Lazard's Q2 2025 Commentary: International Equity Markets Rise Amid Volatility

International equity markets rose significantly in Q2, adding to the year-to-date lead over the US. International corporate profit growth remained resilient despite a volatile geopolitical environment. International currencies remained strong as well.

International equity markets experienced significant growth in the second quarter (Q2) of 2025, continuing to outpace the United States year-to-date. This performance was bolstered by resilient corporate profit growth, despite a volatile geopolitical environment. Additionally, international currencies remained strong, contributing to the overall positive market sentiment.

The second quarter earnings season for the S&P 500 index companies has shown mostly positive results, with over 92% of companies reporting. Analysts expected S&P 500 companies to report an 11% jump in earnings per share during the second quarter, despite lower initial expectations. Companies such as MongoDB (MDB), Okta (OKTA), and Kohl's (KSS) reported strong earnings, with MongoDB's stock soaring on the back of AI and Tailwind technologies [1].

In contrast, international markets demonstrated remarkable resilience. Companies like Tribe Property Technologies Inc. (TSXV: TRBE) achieved significant revenue growth, posting a 32% increase in Q2-2025 compared to the same period in 2024. The company's Adjusted EBITDA loss improved by 97%, driven by operational improvements and market expansion. This growth highlights the scalability of Tribe's tech-backed services model in new markets [2].

The strong performance of international equities can be attributed to several factors. Resilient corporate profit growth, despite geopolitical uncertainties, has been a key driver. Additionally, the strength of international currencies has supported market performance. The Canadian dollar, for instance, has remained strong, benefiting companies like Tribe that operate in the Canadian market.

Looking ahead, international markets are expected to continue their positive trajectory. Companies are focusing on growth strategies, including strategic acquisitions and digital transformation, to drive revenue and profitability. Tribe, for example, aims to increase growth through new property management agreements, software licensing, and digital services revenue, while also pursuing strategic acquisitions [2].

In conclusion, the second quarter of 2025 has been a period of strong performance for international equity markets. Resilient corporate profits, supported by operational efficiencies and market expansion, have driven this growth. The strength of international currencies has also contributed to the positive market sentiment. Investors and financial professionals should continue to monitor these trends as international markets remain a key area of focus for global investment strategies.

References:
[1] https://finance.yahoo.com/news/live/earnings-live-mongodb-stock-soars-on-ai-tailwind-kohls-surges-okta-gains-122659750.html
[2] https://www.placera.se/pressmeddelanden/tribe-property-technologies-inc-tribe-property-technologies-achieves-32-revenue-growth-in-q2-2025-20250828