Have you assessed how the international operations of Meta Platforms (META) performed in the quarter ended September 2025? For this social media company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.
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.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of META'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 $51.24 billion, experiencing an increase of 26.3% year over year. Next, we'll explore the breakdown of META's international revenue to understand the importance of its overseas business operations.
Unveiling Trends in META's International Revenues
Europe generated $11.57 billion in revenues for the company in the last quarter, constituting 22.6% of the total. This represented a surprise of +0.48% compared to the $11.51 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $11.13 billion (23.4%), and in the year-ago quarter, it contributed $9.21 billion (22.7%) to the total revenue.
Asia-Pacific accounted for 27.9% of the company's total revenue during the quarter, translating to $14.3 billion. Revenues from this region represented a surprise of +6.79%, with Wall Street analysts collectively expecting $13.39 billion. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $12.86 billion (27.1%) and $11.24 billion (27.7%) to the total revenue, respectively.
During the quarter, Rest of the world contributed $5.66 billion in revenue, making up 11.1% of the total revenue. When compared to the consensus estimate of $5.52 billion, this meant a surprise of +2.61%. Looking back, Rest of the world contributed $5.08 billion, or 10.7%, in the previous quarter, and $4.52 billion, or 11.1%, in the same quarter of the previous year.
International Market Revenue Projections
Wall Street analysts expect Meta Platforms to report $58.43 billion in total revenue for the current fiscal quarter, indicating an increase of 20.8% from the year-ago quarter. Europe, Asia-Pacific and Rest of the world are expected to contribute 23.1% (translating to $13.5 billion), 25.2% ($14.75 billion), and 10.5% ($6.15 billion) to the total revenue, respectively.
For the full year, a total revenue of $198.22 billion is expected for the company, reflecting an increase of 20.5% from the year before. The revenues from Europe, Asia-Pacific and Rest of the world are expected to make up 23.1%, 26.4%, and 10.8% of this total, corresponding to $45.76 billion, $52.24 billion, and $21.33 billion, respectively.
In Conclusion
Relying on global markets for revenues presents both prospects and challenges for Meta Platforms. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
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.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
At present, Meta Platforms holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock Price
The stock has witnessed a decline of 10.9% over the past month versus the Zacks S&P 500 composite's an increase of 2.1%. In the same interval, the Zacks Computer and Technology sector, to which Meta Platforms belongs, has registered an increase of 5.5%. Over the past three months, the company's shares saw a decrease of 16.7%, while the S&P 500 increased by 10.3%. In comparison, the sector experienced an increase of 18.8% during this timeframe.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
