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Why Salesforce.com (CRM) International Revenue Trends Deserve Your Attention

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Have you evaluated the performance of Salesforce.com's (CRM - Free Report) international operations for the quarter ending July 2025? Given the extensive global presence of this customer-management software developer, 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.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Our review of CRM'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.

The company's total revenue for the quarter stood at $10.24 billion, increasing 9.8% year over year. Now, let's delve into CRM's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into CRM's International Revenue Trends

Asia Pacific generated $1.07 billion in revenues for the company in the last quarter, constituting 10.5% of the total. This represented a surprise of +5.01% compared to the $1.02 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $1.02 billion (10.4%), and in the year-ago quarter, it contributed $940 million (10.1%) to the total revenue.

Europe accounted for 23.7% of the company's total revenue during the quarter, translating to $2.43 billion. Revenues from this region represented a surprise of +13.18%, with Wall Street analysts collectively expecting $2.15 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $2.34 billion (23.8%) and $2.18 billion (23.4%) to the total revenue, respectively.

Projected Revenues in Foreign Markets

It is projected by analysts on Wall Street that Salesforce.com will post revenues of $10.28 billion for the ongoing fiscal quarter, an increase of 8.8% from the year-ago quarter. The expected contributions from Asia Pacific and Europe to this revenue are 10.1%, and 21.3%, translating into $1.04 billion, and $2.19 billion, respectively.

For the full year, the company is projected to achieve a total revenue of $41.21 billion, which signifies a rise of 8.8% from the last year. The share of this revenue from various regions is expected to be: Asia Pacific at 10.2% ($4.18 billion), and Europe at 21.8% ($8.99 billion).

Key Takeaways

Salesforce.com's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

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.

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, bearing a Zacks Rank #2 (Buy), is expected to outperform 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 >>>> .

Reviewing Salesforce.com's Recent Stock Price Trends

The stock has witnessed an increase of 4.3% over the past month versus the Zacks S&P 500 composite's an increase of 3.1%. In the same interval, the Zacks Computer and Technology sector, to which Salesforce.com belongs, has registered an increase of 4.5%. Over the past three months, the company's shares saw a decrease of 3%, while the S&P 500 increased by 9.5%. In comparison, the sector experienced an increase of 15.4% during this timeframe.


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