Moody's profit rises on strong analytics growth, lifts annual forecast

[NEW YORK] Ratings agency Moody’s reported a rise in first-quarter profit on Wednesday (Apr 22), driven by strong demand for its research and analytics products, and raised its 2026 earnings forecast.

Strong bond issuance helped support Moody’s ratings business, but investors remain cautious as borrowing activity faces pressure from market volatility, private credit concerns and geopolitical uncertainty.

Revenue from the analytics segment, which chiefly depends on a subscription model, rose 8 per cent to US$926 million in the first quarter.

Moody’s results are closely scrutinised by traders looking to assess bond market trends as they can be a reliable gauge of debt appetite given the company’s wide reach.

The company’s investors service business, which issues credit ratings, generated a record US$1.15 billion in revenue, up 8 per cent from year ago period.

“As AI adoption accelerates, it is driving demand for Moody’s decision-grade connected intelligence in highstakes environments,” said chief executive Rob Fauber.

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Profit attributable to Moody’s totalled US661 million, or US$3.73 per share, in the three months ended March 31, compared with US$625 million, or US$3.46 per share, a year earlier.

The company raised its annual adjusted earnings per share forecast to a range of US$16 to US$16.60, up from its previous outlook of US$15 to US$15.60 per share.

As of last close, Moody’s shares have lost 10 per cent so far this year. REUTERS