This paper explores the effect of weather-induced mood on analyst forecast behaviour and performance in European financial markets. Drawing on the behavioural finance and psychology literature, we study whether changes in sunshine affect the earnings projections of analysts via cognitive processes linked to mood. We use analyst prediction data for Europe (1999–2018) and localised meteorological information to analyse the association between variance in sunshine and analyst forecast bias and accuracy. Sunlight serves as an exogenous proxy for mood, where sunny circumstances indicate high mood and cloudy situations indicate somewhat negative mood states. The results show that experts, on average make bigger prediction mistakes on bright days, but projections are more accurate on overcast days. Also, analyst forecasts are skewed optimistically in sunny times and pessimistically in cloudier periods. These findings imply that good mood can favour heuristic and less critical information processing, whereas negative mood might lead to a more systematic and detail-oriented examination. The impacts seem to work on a subconscious level and are not readily apparent to the analysts themselves. In summary, the results confirm behavioural theories that propose environmental influences impact financial decision-making via mood-induced cognitive processes. This research adds to the limited literature on the behavioural drivers of analyst conduct and has practical implications for investors, corporations and financial institutions that want to understand the significance of psychological and environmental elements in financial forecasting.