Moody's forecasts strong 2025 profit on rising demand for data, analytics

Ratings agency Moody's Corp forecast 2025 profit above Wall Street estimates on Thursday, anticipating strong demand for its data and analytics offerings amid macroeconomic ambiguity, sending its shares up over 3 per cent in premarket trading. 

Demand for market analytical tools has risen as investors try to capture value amid diminishing chances of interest rate cuts and rising uncertainty over the economic impact of the US administration's trade, immigration and fiscal policies.

 

S&P Global, Moody's peer, also forecast 2025 adjusted profit above analysts' estimates on Tuesday. 

 

Moody's forecast an annual adjusted profit of $14 per share to $14.50 per share, above analysts' estimates of $13.58, according to data compiled by LSEG. 

Its adjusted profit of $2.62 per share in the fourth quarter also exceeded analysts' expectation of $2.59. 

Total revenue increased 13 per cent to $1.67 billion, powered by an 8.4 per cent rise in its analytics unit and a 17.2 per cent jump in its investor service business. Both units have a roughly equal contribution.