Q4 earnings report drives the bounce. Moody’s Corporation shares are up 5.44% to $447.58 on Wednesday after the credit ratings and analytics giant reported fourth quarter and full year 2025 results. The company filed an 8-K this morning and released its earnings announcement, providing its first financial update since shares plummeted 20.1% from $530.24 on January 22 to $412.23 on February 11 amid broader market volatility.
Recovery from oversold levels. Today’s move narrows the stock’s one-month decline but leaves MCO still trading 9.7% below its 50-day average of $498.61 and 8.4% below its 200-day average of $492.76. The sharp selloff earlier this month created a technical setup primed for a snapback rally, particularly if earnings provided any positive data points. Volume of 1.21 million shares tracked slightly below typical levels, suggesting this is an initial reaction rather than heavy institutional repositioning.
Valuation remains stretched despite the drop. MCO trades at 35.98x trailing earnings and 24.31x forward estimates, a premium multiple that reflects the company’s 29.9% profit margin and market-leading position in credit ratings. Revenue grew 10.7% with operating margins of 46.9%, metrics that justify some premium but also leave little room for disappointment. Analysts maintain a consensus price target of $570.70, implying 27.5% upside from current levels and suggesting the recent pullback created value.
Track record of earnings beats supports investor confidence. Moody’s has topped EPS estimates in seven of its last eight quarterly reports, including a 6.41% surprise in Q3 2025 when it delivered $3.92 versus the $3.68 consensus. That consistency in execution likely gave buyers confidence to step in after the stock’s recent decline, even before full details of Q4 results circulated. The forward EPS estimate of $18.41 would represent 48.0% growth from trailing twelve-month earnings of $12.44.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.