Moody’s (NYSE:MCO) Announces Quarterly Earnings Results

Moody’s (NYSE:MCO) released its quarterly earnings results on Wednesday. The business services provider reported $4.68 EPS for the quarter, beating analysts’ consensus estimates of $4.26 by $0.42, FiscalAI reports. The firm had revenue of $2.19 billion during the quarter, compared to analyst estimates of $2.09 billion. Moody’s had a net margin of 31.69% and a return on equity of 70.97%. The business’s revenue for the quarter was up 15.1% on a year-over-year basis. During the same period in the previous year, the business earned $3.56 EPS. Moody’s updated its FY 2026 guidance to 16.500-17.000 EPS.

Here are the key takeaways from Moody’s’ conference call:

• Moody’s reported a strong Q2 with enterprise revenue up 15%, adjusted operating income up 25%, adjusted operating margin expanding to 55.3%, and adjusted EPS rising 31% to $4.68.
• Ratings momentum remained robust, with transaction revenue up 34%, over $2 trillion of debt rated for a second straight quarter, and full-year issuance guidance raised to mid-single-digit growth.
• Moody’s Analytics continued to show healthy recurring growth, with ARR up nearly 9%, retention at 95%, and management reaffirming high-single-digit ARR growth for the full year.
• The company highlighted multiple growth drivers, including AI/data center financing, private credit, digital finance, and insurance-linked securities, which it believes support a durable multi-year issuance pipeline.
• Management raised full-year EPS guidance to $16.50-$17, expanded the restructuring program through 2027, and lifted share repurchase guidance to as much as $3 billion, while maintaining revenue guidance.

Moody’s Price Performance

Shares of Moody’s stock opened at $489.38 on Thursday. The company has a fifty day moving average of $463.40 and a 200-day moving average of $464.93. Moody’s has a 52-week low of $402.28 and a 52-week high of $546.88. The stock has a market capitalization of $85.50 billion, a price-to-earnings ratio of 35.08, a price-to-earnings-growth ratio of 2.52 and a beta of 1.34. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.16 and a current ratio of 1.16.

Moody’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 14th will be issued a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Friday, August 14th. Moody’s’s payout ratio is presently 29.53%.

Trending Headlines about Moody’s

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: Moody’s posted Q2 EPS of $4.68 and revenue of $2.19 billion, both ahead of Wall Street estimates, with revenue up 15.1% year over year. Strong bond issuance activity and steady analytics demand helped drive the results. Article title
• Positive Sentiment: The company raised its stock repurchase outlook, which can support shareholder returns and signals confidence in cash generation. Article title
• Neutral Sentiment: Moody’s declared a quarterly dividend of $1.03 per share, reinforcing its income profile, though this was expected and is unlikely to be the main driver of the stock today. Article title
• Negative Sentiment: Despite the earnings beat, Moody’s shares have been pressured by a slightly softer 2026 outlook: management guided EPS to $16.50-$17.00 and lowered operating margin guidance, suggesting some profit pressure ahead. Article title

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on MCO. Barclays lifted their price objective on Moody’s from $550.00 to $575.00 and gave the company an “overweight” rating in a research note on Friday, July 10th. Weiss Ratings upgraded Moody’s from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, July 15th. Bank of America restated a “buy” rating and issued a $565.00 price objective on shares of Moody’s in a research report on Wednesday, April 22nd. Morgan Stanley set a $512.00 price target on shares of Moody’s in a report on Wednesday. Finally, Wolfe Research restated an “outperform” rating and set a $535.00 price objective on shares of Moody’s in a research report on Thursday, April 23rd. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $551.42.

Insider Buying and Selling

In other Moody’s news, SVP Richard G. Steele sold 158 shares of Moody’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $453.67, for a total value of $71,679.86. Following the transaction, the senior vice president directly owned 1,985 shares of the company’s stock, valued at $900,534.95. The trade was a 7.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Fauber sold 1,467 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $466.39, for a total value of $684,194.13. Following the completion of the sale, the chief executive officer owned 75,189 shares of the company’s stock, valued at $35,067,397.71. The trade was a 1.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,250 shares of company stock worth $1,495,098 over the last ninety days. Insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Moody’s

Hedge funds and other institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC bought a new stake in shares of Moody’s during the 2nd quarter valued at about $267,000. Federated Hermes Inc. lifted its holdings in Moody’s by 15.5% in the second quarter. Federated Hermes Inc. now owns 10,916 shares of the business services provider’s stock worth $5,475,000 after buying an additional 1,461 shares during the period. NewEdge Advisors LLC lifted its holdings in Moody’s by 6.2% in the second quarter. NewEdge Advisors LLC now owns 1,468 shares of the business services provider’s stock worth $736,000 after buying an additional 86 shares during the period. CIBC Asset Management Inc boosted its position in Moody’s by 3.8% during the 2nd quarter. CIBC Asset Management Inc now owns 25,303 shares of the business services provider’s stock valued at $12,692,000 after acquiring an additional 929 shares in the last quarter. Finally, Treasurer of the State of North Carolina raised its position in shares of Moody’s by 0.4% in the 2nd quarter. Treasurer of the State of North Carolina now owns 72,615 shares of the business services provider’s stock worth $36,423,000 after acquiring an additional 280 shares in the last quarter. 92.11% of the stock is owned by institutional investors.

About Moody’s

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.