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

Moody’s (NYSE:MCO) announced its quarterly earnings data on Wednesday. The business services provider reported $3.64 EPS for the quarter, beating the consensus estimate of $3.39 by $0.25, FiscalAI reports. Moody’s had a net margin of 29.92% and a return on equity of 63.58%. The business had revenue of $1.89 billion during the quarter, compared to the consensus estimate of $1.87 billion. During the same period in the previous year, the business earned $2.62 earnings per share. The company’s revenue was up 13.0% on a year-over-year basis. Moody’s updated its FY 2026 guidance to 16.400-17.000 EPS.

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

• Moody’s reported a record 2025 with total revenue above $7.7 billion, adjusted operating margin of 51.1% (up 300 bps), and adjusted diluted EPS of $14.94 (up 20%), demonstrating strong profitability and cash generation.
• Ratings activity was exceptionally strong — Moody’s rated $6.6 trillion of debt in 2025 and delivered the busiest Q4 in its history, and MIS expects 2026 revenue to grow in the high single digits with an anticipated ~65% operating margin supported by issuance front‑loading and technology-driven leverage.
• Moody’s Analytics is scaling AI‑enabled, recurring offerings — ARR reached $3.5 billion, recurring revenue represented 97% of Q4 MA revenue, and customers adopting AI solutions show ~97% retention and roughly 2x organic growth versus the rest of the base, driving cross‑sell and deeper workflow embedding.
• Management is pruning non‑core assets (sale of learning solutions closed; regulatory reporting divestiture pending), which will create a ~1–2 percentage‑point headwind to 2026 MA reported growth, while guiding 2026 adjusted EPS of $16.40–$17.00, ~$2 billion of planned buybacks, a 10% dividend increase, and $2.8–$3.0 billion of free cash flow.

Moody’s Stock Up 6.5%

NYSE MCO traded up $27.49 on Wednesday, hitting $450.71. 844,690 shares of the company were exchanged, compared to its average volume of 1,246,397. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 1.70. The company has a market cap of $80.41 billion, a PE ratio of 36.26, a PEG ratio of 1.97 and a beta of 1.44. The stock has a fifty day moving average of $499.16 and a 200-day moving average of $495.11. Moody’s has a 12 month low of $378.71 and a 12 month high of $546.88.

Insider Buying and Selling at Moody’s

In other news, CEO Robert Fauber sold 592 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $516.15, for a total transaction of $305,560.80. Following the transaction, the chief executive officer owned 61,082 shares in the company, valued at approximately $31,527,474.30. This represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.14% of the company’s stock.

Institutional Trading of Moody’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. bought a new position in Moody’s in the second quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Moody’s in the 3rd quarter worth $30,000. Kemnay Advisory Services Inc. bought a new position in shares of Moody’s in the 4th quarter worth $31,000. Wealth Watch Advisors INC bought a new position in shares of Moody’s in the 3rd quarter worth $32,000. Finally, Quarry LP acquired a new stake in Moody’s in the 4th quarter valued at $47,000. 92.11% of the stock is owned by institutional investors.

More Moody’s News

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

• Positive Sentiment: Q4 results beat expectations — Moody’s reported non‑GAAP EPS of $3.64 (above consensus) and revenue of $1.89B, with revenue up ~13% year‑over‑year, underscoring continued top‑line growth and margin expansion. Moody’s Non-GAAP EPS of $3.64 beats by $0.20, revenue of $1.89B beats by $20M
• Positive Sentiment: Management cites technology scale‑up benefits — the company said efforts to scale new technologies are paying off, helping profit and revenue growth and supporting operating leverage. Moody’s Posts Higher Profit, Revenue
• Positive Sentiment: Analyst upgrade adds upside — Bank of America initiated coverage with a “buy” and $550 price target, signaling institutional optimism and potential further buying interest. Finviz coverage note
• Neutral Sentiment: FY‑2026 EPS guidance near consensus — management set a range of $16.40–$17.00 (consensus ~$16.47), which is essentially in line with expectations and removes major downside surprise but isn’t a clear upside catalyst. Press Release
• Neutral Sentiment: Regional expansion announced — Moody’s opened a regional headquarters in Riyadh to deepen Middle East presence, a strategic long‑term growth move but unlikely to meaningfully change near‑term earnings. Moody’s Establishes Regional Headquarters in Saudi Arabia
• Negative Sentiment: Valuation and recent share weakness are headwinds — MCO still trades at an elevated P/E and has seen recent price weakness, which could limit upside despite the beat and upgrade. Analysts and market commentary flag mixed signals on valuation vs. growth. Valuation and momentum analysis

Analysts Set New Price Targets

MCO has been the subject of a number of research reports. Mizuho increased their price target on Moody’s from $539.00 to $550.00 and gave the company a “neutral” rating in a research note on Tuesday, October 28th. Weiss Ratings reiterated a “buy (b)” rating on shares of Moody’s in a research report on Friday, October 31st. Wells Fargo & Company boosted their price target on Moody’s from $620.00 to $660.00 and gave the stock an “overweight” rating in a report on Wednesday, January 14th. JPMorgan Chase & Co. lowered their price objective on Moody’s from $580.00 to $560.00 and set an “overweight” rating for the company in a research note on Thursday, October 23rd. Finally, Wall Street Zen downgraded shares of Moody’s from a “buy” rating to a “hold” rating in a research report on Saturday, January 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $559.81.

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.