Moody’s (NYSE:MCO) Posts Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Moody’s (NYSE:MCO) released its quarterly earnings data on Wednesday. The business services provider reported $4.68 EPS for the quarter, topping analysts’ consensus estimates of $4.26 by $0.42, FiscalAI reports. Moody’s had a net margin of 34.25% and a return on equity of 80.35%. The firm had revenue of $2.19 billion during the quarter, compared to the consensus estimate of $2.09 billion. During the same quarter in the previous year, the company posted $3.56 earnings per share. The firm’s revenue was up 15.1% on a year-over-year basis. 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 NYSE MCO opened at $472.42 on Friday. The stock has a market cap of $82.53 billion, a P/E ratio of 29.96, a P/E/G ratio of 2.49 and a beta of 1.34. The company has a quick ratio of 1.16, a current ratio of 1.19 and a debt-to-equity ratio of 2.01. The firm’s 50-day simple moving average is $464.19 and its 200 day simple moving average is $464.75. Moody’s has a fifty-two week low of $402.28 and a fifty-two week high of $546.88.

Moody’s Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 14th will be paid a dividend of $1.03 per share. This represents a $4.12 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, August 14th. Moody’s’s payout ratio is currently 29.53%.

Insider Buying and Selling

In related news, SVP Richard G. Steele sold 158 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $453.67, for a total transaction of $71,679.86. Following the transaction, the senior vice president owned 1,985 shares in the company, valued at $900,534.95. This trade represents a 7.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 Monday, June 1st. The stock was sold at an average price of $453.67, for a total value of $665,533.89. Following the sale, the chief executive officer directly owned 52,564 shares in the company, valued at approximately $23,846,709.88. The trade was a 2.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 3,250 shares of company stock valued at $1,495,098. Company insiders own 0.14% of the company’s stock.

Hedge Funds Weigh In On Moody’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Compound Planning Inc. increased its position in shares of Moody’s by 23.8% during the 4th quarter. Compound Planning Inc. now owns 1,621 shares of the business services provider’s stock valued at $828,000 after purchasing an additional 312 shares during the period. Invesco Ltd. lifted its holdings in shares of Moody’s by 1.3% in the fourth quarter. Invesco Ltd. now owns 1,008,844 shares of the business services provider’s stock valued at $515,368,000 after buying an additional 13,348 shares during the period. Birchwood Financial Partners Inc. bought a new position in Moody’s during the fourth quarter valued at about $26,000. Corient Private Wealth LLC grew its holdings in Moody’s by 37.0% during the fourth quarter. Corient Private Wealth LLC now owns 98,838 shares of the business services provider’s stock worth $47,059,000 after acquiring an additional 26,685 shares during the period. Finally, Mercer Global Advisors Inc. ADV raised its position in Moody’s by 4.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,410 shares of the business services provider’s stock worth $10,938,000 after acquiring an additional 965 shares in the last quarter. 92.11% of the stock is owned by institutional investors.

Key Moody’s News

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

• Positive Sentiment: Moody’s beat second-quarter expectations, reporting $4.68 EPS on $2.19 billion of revenue, with sales up 15.1% year over year. Management also raised its stock repurchase outlook, which signals confidence in cash generation and capital returns. Moodys Corp (MCO) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance
• Positive Sentiment: Revenue growth was supported by stronger bond issuance activity and steady demand for Moody’s analytics business, reinforcing the company’s “wide moat” positioning and durable growth profile. MCO Q2 Earnings Beat on Rising Analytics Demand & Higher Issuances
• Neutral Sentiment: Moody’s reaffirmed its FY 2026 EPS outlook of 16.50 to 17.00, which is broadly in line with Street expectations and suggests management sees continued stability after the strong quarter. Moody’s (MCO) Tops Q2 Earnings and Revenue Estimates
• Neutral Sentiment: The company also declared a quarterly dividend of $1.03 per share, underscoring shareholder returns, but this is a routine capital-allocation update rather than a major catalyst. Moody’s declares $1.03 dividend
• Negative Sentiment: Investors appear focused on Moody’s lowered 2026 operating margin guidance, which raises concerns that costs may be offsetting some of the company’s revenue strength and helps explain why the shares have been under pressure despite the earnings beat. Moody’s lowers 2026 operating margin guidance, raises stock repurchases outlook

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Robert W. Baird increased their price objective on shares of Moody’s from $557.00 to $572.00 and gave the stock an “outperform” rating in a research note on Thursday. JPMorgan Chase & Co. raised their price target on Moody’s from $530.00 to $600.00 and gave the stock an “overweight” rating in a report on Monday. UBS Group restated a “neutral” rating and set a $505.00 price objective on shares of Moody’s in a research report on Thursday. Rothschild & Co Redburn set a $500.00 price objective on Moody’s in a research note on Thursday, June 18th. Finally, Weiss Ratings raised Moody’s from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $553.11.

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.