Revenue from non-US sources dipped among a group of S&P 500 companies in the second quarter of 2024, according to an S&P Global Market Intelligence analysis.
The group consists of 103 companies that disclosed data on international revenue exposure for the three months ended June 30. These companies reported $596.68 billion in revenues outside the US, a decrease from the $611.02 billion posted for the linked quarter.
Exxon Mobil Corp. tallied the highest total revenue among the companies in the analysis. The company's total sales and other operating revenue in the second quarter amounted to almost $90 billion, and $53.09 billion came from non-US sources, according to a Form 10-Q.
Alphabet Inc. reported total revenue of nearly $85 billion, the second-highest in the group. Of its total revenue, 51% was generated outside the US, according to the company's most recent Form 10-Q.
Overall, about 28.9% of the total revenue generated by the S&P 500 companies included in the analysis came from non-US sources during the second quarter, an increase of 74 basis points from the prior quarter. In the three months ended March 31, the share of international revenue plunged 202 bps from the fourth quarter of 2023.
During the second quarter, the US dollar strengthened against other currencies in April before losing some ground in May and rebounding in June. A rise in the dollar's value compared to other currencies can erode earnings for US companies that do business internationally, as they face higher exchange rates to convert overseas sales into dollars.
In an earnings call held July 31, Meta Platforms Inc. CFO Susan Li said the company's guidance for the third quarter assumed that foreign currency would represent a 2% headwind to year-over-year total revenue growth based on current exchange rates.
After June's rebound, the dollar weakened throughout the third quarter. However, US Federal Reserve benchmark interest rate cut expectations have caused the dollar to rally since late September and into the second half of October.