Moody's Corporation (NYSE:MCO) delivered a stronger-than-anticipated finish to its 2025 fiscal year, surpassing analyst expectations for both revenue and profit in the fourth quarter. The credit rating and financial analytics firm reported results after the market close on Tuesday, February 18, 2026, and provided its initial outlook for the coming year.
Earnings Performance vs. Estimates
The company’s fourth-quarter performance demonstrated robust growth, notably exceeding consensus forecasts on the top and bottom lines.
- Revenue: Reported revenue reached $1.89 billion, a 13% increase compared to the same quarter last year. This figure came in ahead of the analyst consensus estimate of $1.88 billion.
- Earnings Per Share (Non-GAAP): The company posted adjusted earnings per share of $3.64. This result was a significant 6.1% beat over the average analyst estimate of $3.46 per share.
The double-digit revenue growth and earnings beat indicate that Moody's core businesses in credit ratings (Moody's Investors Service) and data analytics (Moody's Analytics) performed well during the period, potentially benefiting from sustained capital markets activity and demand for risk assessment tools.
Market Reaction and Price Action
The immediate market reaction to the earnings report has been positive. In pre-market trading following the announcement, Moody's stock is indicating an opening gain of approximately 2.7%. This upward move suggests investors are rewarding the company for its earnings outperformance.
This pre-market strength stands in contrast to the stock's recent trajectory. Over the past month, shares had declined more than 21%, reflecting broader market concerns or potential pre-earnings caution. The positive earnings surprise appears to be countering that recent negative sentiment, at least in the short term.
Outlook for 2026
In its press release, Moody's provided its financial outlook for the full 2026 fiscal year. This forward guidance will be a key focus for analysts and investors during the scheduled earnings conference call. The company's own projections can now be measured against existing Wall Street expectations.
- Analyst Revenue Estimate for FY 2026: $8.38 billion
- Analyst EPS Estimate (Non-GAAP) for FY 2026: $16.56
Management's commentary on the call regarding growth drivers, margin expectations, and capital allocation will be critical in determining whether the post-earnings stock momentum can be sustained.
Summary of the Announcement
The primary announcement was the release of Moody's fourth quarter and full-year 2025 financial results. The company has made detailed materials, including the earnings release, available on its investor relations website and has filed them with the SEC. To discuss these results, Moody's management will host a one-hour conference call and webcast at 9:00 a.m. Eastern Time today, February 18, 2026. A telephone replay will be available for one week following the call.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, readers can review the comprehensive data available on the Moody's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
