Moody's impresses with Q4 profits, 2026 guidance

18th Feb 2026 13:05

(Sharecast News) - Shares in credit ratings agency Moody's were rising in pre-market trade on Wednesday after fourth-quarter results impressed, with double-digit revenue growth and a surge in profits, while guidance for 2026 comfortably beat expectations.

Revenues totalled $1.9bn over the final three months of 2025, up 13% year-on-year, driving full-year turnover up 9% to a record $7.7bn. Analysts were looking for a fourth-quarter revenue outcome closer to $1.86bn.

Revenues in the Moody's Analytics division, which provides financial intelligence, software and analytical tools, increased 9% to $943m in the fourth quarter. Meanwhile, the Moody's Investors Service arm, home to the credit rating operations, achieved 17% growth to $946m.

"Our 2025 results demonstrate the tremendous demand for Moody's solutions and our ability to execute with precision and speed," said chief executive and president Rob Fauber.

"By scaling decision grade, contextual intelligence that is embedded directly into customer workflows-across our platforms, third party systems, and AI enabled interfaces-we are expanding the ways in which Moody's remains central to high stakes decision making."

Adjusted earnings per share came in at $3.64, 39% ahead of last year and some 20 cents above the consensus forecast. Full-year adjusted EPS was up 20% at $14.94.

For 2026, the firm projected an increase in adjusted EPS to $16.40-17.00, which at the mid-point was ahead of the current consensus forecast of $16.47.

Moody's futures were up 4.3% at $423.22 by 1357 GMT, before the opening bell in New York.