Moody’s forecasts strong 2026 profit on ratings demand

Moody’s expects stronger-than-anticipated profits in 2026, driven by sustained demand for credit ratings as global debt issuance continues to rise.

The credit rating agency said it expects full-year adjusted earnings per share between $16.40 and $17.00, slightly above analysts’ average estimate of $16.38, according to market data. The positive forecast helped push the company’s shares about 2% higher in premarket trading, News.Az reports, citing Reuters.

Demand for credit ratings has been supported by increased bond issuance activity, particularly as major technology companies raise funds to invest heavily in artificial intelligence infrastructure. The surge in borrowing has created additional business for ratings firms that assess credit risk for investors.

Moody’s Investors Service (MIS), the company’s core credit ratings unit, reported strong performance, posting a 17% increase in fourth-quarter revenue to $946 million. The company also beat fourth-quarter profit expectations, reporting adjusted earnings of $3.64 per share compared with analysts’ estimates of $3.42.

The upbeat outlook comes after Moody’s stock faced pressure earlier this year amid broader market concerns that automation and artificial intelligence could disrupt parts of the financial services industry. The company’s shares have declined more than 17% in 2026 so far.

However, some analysts argue that AI may ultimately improve efficiency across the sector rather than replace core rating functions. Moody’s leadership has echoed that view, highlighting how artificial intelligence tools are being integrated into decision-making systems used by customers and partners.

CEO Rob Fauber said the company is expanding its role in high-stakes financial decisions by embedding advanced analytics and contextual intelligence across its platforms and third-party systems.

The outlook contrasts with some peers that recently issued weaker forecasts, suggesting Moody’s may be better positioned to benefit from current debt market trends and technological transformation.

News.Az 

By Aysel Mammadzada