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Don't Overlook Salesforce.com (CRM) International Revenue Trends While Assessing the Stock

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Have you looked into how Salesforce.com (CRM - Free Report) performed internationally during the quarter ending April 2025? Considering the widespread global presence of this customer-management software developer, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

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.

While analyzing CRM's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.

The company's total revenue for the quarter amounted to $9.83 billion, showing rise of 7.6%. We will now explore the breakdown of CRM's overseas revenue to assess the impact of its international operations.

Exploring CRM's International Revenue Patterns

Of the total revenue, $1.02 billion came from Asia Pacific during the last fiscal quarter, accounting for 10.41%. This represented a surprise of +4.15% as analysts had expected the region to contribute $982.26 million to the total revenue. In comparison, the region contributed $999 million, or 10.00%, and $926 million, or 10.14%, to total revenue in the previous and year-ago quarters, respectively.

Europe accounted for 23.78% of the company's total revenue during the quarter, translating to $2.34 billion. Revenues from this region represented a surprise of +10.52%, with Wall Street analysts collectively expecting $2.11 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $2.33 billion (23.36%) and $2.15 billion (23.49%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

Wall Street analysts expect Salesforce.com to report $10.12 billion in total revenue for the current fiscal quarter, indicating an increase of 8.5% from the year-ago quarter. Asia Pacific and Europe are expected to contribute 10% ($1.01 billion) and 21.4% ($2.17 billion) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $41.13 billion, which is an improvement of 8.6% from the previous year. The revenue contributions from different regions are expected as follows: Asia Pacific will contribute 10% ($4.1 billion) and Europe 21.4% ($8.81 billion) to the total revenue.

The Bottom Line

Relying on international markets for revenues, Salesforce.com faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.

In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

Salesforce.com currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Salesforce.com's Recent Stock Market Performance

The stock has declined by 3.5% over the past month compared to the 6.1% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Salesforce.com, has increased 10.3% during this time frame. Over the past three months, the company's shares have experienced a loss of 6.2% relative to the S&P 500's 0.5% decline. Throughout this period, the sector overall has witnessed a 1.4% increase.

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