Moody's Corp. (MCO)
NYSE:MCO
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Earnings Data
Report Date
Jul 28, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
4.2Last Year’s EPS
3.56Same Quarter Last Year
Strong Buy
Based on 18 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong top-line growth in both Ratings and Analytics, meaningful margin expansion (company margin +150 bps; MA +250 bps; MIS margin 66.7%), robust cash generation (+26% free cash flow) and aggressive capital returns, alongside notable client wins, ARR growth (ARR $3.6B, +8% YoY) and strategic AI and digital-asset initiatives. Offsetting risks include a large decline in MA transactional revenue due to divestitures, persistent market volatility that could compress issuance and revenue timing, regulatory scrutiny around AI decisioning that may slow adoption, and expected seasonal/second-half softening in issuance. On balance, the positive operating and financial momentum, strong cash returns and visible ARR/recurring revenue traction materially outweigh the identified near-term headwinds.Company Guidance
Strong Financial Performance and Margin Expansion
Company-level adjusted operating margin rose 150 basis points to 53.2%. Adjusted diluted EPS was $4.33, up 13% year-over-year. Free cash flow was $844 million, up 26% year-over-year.
Robust Shareholder Returns
Returned approximately $1.7 billion to shareholders through buybacks and dividends in Q1 and increased full-year share repurchase guidance by $500 million to about $2.5 billion. Company expects to return ~110% of free cash flow to shareholders by year-end.
Record and Elevated Rated Issuance
Rated issuance surpassed $2 trillion in Q1 for the first time ever, led by near-record investment-grade volumes and several jumbo AI-related financings totaling more than $100 billion.
Ratings Revenue and Profitability Strength
MIS transactional revenue grew 8% year-over-year and MIS adjusted operating margin was 66.7%, reflecting strong operating leverage and technology investments. Investment grade revenue within Corporate Finance was up 33% year-over-year; specialty grade revenue grew 31%.
Exceptional Private Credit Growth
Private credit–related revenue in Ratings grew more than 80% year-over-year, driven by stronger demand for independent credit assessment in private markets.
Moody's Analytics Recurring Revenue Momentum and ARR Growth
MA revenue increased 8% as reported (6% organic constant currency). Recurring revenue grew 11% as reported (7% organic) and comprised 98% of MA revenue. ARR ended Q1 at $3.6 billion, up 8% year-over-year.
MA Margin Expansion and Efficiency Gains
MA adjusted operating margin was 32.5%, up 250 basis points year-over-year, and management reiterated a full-year MA margin target of 34%–35% with mid- to high-30s by end of 2027, citing restructuring, cost discipline and AI/technology efficiency gains.
High Retention and Customer Wins
Quarterly MA retention improved to 96% (trailing 12-month retention 95%). Notable client wins included multiyear deals with two of the world’s top five asset managers (~$6M and >$2.5M), a top-3 reinsurer adoption, and a global real estate firm choosing Moody’s for compliance across ~275,000 sites.
Strategic Partnerships and Distribution Expansion
Announced integrations enabling Moody's licensed intelligence inside enterprise AI environments and MCPs (ChatGPT Enterprise, Claude/Anthropic MCT), availability via AWS Marketplace, and a dedicated Moody’s agent integrated with Microsoft 365 Copilot — expanding embedded distribution and enterprise AI workflows.
First-Mover Digital Asset Initiatives
Published the first rating methodology for stablecoins, became the first rating agency to operate a node on The Canton Network (blockchain-agnostic), and rated an inaugural bitcoin-backed bond — demonstrating early leadership in digital finance.
MCO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MCO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $459.59 | $466.72 | +1.55% |
Feb 18, 2026 | $422.31 | $449.79 | +6.51% |
Oct 22, 2025 | $482.92 | $470.83 | -2.50% |
Jul 23, 2025 | $496.16 | $504.87 | +1.76% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Moody's Corp. (MCO) report earnings?
Moody's Corp. (MCO) is schdueled to report earning on Jul 28, 2026, Before Open (Confirmed).
What is Moody's Corp. (MCO) earnings time?
Moody's Corp. (MCO) earnings time is at Jul 28, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MCO EPS forecast?
MCO EPS forecast for the fiscal quarter 2026 (Q2) is 4.2.