Have you evaluated the performance of Salesforce.com's (CRM) international operations during the quarter that concluded in October 2025? Considering the extensive worldwide presence of this customer-management software developer, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
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.
In our recent assessment of CRM's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $10.26 billion, marking an increase of 8.6% from the year-ago quarter. We will next turn our attention to dissecting CRM's international revenue to get a clearer picture of how significant its operations are outside its main base.
Decoding CRM's International Revenue Trends
During the quarter, Asia Pacific contributed $1.09 billion in revenue, making up 10.6% of the total revenue. When compared to the consensus estimate of $1.02 billion, this meant a surprise of +6.16%. Looking back, Asia Pacific contributed $1.07 billion, or 10.5%, in the previous quarter, and $996 million, or 10.6%, in the same quarter of the previous year.
Of the total revenue, $2.47 billion came from Europe during the last fiscal quarter, accounting for 24.1%. This represented a surprise of +20.21% as analysts had expected the region to contribute $2.05 billion to the total revenue. In comparison, the region contributed $2.43 billion, or 23.7%, and $2.23 billion, or 23.6%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue Projections
Wall Street analysts expect Salesforce.com to report $11.19 billion in total revenue for the current fiscal quarter, indicating an increase of 12% from the year-ago quarter. Asia Pacific and Europe are expected to contribute 9.7% (translating to $1.08 billion), and 19.4% ($2.18 billion) to the total revenue, respectively.
For the full year, a total revenue of $41.41 billion is expected for the company, reflecting an increase of 9.3% from the year before. The revenues from Asia Pacific and Europe are expected to make up 10.1%, and 21.7% of this total, corresponding to $4.2 billion, and $9 billion, respectively.
The Bottom Line
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.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
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.
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 #3 (Hold), is expected to mirror 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 Look at Salesforce.com's Recent Stock Price Performance
Over the preceding four weeks, the stock's value has appreciated by 8.6%, against an upturn of 1.2% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Salesforce.com among its entities, has appreciated by 1.7%. Over the past three months, the company's shares have seen an increase of 7.3% versus the S&P 500's 6.3% increase. The sector overall has witnessed an increase of 11.7% over the same period.
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
Salesforce Inc. (CRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
