Have you evaluated the performance of Gen Digital's (GEN Quick QuoteGEN - Free Report) international operations for the quarter ending March 2025? Given the extensive global presence of this security software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Our review of GEN's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $1.01 billion, experiencing an increase of 4.5% year over year. Next, we'll explore the breakdown of GEN's international revenue to understand the importance of its overseas business operations.

A Dive into GEN's International Revenue Trends

Of the total revenue, $100 million came from APJ during the last fiscal quarter, accounting for 9.90%. This represented a surprise of -0.89% as analysts had expected the region to contribute $100.9 million to the total revenue. In comparison, the region contributed $99 million, or 10.04%, and $97 million, or 10.03%, to total revenue in the previous and year-ago quarters, respectively.

EMEA accounted for 24.46% of the company's total revenue during the quarter, translating to $247 million. Revenues from this region represented a surprise of +2.46%, with Wall Street analysts collectively expecting $241.08 million. When compared to the preceding quarter and the same quarter in the previous year, EMEA contributed $240 million (24.34%) and $234 million (24.20%) to the total revenue, respectively.

International Revenue Predictions

It is projected by analysts on Wall Street that Gen Digital will post revenues of $1.18 billion for the ongoing fiscal quarter, an increase of 22.3% from the year-ago quarter. The expected contributions from APJ and EMEA to this revenue are 8.6% and 20.5%, translating into $101.6 million and $242.18 million, respectively.

Analysts expect the company to report a total annual revenue of $4.03 billion for the full year, marking an increase of 2.3% compared to last year. The expected revenue contributions from APJ and EMEA are projected to be 10.4% ($419.01 million) and 24.9% ($1 billion) of the total revenue, in that order.

In Conclusion

Gen Digital's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Gen Digital, bearing a Zacks Rank #4 (Sell), is expected to underperform the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Review of Gen Digital's Recent Stock Market Performance

The stock has increased by 18.5% over the past month compared to the 9.8% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Business Services sector, which includes Gen Digital, has increased 8.8% during this time frame. Over the past three months, the company's shares have experienced a gain of 6% relative to the S&P 500's 2.9% decline. Throughout this period, the sector overall has witnessed a 4.5% decrease.