Have you assessed how the international operations of IBM (IBM) performed in the quarter ended September 2024? For this technology and consulting company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

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.

While delving into IBM's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

The company's total revenue for the quarter stood at $14.97 billion, increasing 1.5% year over year. Now, let's delve into IBM's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

A Dive into IBM's International Revenue Trends

Asia Pacific generated $2.9 billion in revenues for the company in the last quarter, constituting 19.4% of the total. This represented a surprise of -1.92% compared to the $2.96 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $3.1 billion (19.7%), and in the year-ago quarter, it contributed $2.8 billion (19%) to the total revenue.

Europe, Middle East and Africa accounted for 30.7% of the company's total revenue during the quarter, translating to $4.6 billion. Revenues from this region represented a surprise of +2.01%, with Wall Street analysts collectively expecting $4.51 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe, Middle East and Africa contributed $4.7 billion (29.8%) and $4.2 billion (28.5%) to the total revenue, respectively.

Prospective Revenues in International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that IBM will report a total revenue of $17.66 billion, which reflects an increase of 1.6% from the same quarter in the previous year. The revenue contributions are expected to be 19.8% from Asia Pacific ($3.49 billion) and 30.3% from Europe, Middle East and Africa ($5.35 billion).