Have you evaluated the performance of Xerox Holdings Corporation's (XRX Quick QuoteXRX - Free Report) international operations during the quarter that concluded in September 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.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

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 company's total revenue for the quarter amounted to $1.96 billion, marking an increase of 28.3% from the year-ago quarter. We will next turn our attention to dissecting XRX's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in XRX's International Revenues

Europe accounted for 26.1% of the company's total revenue during the quarter, translating to $511 million. Revenues from this region represented a surprise of -19.28%, with Wall Street analysts collectively expecting $633.04 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $438 million (27.8%) and $440 million (28.8%) to the total revenue, respectively.

Of the total revenue, $125 million came from Canada during the last fiscal quarter, accounting for 6.4%. This represented a surprise of -16.63% as analysts had expected the region to contribute $149.93 million to the total revenue. In comparison, the region contributed $108 million, or 6.9%, and $117 million, or 7.7%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other International contributed $49 million in revenue, making up 2.5% of the total revenue. When compared to the consensus estimate of $139.21 million, this meant a surprise of -64.8%. Looking back, Other International contributed $100 million, or 6.4%, in the previous quarter, and $110 million, or 7.2%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

It is projected by analysts on Wall Street that Xerox will post revenues of $2.11 billion for the ongoing fiscal quarter, an increase of 30.8% from the year-ago quarter. The expected contributions from Europe, Canada and Other International to this revenue are 27.6%, 6.4%, and 6.1%, translating into $582.52 million, $135.4 million, and $127.61 million, respectively.

For the full year, the company is expected to generate $7.15 billion in total revenue, up 14.9% from the previous year. Revenues from Europe, Canada and Other International are expected to constitute 31% ($2.22 billion), 7.2% ($516.66 million) and 6.8% ($485.32 million) of the total, respectively.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Xerox. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

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.

Currently, Xerox holds a Zacks Rank #4 (Sell), signifying its potential to underperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Xerox Holdings Corporation's Recent Stock Market Performance

Over the past month, the stock has lost 7.6% versus the Zacks S&P 500 composite's 4.4% increase. The Zacks Industrial Products sector, of which Xerox is a part, has risen 5.8% over the same period. The company's shares have declined 21.5% over the past three months compared to the S&P 500's 7.3% increase. Over the same period, the sector has risen 5.1%