Best examples of trends and outlook in MD&A that actually help readers

If you want to write better MD&A, start by studying examples of trends and outlook in MD&A from companies that investors actually read. Look at large U.S. filers in your sector, skim their MD&A sections in recent 10‑K and 10‑Q filings on EDGAR, and pay attention to how they:

• Explain why revenue, margins, or cash flows moved
• Connect short‑term performance to long‑term strategy
• Address new risks (AI, cybersecurity, supply chain, regulation) directly

The SEC has been very clear: MD&A should focus on known trends and uncertainties that are reasonably likely to affect future results. The Commission’s guidance on MD&A expectations is worth reading straight from the source on SEC.gov: https://www.sec.gov/corpfin/cf-manual/topic-9

Below are realistic examples of trends and outlook in MD&A language across different themes. They’re written in plain English, but they follow the spirit of what you see in high‑quality filings.

Revenue and demand: examples of trends and outlook in MD&A

Revenue is usually the first stop for investors, so your MD&A should not just restate the income statement. Strong examples of trends and outlook in MD&A on revenue explain drivers.

Example of demand shift (consumer products):

“Net sales increased 7.4% in 2024 compared to 2023, driven primarily by higher volumes in our premium skincare line and a 3.1 percentage point contribution from price increases implemented in the first half of the year. These gains were partially offset by lower volumes in our legacy fragrance products, reflecting a continued shift in consumer preference toward wellness‑oriented categories.

Looking ahead to 2025, we expect mid‑single‑digit net sales growth, supported by continued demand for our premium skincare products and expansion into two new international markets. We anticipate ongoing softness in the fragrance category and are reallocating marketing spend and shelf space accordingly.”

This is a good example of trends and outlook in MD&A because it:

• Distinguishes volume vs. price
• Identifies a trend (shift toward wellness products)
• States how management is responding (reallocating spend)
• Provides a directional outlook (mid‑single‑digit growth) without over‑promising

Example of cyclical demand (industrial manufacturer):

“Revenue decreased 5.9% in 2024, reflecting lower orders from construction and mining customers as they reduced capital spending in response to higher interest rates. Orders stabilized in the fourth quarter, and our backlog increased 2.3% sequentially.

While we do not expect a rapid rebound in heavy equipment demand in 2025, we believe order activity has reached a trough. We anticipate flat to slightly positive revenue next year, with stronger growth potential in 2026 if interest rates normalize and infrastructure spending under the Infrastructure Investment and Jobs Act continues as planned.”

Here the outlook links to macro trends—interest rates and U.S. infrastructure spending. For context on federal infrastructure programs, many companies point to public information from the U.S. Department of Transportation: https://www.transportation.gov

Pricing, inflation, and margins: examples include cost pressure and pricing power

Inflation and pricing power have been front and center from 2022 through 2024. Investors want to know: are you passing costs through or eating them?

Example of cost inflation and pricing (food manufacturer):

“Gross margin decreased 120 basis points in 2024 due to higher input costs for grains, dairy, and packaging materials, partially offset by price increases and productivity initiatives. Average commodity costs rose approximately 6% year over year, driven by weather‑related supply constraints and elevated transportation costs.

We expect commodity cost inflation to moderate in 2025 but remain above pre‑2020 levels. Our pricing actions taken in late 2024 should offset most of the remaining inflation, and we are targeting flat to slightly higher gross margin in 2025, assuming no significant disruption to global grain supplies.”

Note what this example of MD&A outlook does well:

• Quantifies margin compression
• Attributes it to specific cost categories
• Offers a realistic, conditional outlook ("assuming no significant disruption")

Example of improving margins through mix (tech hardware):

“Operating margin improved to 18.2% in 2024 from 15.7% in 2023, primarily due to a richer product mix as sales of our higher‑margin enterprise servers grew 24%, while lower‑margin consumer devices declined 9%.

We expect the mix shift toward enterprise customers to continue in 2025, supported by demand for AI‑optimized servers. As a result, we anticipate further modest operating margin expansion, even if total unit volumes remain relatively flat.”

This is one of the best examples of trends and outlook in MD&A because it ties a structural trend (mix shift to enterprise and AI servers) directly to a forward‑looking margin story.

Technology and AI: modern examples of trends and outlook in MD&A

From 2023 onward, investors have been laser‑focused on AI. Generic “we are exploring AI” statements are not helpful. Strong examples of trends and outlook in MD&A on technology are concrete about investment, risk, and payoff.

Example of AI investment (software company):

“In 2024, we increased R&D spending by 19% as we accelerated investment in AI‑powered features across our product portfolio. These investments negatively impacted operating margin by approximately 150 basis points.

We expect AI‑related R&D to remain elevated in 2025 as we complete integration of generative AI capabilities in our core workflow products. While these initiatives are not expected to materially contribute to revenue until late 2025, we believe they will enhance customer retention and support higher average contract values over time.”

Example of AI risk and regulation (healthcare data analytics):

“Our use of AI and machine learning in clinical decision support tools exposes us to evolving regulatory frameworks and ethical considerations. Several jurisdictions are considering or have adopted AI‑specific regulations that could increase compliance costs or limit certain use cases.

We are monitoring regulatory developments, including emerging guidance on AI in healthcare from federal agencies and professional bodies. We expect regulatory clarity to increase over the next two to three years and are investing in governance, model transparency, and bias testing to position our products for long‑term adoption.”

For companies in healthcare and life sciences, it’s common to reference public research and policy discussions from sources like the National Institutes of Health: https://www.nih.gov

Supply chain, logistics, and geopolitics: real examples of MD&A disclosure

Supply chain risk didn’t disappear after 2021; it just got more complicated. The best examples of trends and outlook in MD&A do not pretend that logistics and geopolitical risk are “one‑time” issues.

Example of supply chain normalization (consumer electronics):

“Component availability improved significantly in 2024 compared to the prior two years, resulting in lower spot prices for semiconductors and reduced use of air freight. As a result, we reduced our average lead times from 18 weeks to 10 weeks and decreased logistics expense as a percentage of sales by 90 basis points.

We expect supply conditions to remain generally favorable in 2025; however, we continue to monitor geopolitical developments in key sourcing regions. To mitigate potential disruptions, we are qualifying additional suppliers in North America and Europe and increasing safety stock for critical components.”

Example of geopolitical exposure (energy company):

“Approximately 27% of our 2024 production came from assets in regions subject to heightened geopolitical risk. While operations were not materially disrupted during the year, new sanctions or trade restrictions could impact our ability to market certain volumes or repatriate cash.

We are evaluating portfolio actions to reduce our exposure to higher‑risk jurisdictions over the next five years and are prioritizing capital allocation toward lower‑risk regions and energy transition projects.”

This kind of language is a realistic example of trends and outlook in MD&A for companies facing geopolitical uncertainty: it acknowledges risk, describes monitoring and mitigation, and links to capital allocation decisions.

Labor, wages, and remote work: examples include talent and cost trends

Labor markets have shifted meaningfully since 2020, and investors want to understand both cost and capability.

Example of wage inflation and productivity (services company):

“Compensation and benefits expense increased 8.6% in 2024, reflecting wage inflation in technical roles and expanded hiring in our consulting segment. Partially offsetting these increases, billable utilization improved to 74% from 70% in 2023 as we optimized staffing and reduced non‑billable activities.

We expect wage pressure for specialized talent to continue in 2025, particularly in data science and cybersecurity. To manage these trends, we are expanding our near‑shore delivery centers and investing in internal training programs to develop talent rather than relying solely on external hiring.”

Example of hybrid work and office footprint (financial services):

“We continued to adopt a hybrid work model in 2024, with approximately 60% of employees working remotely at least three days per week. As a result, we reduced our office footprint by 12% and recognized $18 million in restructuring charges related to lease exits.

We expect further modest reductions in office space over the next two years as leases expire, which should lower occupancy costs as a percentage of revenue. However, we anticipate incremental investment in collaboration technology and periodic in‑person events to support our culture and training.”

For context on broader U.S. labor market trends, many MD&A discussions indirectly reflect data from sources like the U.S. Bureau of Labor Statistics: https://www.bls.gov

Capital allocation, liquidity, and interest rates: examples of outlook language

With interest rates rising from 2022 through 2024, MD&A readers pay close attention to debt, liquidity, and capital allocation.

Example of higher interest expense (leveraged company):

“Interest expense increased 23% in 2024, primarily due to higher benchmark interest rates on our variable‑rate debt. Approximately 68% of our outstanding borrowings are subject to variable rates.

We expect interest expense to remain elevated in 2025, even if benchmark rates decline modestly, as we refinance maturing fixed‑rate notes at higher current market rates. To mitigate this impact, we are prioritizing debt reduction over share repurchases and evaluating opportunities to extend maturities.”

Example of strong balance sheet and flexibility (investment‑grade issuer):

“We ended 2024 with $4.2 billion of cash and short‑term investments and no significant debt maturities until 2028. Our investment‑grade credit ratings provide us with access to capital at attractive terms.

We intend to maintain a conservative balance sheet while continuing to invest in growth. Over the next three years, we expect to return 40–50% of free cash flow to shareholders through dividends and share repurchases, with the remainder allocated to organic investment and selective acquisitions.”

These are practical examples of trends and outlook in MD&A that show how macro conditions (rates and credit markets) shape capital allocation.

ESG, climate, and regulatory trends: newer examples of MD&A disclosure

Environmental, social, and governance (ESG) topics and climate‑related risks are increasingly showing up in MD&A, especially for large filers.

Example of climate‑related cost and regulation (utilities):

“Capital expenditures increased 11% in 2024, driven primarily by investments in grid modernization and renewable generation to meet state decarbonization targets. We expect these investments to continue at elevated levels through at least 2028.

We anticipate that a significant portion of these costs will be recoverable through regulated rates, subject to approval by state public utility commissions. However, there is uncertainty regarding the timing and extent of cost recovery, which could affect our cash flows in the near term.”

Example of ESG disclosure trend (consumer company):

“Retail customers and institutional investors continue to prioritize sustainability in their purchasing and investment decisions. In response, we expanded our product labeling and reporting on environmental metrics in 2024.

We expect demand for transparent ESG information to increase and are investing in data collection and reporting systems to meet emerging disclosure standards in the U.S. and Europe.”

Some companies reference public guidance or academic work on climate and ESG reporting from universities and NGOs; for instance, research from Harvard University on climate finance and disclosure is often cited in industry discussions: https://www.harvard.edu

How to write your own MD&A: patterns from the best examples

After looking at these examples of trends and outlook in MD&A, a few patterns stand out that you can apply immediately:

• Tie numbers to drivers. Don’t just say revenue increased—explain volume, price, mix, and timing.
• Separate structural trends from temporary noise. Investors care more about durable shifts.
• Be directionally clear. “We expect flat to slightly higher margins” is more useful than “We remain optimistic.”
• Use conditional language appropriately. Connect your outlook to assumptions (rates, regulation, supply conditions).
• Align outlook with strategy. If you say AI is a major opportunity, your capex and R&D should reflect that.

When you study real examples of trends and outlook in MD&A, you’ll notice that the strongest disclosures feel almost like a candid management memo to the board: factual, forward‑looking, and grounded in data.

FAQ: examples of trends and outlook in MD&A

Q1. What are the best examples of trends and outlook in MD&A that regulators like to see?
Regulators don’t endorse specific companies, but the SEC has repeatedly pointed to MD&A sections that clearly discuss known trends and uncertainties, quantify impacts where possible, and avoid vague optimism. The best examples include:

• Transparent discussion of demand shifts and pricing
• Clear linkage between macro factors (rates, inflation, regulation) and company performance
• Balanced outlooks that acknowledge both risks and opportunities

Q2. Can you give an example of a weak MD&A trends and outlook disclosure?
A weak example of MD&A outlook would be: “We remain confident in our long‑term strategy and believe we are well‑positioned for future growth.” That tells investors nothing. There’s no discussion of what is changing, what management is actually doing, or what might go wrong.

Q3. How specific should forecasts be in MD&A trends and outlook?
You don’t need (and usually shouldn’t provide) precise earnings forecasts in MD&A. Strong examples of trends and outlook in MD&A are often directional: “mid‑single‑digit revenue growth,” “flat to slightly higher margins,” or “elevated capex over the next three years.” The key is to connect those directional statements to clear drivers and assumptions.

Q4. Are there examples of MD&A that focus heavily on non‑financial trends?
Yes. Many companies now include trends and outlook discussions on technology adoption, regulatory changes, ESG expectations, and workforce dynamics, even when the immediate financial impact is modest. These are still valid examples of trends and outlook in MD&A, as long as management reasonably expects them to affect future performance.

Q5. Where can I find real examples of trends and outlook in MD&A for my industry?
The best place is the SEC’s EDGAR database, which hosts 10‑K and 10‑Q filings for U.S. public companies. Look up leading companies in your sector and study their MD&A sections over several years to see how their trends and outlook language evolved with market conditions.