Moody’s on Wednesday outlined a full-year adjusted profit-per-share forecast that surpasses analysts' consensus, wagering that continued appetite for credit ratings will persist as corporate debt issuance accelerates. The company’s shares ticked up roughly 2% in premarket trading on the announcement.
Company executives pointed to a pickup in the bond market, notably led by large technology firms increasing issuance to finance investments in artificial intelligence infrastructure. That surge in borrowing has translated into stronger demand for credit ratings, bolstering revenue at rating firms such as Moody’s.
Moody’s Investors Service (MIS), the division responsible for credit ratings, recorded a 17% rise in fourth-quarter revenue, reaching $946 million. The firm also reported adjusted earnings per share of $3.64 for the fourth quarter, outpacing the $3.42 per share analysts had expected.
For the full year, Moody’s is projecting adjusted profit per share in a range of $16.40 to $17.00, above the $16.38 per share average forecast among analysts compiled by LSEG. The more upbeat guidance arrives even as the company’s stock has been impacted by a broader market selloff - a rout that moved from software companies to Wall Street brokerages seen as vulnerable to automation. Moody’s shares have dropped more than 17% so far in 2026.
Concerns about automation and technological disruption have weighed on valuations across parts of the financial sector, yet some market participants argue those effects could be tempered or offset. "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," said CEO Rob Fauber.
The firm’s stronger-than-expected quarterly performance and its full-year guidance reflect a mix of rising rating demand and execution on the part of its ratings business. Still, stock performance has diverged from the operational results, reflecting investor sensitivity to sectorwide technology-driven disruption and recent profit projections from peers that have dented sentiment.