Moody's Corporation announced fourth quarter and full year 2025 results that beat earnings estimates, along with an upbeat outlook for 2026. The company reported higher profit and revenue in the fourth quarter, with efforts to scale new technologies across its business contributing to results. Moody's forecasted strong 2026 profit based on anticipated demand for credit ratings. Bank of America Securities reinstated a Buy rating on Moody's stock with a price target of $550, citing expectations that the company will benefit from increased debt issuance activity, which accounts for over 50% of its revenue. The firm also noted recent revenue growth and upward revisions in analyst earnings expectations. Additionally, Chris Hohn's TCI Fund added to its Moody's stake in the fourth quarter.
Read full analysisMoody's Corporation announced fourth quarter and full year 2025 results that beat earnings estimates, along with an upbeat outlook for 2026. The company reported higher profit and revenue in the fourth quarter, with efforts to scale new technologies across its business contributing to results. Moody's forecasted strong 2026 profit based on anticipated demand for credit ratings. Bank of America Securities reinstated a Buy rating on Moody's stock with a price target of $550, citing expectations that the company will benefit from increased debt issuance activity, which accounts for over 50% of its revenue. The firm also noted recent revenue growth and upward revisions in analyst earnings expectations. Additionally, Chris Hohn's TCI Fund added to its Moody's stake in the fourth quarter.
Moody's is one of the world's leading credit rating agencies and a major provider of financial data, analytics, and risk assessment tools. More than half its revenue comes from debt issuance activity, making it highly sensitive to capital markets conditions. Today's earnings beat and strong 2026 guidance directly address investor concerns about the company's growth trajectory after weeks of selling pressure tied to AI disruption fears and peer weakness.