Credit rating powerhouse Moody’s delivered optimistic earnings projections for 2026 on Wednesday, anticipating robust demand for bond evaluations as companies increase debt offerings.
The company’s stock climbed approximately 2% during pre-market hours following the announcement.
Bond market activity has intensified recently, particularly as major technology companies boost borrowing to finance artificial intelligence infrastructure investments, creating stronger demand for credit assessment services and benefiting rating agencies like Moody’s.
The company’s MIS division, responsible for credit evaluation services, saw fourth-quarter revenues jump 17% to reach $946 million.
This positive outlook emerges as the rating firm’s stock had previously suffered during a broader selloff affecting software companies and Wall Street firms considered susceptible to artificial intelligence disruption.
Competitor S&P experienced significant stock declines earlier this month after releasing disappointing annual profit forecasts. Moody’s shares have dropped more than 17% in 2026 so far.
Several analysts suggest these automation fears may be exaggerated, noting that companies like Moody’s might actually gain efficiency advantages from new technology.
“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,” CEO Rob Fauber said.
The rating agency anticipates full-year adjusted earnings per share ranging from $16.40 to $17.00, exceeding analyst predictions of $16.38 average, based on LSEG data compilation.
Fourth-quarter results also surpassed expectations, with adjusted earnings reaching $3.64 per share versus analyst forecasts of $3.42 per share.
