Practical examples of forward-looking statements in MD&A

Real-world style examples of forward-looking statements in MD&A

Before definitions and rules, it helps to see how this actually reads on the page. In MD&A, forward-looking statements usually appear in three places: the safe harbor paragraph, the strategy and outlook section, and the liquidity/capital resources discussion. The best examples of forward-looking statements in MD&A all share the same DNA: they talk about the future, use conditional language, and tie back to management’s plans or assumptions.

Here is a realistic, composite example of a forward-looking paragraph you might see near the start of MD&A:

“This MD&A contains forward-looking statements, including statements regarding our expectations for revenue growth, margin expansion, capital expenditures, share repurchases, and our long-term climate and sustainability goals. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, including macroeconomic conditions, supply chain constraints, evolving AI regulations, and cybersecurity threats. Actual results may differ materially from those indicated in these statements. For a discussion of factors that could cause actual results to differ, see ‘Risk Factors’ in this Form 10-K.”

That’s the template. Now let’s break down more specific examples of forward-looking statements in MD&A across common topics.

Revenue and earnings guidance: classic examples of forward-looking statements in MD&A

When investors think “forward-looking,” they think guidance. MD&A is where companies explain the story behind the numbers in the earnings release.

A typical example of a forward-looking revenue statement in MD&A might read like this:

“For fiscal 2025, we expect net sales to increase in the low- to mid-single digits compared to fiscal 2024, driven primarily by continued growth in our cloud services business and expansion into new international markets. We anticipate that foreign currency translation will have a modest headwind on reported revenue based on current exchange rates.”

Notice the cues:

• “We expect”, “we anticipate” – clearly future-focused.
• Specific time frame – fiscal 2025.
• Underlying drivers – cloud services, international expansion, FX.

Earnings guidance often goes a step further into margins and EPS. An example of a forward-looking margin statement in MD&A:

“We expect operating margin for fiscal 2025 to expand by approximately 50 to 75 basis points, reflecting improved product mix, continued pricing discipline, and benefits from our ongoing cost optimization initiatives.”

In 2024–2025, many companies are layering in macroeconomic uncertainty and inflation explicitly. A more current example of forward-looking statements in MD&A might say:

“While we expect adjusted EPS to grow year over year in 2025, the rate of growth will depend on the pace of recovery in consumer demand, the persistence of inflationary pressures in labor and materials, and the timing of interest rate reductions by central banks.”

This kind of language acknowledges uncertainty, which regulators and investors increasingly expect. The SEC has repeatedly reminded companies that MD&A should not be boilerplate; it should explain how known trends and uncertainties could affect future results (see SEC guidance on MD&A: https://www.sec.gov/corpfin/cf-manual/topic-9-mdna).

Cost savings, restructuring, and synergies: best examples of MD&A future statements

Another rich source of examples of forward-looking statements in MD&A is restructuring and M&A. Here, management is effectively selling a future state to investors.

A realistic example of a cost-savings statement:

“In connection with our 2024 restructuring program, we expect to realize annualized cost savings of approximately \(150 million by the end of fiscal 2026, primarily from workforce reductions, facility consolidations, and supply chain efficiencies. We expect to incur total pre-tax restructuring charges of approximately \)90 million, substantially all of which will be recognized by the end of fiscal 2025.”

For a merger or acquisition, an MD&A might include forward-looking synergy statements like:

“We expect the acquisition of XYZ Corp. to be accretive to adjusted EPS in the first full year following closing. We currently anticipate realizing approximately $200 million in annual run-rate cost synergies by the end of year three, driven by procurement savings, elimination of duplicative corporate functions, and optimization of our combined manufacturing footprint.”

These are classic examples of forward-looking statements in MD&A because they:

• Project future savings and earnings impact.
• Include estimates and timelines.
• Depend on management’s ability to execute very specific plans.

They also sit squarely in the SEC’s crosshairs if they’re unrealistic. The safer disclosures explain the key assumptions and risks.

Capital expenditures, liquidity, and capital allocation: examples include funding plans and leverage targets

MD&A is where companies explain how they plan to fund growth, manage debt, and return capital. These are fertile ground for forward-looking language.

A straightforward example of a capital expenditure disclosure:

“We expect capital expenditures in 2025 to be in the range of \(2.0 billion to \)2.3 billion, with approximately 60% directed to capacity expansion in our data center infrastructure and 25% to maintenance of existing facilities. We intend to fund these expenditures primarily from operating cash flows.”

A liquidity-focused example of forward-looking statements in MD&A could look like this:

“Based on our current plans and business conditions, we believe that cash on hand, cash generated from operations, and available borrowings under our revolving credit facility will be sufficient to meet our working capital, capital expenditure, and debt service requirements for at least the next 12 months.”

And for capital allocation:

“Subject to market conditions and Board approval, we expect to continue returning capital to shareholders through dividends and share repurchases. We currently intend to target a long-term gross leverage ratio of approximately 2.0x to 2.5x EBITDA.”

These examples of forward-looking statements in MD&A are especially important in stressed markets. In 2024–2025, with higher-for-longer interest rates, investors are scrutinizing:

• How companies plan to refinance upcoming debt maturities.
• Whether they can sustain dividends and buybacks.
• How they will fund AI and digital investments without overleveraging.

The SEC expects MD&A to discuss known liquidity trends and uncertainties, not just repeat the balance sheet. The Commission’s guidance on liquidity and capital resources in MD&A is worth reading directly (https://www.sec.gov/corpfin/cf-manual/topic-9-mdna#9-11).

Technology, AI, and digital transformation: newer examples of forward-looking MD&A language

If you want 2024–2025 flavor, look at how companies talk about AI and digital initiatives. These are some of the best examples of forward-looking statements in MD&A today because the upside is big and the uncertainty is bigger.

A realistic AI-related example:

“We expect to increase our investments in artificial intelligence and machine learning capabilities in 2025, including expanding our AI research team and integrating generative AI tools into our core product suite. We believe these investments will enhance customer productivity and support mid-teens annual revenue growth in our software segment over the next three to five years. However, the timing and magnitude of these benefits are uncertain and will depend on customer adoption rates, competitive responses, and evolving regulatory frameworks for AI.”

A digital transformation example:

“We plan to complete the migration of our core platforms to a modern cloud-based architecture by the end of 2026. We expect this transformation to reduce long-term infrastructure costs, improve scalability, and accelerate product development cycles, although we anticipate elevated capitalized software and implementation costs during the transition period.”

These examples of MD&A forward-looking statements do two important things:

• They tie technology investments to financial outcomes (growth, cost, scalability).
• They acknowledge regulatory and adoption risks, which is increasingly important as agencies like the FTC and EU regulators scrutinize AI use and marketing.

For broader context on how technology and AI are reshaping business models, the U.S. National Institute of Standards and Technology (NIST) has useful resources on AI risk management (https://www.nist.gov/itl/ai-risk-management-framework).

Climate, ESG, and regulatory change: examples include net-zero targets and compliance costs

Climate and ESG disclosures have exploded in the last few years, and MD&A is where many companies knit together sustainability goals with financial impacts. These are some of the most closely watched examples of forward-looking statements in MD&A.

A typical climate-related example:

“We have set a goal to achieve net-zero greenhouse gas emissions across our operations by 2040. To support this goal, we expect to invest approximately $500 million in energy efficiency projects, renewable energy procurement, and fleet electrification over the next 10 years. We also expect to incur incremental operating costs related to carbon pricing mechanisms and evolving environmental regulations in certain jurisdictions.”

Another example of a regulatory-forward statement:

“We expect that implementation of new climate-related disclosure rules and other sustainability reporting standards will increase our compliance and reporting costs beginning in 2025. We are investing in systems and internal controls to collect, verify, and report climate-related data, and we anticipate that these investments will be phased in over several years.”

These examples of forward-looking statements in MD&A connect directly to evolving regulatory frameworks. While climate rules are still in motion, the SEC, the European Union, and other jurisdictions are all pushing for more decision-useful climate and ESG information in financial reporting. The U.S. Environmental Protection Agency (EPA) provides background on greenhouse gas reporting programs (https://www.epa.gov/ghgreporting), which often influence corporate planning.

Risk, uncertainty, and safe harbor: how examples of MD&A forward-looking statements stay compliant

If you read enough filings, you’ll notice that the most polished examples of forward-looking statements in MD&A always travel with qualifiers. The Private Securities Litigation Reform Act of 1995 (PSLRA) created a safe harbor for forward-looking statements, but only if companies:

• Identify them as forward-looking, and
• Accompany them with meaningful cautionary statements about risks and uncertainties.

That’s why you see language like this near the start or end of MD&A:

“Forward-looking statements in this MD&A are based on our current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, changes in general economic conditions, inflation, interest rates, competitive pressures, cybersecurity incidents, supply chain disruptions, geopolitical events, public health crises, and changes in laws and regulations.”

The best examples of forward-looking statements in MD&A don’t stop at generic lists. They connect specific risks to specific forward-looking claims. For instance:

“Our expectation that we will achieve mid-single-digit revenue growth in 2025 assumes no material deterioration in consumer confidence and continued moderation in inflation. A significant slowdown in global economic activity, a resurgence of supply chain disruptions, or more persistent inflation could adversely affect our ability to achieve this outlook.”

That kind of pairing—outlook plus what could break it—is exactly what the SEC wants when it talks about “known trends and uncertainties.”

For reference, the SEC’s MD&A guidance (Topic 9 in the Division of Corporation Finance Financial Reporting Manual) discusses how to present trends and uncertainties in a way that helps investors understand the company’s future prospects: https://www.sec.gov/corpfin/cf-manual.

Pulling it together: how to recognize strong examples of forward-looking statements in MD&A

By now, you’ve seen multiple categories of examples of forward-looking statements in MD&A:

• Revenue, margin, and EPS guidance
• Cost savings, restructuring, and M&A synergies
• Capital expenditures, liquidity, and leverage targets
• Technology, AI, and digital transformation plans
• Climate, ESG, and regulatory change impacts
• Risk and safe harbor language tied to future expectations

When you evaluate or draft MD&A, look for these markers:

1. Clear future orientation
Words like “expect,” “plan,” “intend,” “believe,” “target,” “anticipate,” “estimate,” and “project” are all red flags (in a good way) that you’re looking at a forward-looking statement.

2. Time-bound and quantified where possible
The strongest examples include time frames (e.g., “by the end of 2026”) and numbers (e.g., “$150 million in annualized savings,” “mid-single-digit growth”). Vague promises without time or scale are less helpful to investors and more likely to be viewed as marketing.

3. Linked to drivers and assumptions
Good MD&A doesn’t just say, “We expect growth.” It says why—for example, new product launches, AI features, pricing actions, new markets, or regulatory changes.

4. Balanced with risk and uncertainty
The best examples of MD&A forward-looking statements are realistic. They spell out what could go wrong, from macroeconomic conditions to regulatory shifts to execution risk.

5. Consistent across the filing
Forward-looking statements in MD&A should line up with the risk factors, business description, and financial statements. If MD&A promises aggressive growth while risk factors read like a disaster movie, expect questions from investors and regulators.

If you’re a preparer, these patterns help you write MD&A that informs investors and respects the legal boundaries. If you’re an analyst or investor, they help you separate meaningful guidance from wishful thinking.

FAQ: common questions about examples of forward-looking statements in MD&A

Q1. What are some common examples of forward-looking statements in MD&A that investors should focus on?
Investors usually pay closest attention to statements about future revenue and earnings, margin expansion, capital allocation plans (dividends, buybacks, leverage targets), major cost-savings programs, and large strategic initiatives like AI investments or net-zero commitments. These examples of forward-looking statements in MD&A have direct implications for valuation and risk.

Q2. Can you give an example of a weak forward-looking statement versus a strong one?
A weak example of a forward-looking statement in MD&A might be: “We expect to grow our business in the coming years.” It’s vague and unhelpful. A stronger version: “We expect mid-single-digit revenue growth in 2025, driven primarily by increased adoption of our subscription products and expansion into two new international markets, assuming stable macroeconomic conditions.” The second gives a time frame, magnitude, and drivers.

Q3. Are forward-looking statements in MD&A legally binding commitments?
No. As long as they are identified as forward-looking and accompanied by meaningful cautionary language, they are expectations or projections, not guarantees. That’s the point of the safe harbor framework. However, if management repeatedly makes aggressive statements that lack a reasonable basis, they can still face regulatory scrutiny or litigation.

Q4. How do forward-looking statements in MD&A differ from risk factors?
MD&A forward-looking statements describe what management expects to happen and how. Risk factors describe what could go wrong. The best filings connect the two: for example, an MD&A outlook that says, “We expect to achieve X, assuming Y,” and a risk factor that explains what happens if Y doesn’t hold.

Q5. Where can I see real examples of forward-looking statements in MD&A from public companies?
The best way is to read Form 10-K and 10-Q filings on the SEC’s EDGAR database (https://www.sec.gov/edgar/search). Open any large-cap company’s latest 10-K, go to the MD&A section, and look for the safe harbor paragraph, the “Outlook” or “Future Prospects” section, and any discussion of guidance, cost savings, or major initiatives.

Forward-looking statements are the heartbeat of MD&A: they tell you not just where a company has been, but where management thinks it can go. Once you’ve seen enough real examples of forward-looking statements in MD&A, you start to recognize the difference between cautious realism and wishful thinking—and that’s where the real analytical edge lives.