Moody’s ( (MCO) ) has released its Q1 earnings. Here is a breakdown of the information Moody’s presented to its investors.
Moody’s Corporation, a global leader in credit ratings, research, and risk analysis, operates primarily in the financial services sector, providing valuable insights and tools to help clients navigate complex financial landscapes.
Moody’s Corporation reported robust financial results for the first quarter of 2025, with significant revenue growth across its two main business segments, Moody’s Analytics and Moody’s Investors Service. Despite market volatility, the company has updated its full-year guidance, reflecting confidence in its strategic direction and financial resilience.
The company achieved a record revenue of $1.9 billion for the quarter, marking an 8% increase from the previous year. Both Moody’s Analytics and Moody’s Investors Service contributed to this growth, with revenues rising by 8% in each segment. The company’s diluted earnings per share also saw a notable increase, with a 10% rise in diluted EPS and a 14% rise in adjusted diluted EPS. Operating expenses grew by 9%, driven by investments, restructuring charges, and mergers and acquisitions.
Moody’s strategic shift towards subscription-based solutions is evident in its analytics division, where recurring revenue now accounts for 96% of total revenue. The Investors Service segment also recorded its highest quarterly revenue, driven by strong demand for high-quality credits and refinancing activities. Despite some challenges, such as a decline in financial institutions’ revenue, the company maintained a strong operating margin, demonstrating effective expense management.
Looking ahead, Moody’s management remains optimistic about the company’s growth prospects, expecting adjusted diluted EPS to grow by 9% year-over-year at the midpoint of their guidance. The company plans to continue investing in its capabilities to meet customer needs and drive sustainable growth, despite potential economic uncertainties and market fluctuations.