Have you evaluated the performance of Xerox Holdings Corporation's (XRX Quick QuoteXRX - Free Report) international operations during the quarter that concluded in June 2025? Considering the extensive worldwide presence of this company, 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.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Upon examining XRX's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The recent quarter saw the company's total revenue reaching $1.58 billion, marking a decline of 0.1% from the prior-year quarter. Next, we'll examine the breakdown of XRX's revenue from abroad to comprehend the significance of its international presence.

A Dive into XRX's International Revenue Trends

Of the total revenue, $438 million came from Europe during the last fiscal quarter, accounting for 27.8%. This represented a surprise of -10.62% as analysts had expected the region to contribute $490.05 million to the total revenue. In comparison, the region contributed $402 million, or 27.6%, and $461 million, or 29.2%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Canada contributed $108 million in revenue, making up 6.9% of the total revenue. When compared to the consensus estimate of $121.59 million, this meant a surprise of -11.18%. Looking back, Canada contributed $103 million, or 7.1%, in the previous quarter, and $126 million, or 8%, in the same quarter of the previous year.

Other International accounted for 6.4% of the company's total revenue during the quarter, translating to $100 million. Revenues from this region represented a surprise of -11.87%, with Wall Street analysts collectively expecting $113.47 million. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $102 million (7%) and $119 million (7.5%) to the total revenue, respectively.

Revenue Projections for Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Xerox will post revenues of $2.05 billion, which reflects an increase of 34.4% the same quarter in the previous year. The revenue contributions are expected to be 28.8% from Europe ($590.68 million), 6% from Canada ($123.15 million) and 5.6% from Other International ($114.26 million).

For the full year, the company is projected to achieve a total revenue of $7.25 billion, which signifies a rise of 16.5% from the last year. The share of this revenue from various regions is expected to be: Europe at 28.8% ($2.09 billion), Canada at 6.4% ($466.56 million), and Other International at 6.1% ($440.27 million).

Wrapping Up

Xerox'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.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

Xerox, bearing a Zacks Rank #5 (Strong Sell), is expected to underperform 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 >>>> .

Reviewing Xerox Holdings Corporation's Recent Stock Price Trends

Over the preceding four weeks, the stock's value has diminished by 17.9%, against an upturn of 1.9% in the Zacks S&P 500 composite. In parallel, the Zacks Industrial Products sector, which counts Xerox among its entities, has appreciated by 0.2%. Over the past three months, the company's shares have seen a decline of 22.4% versus the S&P 500's 13% increase. The sector overall has witnessed an increase of 13.8% over the same period.