Under the environment of U.S. tariff policies, the global discussion on &#34;de-dollarization&#34; is intensifying. This article depicts the overseas business profile of U.S. listed companies from the perspective of their overseas operations:
① Large enterprises have an overseas business proportion of 30%, higher than that of small enterprises (20%).
② The sectors with the largest overseas business exposure are Technology (51%), Materials (38%), Healthcare (35%), and Telecommunications (34%), with Technology and Telecommunications accounting for nearly half of the market capitalization of the S&amp;P 500; among these sectors, the growth rate of overseas business in Telecommunications has generally been higher than the overall revenue growth since 2017, making it the sector most reliant on overseas business.
③ The overseas revenue proportion of weighted stocks in the S&amp;P 500 is generally higher than the industry average, and the profit margins of overseas business are also higher than those of domestic operations (for example, in 2024, Apple's overseas revenue proportion is 57%, industry average 51%, overseas profit margin 42%, overall profit margin 32%; Amazon's overseas revenue proportion is 39%, industry average 27%, overseas profit margin 17%, overall profit margin 11%); this indicates that U.S. giant enterprises have a high dependence on overseas operations.
④ Among the S&amp;P 500 companies that disclose their business in China, the proportion of Chinese revenue in Technology and Telecommunications (25%) is higher than the overall average (17%), but in the past two years, revenue growth from China has been slower than the overall growth, especially for NVIDIA, where the proportion of revenue from China has decreased, and the growth rate of revenue from China has significantly lagged behind the overall growth, which may be related to recent U.S. restrictions on the technology industry in China.
It can be seen that if tariffs lead to further de-dollarization, it may have a significant impact on the overseas business of U.S. stocks, thereby affecting the performance of U.S. stocks, especially weighted stocks.
The main content of the report is as follows:
What is the proportion of overseas revenue for U.S. stocks? 20-30%, with large enterprises having a higher proportion than small enterprises
The proportion of non-U.S. revenue in the S&amp;P 500 index is about 30%; while the proportion of non-U.S. revenue for small U.S. enterprises (represented by the Russell 2000) is relatively smaller, about 20%.
Note: 1. Considering that the proportion of regional classification by continent in U.S. stock financial reports is higher, the overseas revenue proportion is calculated by excluding revenue from the Americas; in the following text, &#34;overseas business&#34; also refers to the business situation excluding the Americas; 2. Based on 2024 data, the market capitalization of companies disclosing non-U.S. revenue accounts for about 83% of the total market capitalization of the S&amp;P 500, which is highly representative; while for the Russell 2000, this proportion is 43%, which is relatively less representative.
Which industries have the largest overseas revenue exposure? Technology, Materials, Healthcare, Telecommunications
Further breaking down the non-U.S. revenue proportions of various industries in the S&amp;P 500, it can be seen that the non-U.S. revenue proportion in the Technology sector is above 50%, indicating the largest overseas revenue exposure; the non-U.S. revenue proportions in Materials, Healthcare, and Telecommunications are above 30%. Technology and Telecommunications are the two largest sectors by market capitalization in the S&amp;P 500 index, accounting for nearly half of the total market capitalization, thus key industries among U.S. listed companies also have a high reliance on overseas business
Note: Companies in the technology, materials, healthcare, and telecommunications sectors that disclose overseas business account for more than 70% of the market value in their respective industries, indicating a high level of representativeness.
Do weighted stocks have a high proportion of overseas business? More than half are above the industry average.
From the perspective of individual stocks, the bank has separately counted the proportion of non-U.S. business for the top five companies by market capitalization in major sectors of the S&amp;P 500. More than half of the leading companies have a higher proportion of overseas business than the industry average.
In the technology sector, Apple (57%), NVIDIA (56%), and Broadcom (75%) have a non-U.S. business proportion higher than the industry average (51%);
In the telecommunications sector, Alphabet (46%), Meta (56%), and Netflix (43%) have a non-U.S. business proportion exceeding the industry average (34%), indicating that telecommunications giants generally rely more on overseas business.
In the healthcare sector, Johnson &amp; Johnson (43%) and Abbott Laboratories (61%) have a non-U.S. business proportion higher than the industry average, and the proportion remains stable.
Which market is more important, Europe or Asia? Almost equally important.
Overall, the proportion of revenue from Asia and Europe in non-U.S. income is 45% and 40%, respectively, making them the primary sources of overseas revenue.
By sector, in technology and energy, the proportion of revenue from Asia is 59% and 60%, respectively, far exceeding that from Europe; while in consumer staples, consumer discretionary, and financial sectors, the proportion of revenue from Europe is 56%, 64%, and 65%, respectively, far exceeding that from Asia.
Note: This further statistics include companies that disclose both Asian and European revenue data, accounting for about 17% of the total market capitalization of the S&amp;P 500; the total market capitalization proportions for technology, industrials, and materials sectors are approximately 33%, 22%, and 17%, respectively, indicating that the data representativeness is not high and can only objectively present the situation of companies that disclosed relevant data.
Who has faster growth, domestic or overseas? Telecommunications sector has faster overseas revenue growth.
From the overall situation of S&amp;P 500 stocks that disclosed non-U.S. revenue, the growth of non-U.S. revenue in 2023-2024 is generally higher than the total revenue growth, indicating that overall revenue growth relies more on overseas.
From an industry perspective, the telecommunications sector has the highest reliance on overseas revenue, with non-U.S. revenue growth consistently exceeding total revenue growth (except for 2020); the materials sector's non-U.S. revenue growth in 2023-2024 is higher than total revenue.
Note: The proportion of companies that fully disclosed non-U.S. revenue from 2016 to 2024 accounts for about 61%/79% of the total number/market capitalization of S&amp;P 500 constituents; by sector, the number and market capitalization proportions of companies in technology, materials, healthcare, and telecommunications that disclose overseas business are all above 50%, providing a high level of representativeness for the analysis of overseas business conditions.
Is overseas business more profitable? Some industries have higher profit margins than domestic.
The profit margins of overseas business in consumer staples, consumer discretionary, materials, and technology sectors are higher than those of domestic business. By separately calculating the non-U.S. operating revenue and operating profit for each industry and calculating the operating profit margin (operating profit/operating revenue), it can be seen that the average operating profit margins for overseas business in consumer staples, consumer discretionary, materials, and technology sectors are 37%, 23%, 25%, and 33%, respectively, all higher than the overall average operating profit margins (16%, 18%, 17%, 20%), indicating that the profit margins of overseas business are higher than those of domestic business
From the perspective of individual stocks, typical industry heavyweight stocks such as Apple (technology), Amazon (consumer discretionary), McDonald's (consumer discretionary), Coca-Cola (consumer staples), Walmart (consumer staples), and Linde Group (materials) generally have higher overseas business profit margins than those in the U.S. domestic market; that is, heavyweight companies not only have a higher proportion of overseas business but also enjoy higher profit margins from those businesses.
Note: The market capitalization of companies in the consumer staples, consumer discretionary, materials, and technology sectors that disclosed overseas operating profit margin data (2024) accounts for 65%, 59%, 45%, and 22% of all companies disclosing overseas business data, respectively, indicating a certain level of industry representativeness (the representativeness of the technology sector is relatively weak).
Is the proportion of U.S. stocks' Chinese business high? Technology and communications sectors are relatively high
Further screening of S&amp;P 500 listed companies that disclosed data on their Chinese business shows that the proportion of revenue from China in the technology and communications sectors is higher than the overall average, indicating that these sectors are not only more reliant on overseas markets but also have a higher dependency on China. However, in terms of revenue growth, the revenue growth from China in the technology and communications sectors has been slower than the overall growth in the past two years, possibly related to recent U.S. restrictions on the technology sector in China.
From the individual stock level, looking at the Chinese business situation of the Mag7 constituents, Tesla, Apple, and NVIDIA, which disclosed data on their Chinese business, showed that from 2022 to 2023, the revenue growth from China for these three companies was mostly faster than the overall growth; however, in 2024, the revenue growth from China was slower than the overall revenue growth, with NVIDIA showing this characteristic most prominently; at the same time, the proportion of revenue from China also declined. From the perspective of the Chinese business situation of the Mag7 constituents, 2024 shows a slight decline in the contribution of Chinese business.
Note: Since the companies disclosing data on their Chinese business account for only 28% of the market capitalization of all companies disclosing overseas business data, the representativeness of Chinese business in the S&amp;P 500 is not high and can only objectively present the situation of companies that disclosed data on their Chinese business.
Risk Warning: U.S. trade and technology restrictions on China exceed expectations, and there may be errors in data statistics.
This article is compiled from the WeChat public account &#34;Yi Yu Zhong De,&#34; authored by Zhang Yu and Yin Wenqing; edited by Song Zhiying of Zhitong Finance

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Against the backdrop of globalization retreat and U.S. tariff policies, U.S. companies' overseas businesses face hidden concerns. Large enterprises have an overseas business proportion of 30%, with the highest exposure in the technology, materials, healthcare, and communications sectors. The overseas revenue and profit margins of S&P 500 weighted stocks are generally higher than the industry average, indicating a reliance on overseas markets. If the trend of de-dollarization intensifies, it will have a significant impact on U.S. stocks, especially the performance of weighted stocks

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