Moody’s (NYSE:MCO) Announces Earnings Results, Beats Estimates By $0.11 EPS

Moody’s (NYSE:MCO) released its earnings results on Wednesday. The business services provider reported $4.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.11, Zacks reports. The firm had revenue of $2.08 billion during the quarter, compared to analyst estimates of $2.11 billion. Moody’s had a return on equity of 66.01% and a net margin of 31.86%.Moody’s’s revenue was up 8.1% compared to the same quarter last year. During the same period last year, the business posted $3.83 earnings per share. Moody’s updated its FY 2026 guidance to 16.400-17.000 EPS.

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

• Strong Q1 financials: Both MIS and MA revenue grew ~8%, adjusted operating margin expanded 150 bps to 53.2%, adjusted diluted EPS was $4.33 (up 13%), and Moody’s returned $1.7 billion to shareholders while increasing full-year buyback guidance by $500 million to ~$2.5 billion.
• Ratings demand is structural: Rated issuance topped $2 trillion for the first time—driven by near?record investment?grade and jumbo AI?related financings—and private?credit related ratings revenue grew >80% year?over?year.
• Analytics momentum and recurring revenue: MA ARR ended Q1 at $3.6 billion (up 8% YoY), recurring revenue represented 98% of MA revenue, with strong ARR growth in lending (18%), Decision Solutions (10%) and KYC (13%), and MA adjusted operating margin expanding to 32.5% with targets to reach mid?to?high 30s by end of 2027.
• AI and distribution partnerships accelerating reach: Moody’s licensed intelligence is being embedded via MCP integrations (ChatGPT Enterprise, Claude/Anthropic), AWS Marketplace, and a dedicated Moody’s agent in Microsoft 365 Copilot, enabling agent?ready, auditable workflows while preserving governance and BYOL licensing.
• Portfolio actions and guidance caveats: MA transactional revenue fell ~54% due to divestitures (regulatory solutions sale closed Apr 30), pushing reported organic revenue toward the lower end of prior guidance even as ARR and recurring growth remain anchored in high single digits; management maintained full?year guidance but flagged downside risk if volatility persists beyond April.

Moody’s Stock Down 2.6%

NYSE:MCO traded down $12.22 during midday trading on Thursday, hitting $454.50. 51,586 shares of the company were exchanged, compared to its average volume of 1,284,691. Moody’s has a fifty-two week low of $402.28 and a fifty-two week high of $546.88. The company has a market capitalization of $80.90 billion, a PE ratio of 33.18, a price-to-earnings-growth ratio of 2.47 and a beta of 1.45. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 1.66. The company has a fifty day simple moving average of $444.97 and a 200 day simple moving average of $477.17.

Moody’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 15th will be paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 0.9%. The ex-dividend date is Friday, May 15th. Moody’s’s dividend payout ratio (DPR) is currently 30.12%.

Insider Buying and Selling at Moody’s

In other Moody’s news, SVP Richard G. Steele sold 375 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $456.71, for a total transaction of $171,266.25. Following the transaction, the senior vice president owned 2,459 shares of the company’s stock, valued at approximately $1,123,049.89. This trade represents a 13.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Robert Fauber sold 5,213 shares of Moody’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $456.71, for a total value of $2,380,829.23. Following the sale, the chief executive officer owned 75,789 shares in the company, valued at $34,613,594.19. This trade represents a 6.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,222 shares of company stock valued at $3,786,732 in the last 90 days. 0.14% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Moody’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC purchased a new position in shares of Moody’s during the second quarter worth approximately $267,000. Federated Hermes Inc. grew its position in Moody’s by 15.5% during the 2nd quarter. Federated Hermes Inc. now owns 10,916 shares of the business services provider’s stock worth $5,475,000 after purchasing an additional 1,461 shares during the last quarter. NewEdge Advisors LLC increased its stake 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 valued at $736,000 after purchasing an additional 86 shares during the period. CIBC Asset Management Inc increased its stake in Moody’s by 3.8% in the second quarter. CIBC Asset Management Inc now owns 25,303 shares of the business services provider’s stock valued at $12,692,000 after purchasing an additional 929 shares during the period. Finally, Treasurer of the State of North Carolina increased its stake in Moody’s by 0.4% in the second quarter. Treasurer of the State of North Carolina now owns 72,615 shares of the business services provider’s stock valued at $36,423,000 after purchasing an additional 280 shares during the period. Hedge funds and other institutional investors own 92.11% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on MCO. JPMorgan Chase & Co. decreased their target price on Moody’s from $600.00 to $560.00 and set an “overweight” rating for the company in a report on Thursday, February 19th. Wells Fargo & Company reiterated an “overweight” rating and issued a $590.00 target price on shares of Moody’s in a report on Thursday. Stifel Nicolaus decreased their target price on Moody’s from $574.00 to $540.00 and set a “buy” rating for the company in a report on Thursday, February 19th. Barclays decreased their price target on Moody’s from $580.00 to $550.00 and set an “overweight” rating for the company in a report on Monday, February 23rd. Finally, BMO Capital Markets reiterated a “market perform” rating on shares of Moody’s in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $544.50.

Key Moody’s News

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

• Positive Sentiment: Q1 EPS beat and record quarter — Moody’s reported $4.33 EPS (above estimates) and called the quarter “record,” driven by strong issuance and services demand; investors viewed the beat as confirmation of resilient fundamentals. Moody’s Beats Q1 Forecasts as Revenue and Earnings Top Expectations
• Positive Sentiment: Buyback increase — Management raised the share repurchase program to $2.5 billion, a direct capital-return move that supports EPS and signals confidence in cash generation. Moody’s Boosts Buybacks To $2.5 Billion Following Q1 Earnings Beat
• Positive Sentiment: Analytics and AI integration driving revenue mix — Management highlighted rising demand for analytics and AI-enabled products, which lifts higher-margin subscription/analytics revenue and supports long-term growth. MCO Q1 deep dive: AI integration and ratings demand drive growth amid volatility
• Positive Sentiment: Raised/updated annual outlook — Moody’s lifted its annual outlook on stronger analytics growth and issuance, which supports consensus-level EPS expectations and reduces near-term forecast risk. Moody’s profit rises on strong analytics growth, lifts annual forecast
• Neutral Sentiment: Dividend maintained and scheduled — Moody’s declared a quarterly dividend of $1.03/share (ex-dividend May 15, payable June 5), underscoring shareholder returns but the yield is modest (~0.9%).
• Neutral Sentiment: FY26 guidance range overlaps consensus but is slightly wide — Management set EPS guidance of $16.40–$17.00, which roughly brackets the street; that reduces downside surprise risk but leaves some uncertainty around the midpoint. Moody’s Corporation Achieved Record Results For First Quarter 2026
• Negative Sentiment: Revenue slightly missed consensus and costs rose — Q1 revenue was $2.08B versus estimates near $2.11B, and some coverage notes flagged rising expenses, which temper margin/leverage upside if costs persist. Moody’s Q1 earnings, revenue ahead of estimates

Moody’s Company Profile

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.