What Happened?
Shares of credit rating agency Moody's (NYSE: MCO) jumped 5.7% in the afternoon session after the company reported fourth-quarter financial results that beat Wall Street expectations and provided a strong forecast for the full year 2026.
The financial services firm posted adjusted earnings of $3.64 per share on revenue of $1.89 billion, with both figures coming in ahead of analysts' predictions. Compared to the same period in the previous year, revenue grew by 13% and adjusted earnings jumped by nearly 39%. Looking ahead, Moody's issued an upbeat outlook, guiding for full-year adjusted earnings between $16.40 and $17.00 per share. The midpoint of this guidance also surpassed Wall Street's estimates, signaling management's confidence in the upcoming year.
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What Is The Market Telling Us
Moody’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Moody's is down 10.5% since the beginning of the year, and at $446.83 per share, it is trading 17.2% below its 52-week high of $539.61 from January 2026. Investors who bought $1,000 worth of Moody’s shares 5 years ago would now be looking at an investment worth $1,603.
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