let's say, functions in a modern way because we build this using the latest technology. And so we actually have the program at the end of this year.
And every single legacy SaaS customer, starting from 2026, they cannot, when they do the renew, they will renew our Vision One with our Vision One. When they buy new, they can only buy Vision One. We kind of move this more aggressively because it's already proved that Vision One gives a better user experience. And also, Vision One gives a better result for us as well, like 74% ARR coming from Vision One and 136% NRR coming from Vision One. And also, one thing I want to point out is for the legacy SaaS, that potential is not just, for example, I'm using legacy SaaS email, I migrate to Vision One, and it's the same product. The expansion is the key because of this NRR 136%, which means when we do this legacy SaaS migration, it's keeping these customers with Trend Micro because they have better user experience.
But the key is they see the other 10 solutions, nine solutions. They have huge potential to contribute more revenue, ARR, and to the overall result.
Thank you. [Foreign language]
One last point. Your sales organization, your system was changed a bit, I believe, this time. And the enterprise sales, the tech engineers go with you in order to enhance your budget ARR. But if you are seeing results already, then [Foreign lamguage] Is that because your past sales initiatives were not going well? What was the reason for changing your sales methodology or sales operations this time?
Can you want me?
Rachel, do you want to take that one?
Yeah. Yeah, sure. So for the sales organization, that's right. We are doing some transformation. And we do this transformation because the technology and product and industry transformed.
Like I just mentioned, cybersecurity in the past, for example, years ago, Trend Micro, we sell more about EPP solution and endpoint solution, email security solution. These are all point product solutions. Now, since so many years and now till today, we are selling platform, which means that we have higher demand and higher standard on the sales force. Every sales force, when they go to customers, they kind of need to focus on what customer need and any solution they need to pick to see how I'm solving your problem using the entire platform. So it makes the cybersecurity entire solution portfolio to be more complicated. That's also why we see because of this technology changing and also because of all of these AI, you need to have all the large language model, small language model, all of these knowledge in.
The best case is you need to put the expert in front of the customers more than before. So one of the things we are this kind of transformation, I would actually call it this is business transformation. It's kind of technical leader and the sales leader. They kind of become interconnect together to be business leader, to grow business together. So I think this is not because Trend just sitting here wants to change. It's because the entire technology industry is changing. Product change, go to market machine needs to relatively catch up with how we are innovating the platform. That's the reason behind.
I'd like to maybe highlight something about Japan, our home country's growth. In the past two quarters, we really see Japan back to the road, and two things.
First, if we talk about the migration from the legacy SaaS, Japan has the biggest endpoint market. And Japan is right now, finally, we get them to migrate into Vision One. And second, Japan also is the one that changed the first, changed the whole sales organization. And I think Japan's salespeople just told me that they feel before we were selling product individually. So the talk with customer or general partner is all about product and the renewal business. But now we are going to customer and talking about their cybersecurity strategy and how they are going to allocate their cybersecurity budget. This is a total different sales motion. And we also see that already happening in Japan, the overall deal size has increased in Japan. So I just want to say Japan, we haven't been seeing Japan has a very good growth in the enterprise business.
Now Japan is leading this transformation and already showing really strong growth in the enterprise. I believe that growth will start to go to the other region, especially U.S.
[Foreign language]
Thank you very much. We're looking very much forward to your future expansion. Thank you very much.