Have you assessed how the international operations of MKS (MKSI Quick QuoteMKSI - Free Report) performed in the quarter ended June 2025? For this maker of analysis and processing equipment for semiconductor companies, 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.

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 MKSI'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.

For the quarter, the company's total revenue amounted to $973 million, experiencing an increase of 9.7% year over year. Next, we'll explore the breakdown of MKSI's international revenue to understand the importance of its overseas business operations.

A Look into MKSI's International Revenue Streams

Of the total revenue, $248 million came from Other International during the last fiscal quarter, accounting for 25.5%. This represented a surprise of +3.23% as analysts had expected the region to contribute $240.24 million to the total revenue. In comparison, the region contributed $246 million, or 26.3%, and $232 million, or 26.2%, to total revenue in the previous and year-ago quarters, respectively.

Japan generated $59 million in revenues for the company in the last quarter, constituting 6.1% of the total. This represented a surprise of -10.29% compared to the $65.77 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $68 million (7.3%), and in the year-ago quarter, it contributed $55 million (6.2%) to the total revenue.

During the quarter, China contributed $219 million in revenue, making up 22.5% of the total revenue. When compared to the consensus estimate of $207.83 million, this meant a surprise of +5.38%. Looking back, China contributed $219 million, or 23.4%, in the previous quarter, and $199 million, or 22.4%, in the same quarter of the previous year.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that MKS will post revenues of $963.62 million, which reflects an increase of 7.6% the same quarter in the previous year. The revenue contributions are expected to be 24.9% from Other International ($240.32 million), 7.1% from Japan ($68.01 million) and 21.6% from China ($208.35 million).

Analysts expect the company to report a total annual revenue of $3.77 billion for the full year, marking an increase of 5.2% compared to last year. The expected revenue contributions from Other International, Japan and China are projected to be 25.6% ($966.91 million), 7.2% ($269.82 million) and 22.4% ($845.46 million) of the total revenue, in that order.

Wrapping Up

MKS' leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these 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 tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At the moment, MKS has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Look at MKS' Recent Stock Price Performance

The stock has witnessed a decline of 6.2% over the past month versus the Zacks S&P 500 composite's an increase of 2%. In the same interval, the Zacks Computer and Technology sector, to which MKS belongs, has registered an increase of 5.2%. Over the past three months, the company's shares saw an increase of 11%, while the S&P 500 increased by 13.1%. In comparison, the sector experienced an increase of 23.6% during this timeframe.