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    Is Trend Micro (TSE:4704) Using AI Stock Options To Redefine Its Cybersecurity Edge?

    Simply Wall St·12/08/2025 03:15:19
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    • Trend Micro recently held a board meeting on December 4, 2025 to determine the details of new stock acquisition rights to be issued as stock options, shortly after releasing its 2026 Security Predictions Report and unveiling the forthcoming Trend Vision One AI Security Package for AI-driven environments.
    • Together, these moves highlight how Trend Micro is trying to position itself at the center of emerging AI-driven cyber risk, while using equity-based incentives to align employees with its long-term push into proactive, analytics-heavy security solutions.
    • Next, we’ll explore how Trend Micro’s new AI Security Package and focus on autonomous cyber threats could influence its existing investment narrative.

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    Trend Micro Investment Narrative Recap

    To own Trend Micro, you need to believe it can turn its AI-heavy security platform into durable, subscription-like growth while managing execution risks in its consumer and license businesses. The latest AI Security Package launch and AI threat predictions reinforce the core catalyst around AI-driven enterprise protection, while the new stock options themselves do not materially change the near term outlook or the key risk that heavy AI and consumer investments may pressure profitability if monetization lags.

    The most relevant recent announcement is the upcoming Trend Vision One AI Security Package for AI-driven environments, which sits right at the heart of Trend Micro’s effort to move customers toward proactive, analytics-led security. If enterprises adopt these AI-centric capabilities at scale, it could support the shift toward higher quality recurring revenue even as perpetual license renewals slow and the company leans further into more capital intensive innovation.

    Yet, against this AI opportunity, investors should be aware that rising AI and consumer transformation spend could still...

    Read the full narrative on Trend Micro (it's free!)

    Trend Micro's narrative projects ¥312.2 billion revenue and ¥50.0 billion earnings by 2028. This requires 4.7% yearly revenue growth and an earnings increase of about ¥19.2 billion from ¥30.8 billion today.

    Uncover how Trend Micro's forecasts yield a ¥9150 fair value, a 28% upside to its current price.

    Exploring Other Perspectives

    TSE:4704 Earnings & Revenue Growth as at Dec 2025
    TSE:4704 Earnings & Revenue Growth as at Dec 2025

    Three Simply Wall St Community estimates put Trend Micro’s fair value between ¥7,486.98 and ¥9,150, underscoring how far individual views can stretch. Against that range, the possibility that heavy AI and consumer investments strain margins without clear payback is a key issue you should weigh when comparing these alternative perspectives.

    Explore 3 other fair value estimates on Trend Micro - why the stock might be worth just ¥7487!

    Build Your Own Trend Micro Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.