Moody’s Corporation (NYSE:MCO) shares climbed on Wednesday after the ratings and analytics firm delivered a strong quarter, driven by broad-based momentum across its business lines.
Investors also focused on management’s upbeat outlook, as demand for decision-support tools and credit-market services held firm.
• Moodys stock is showing upward movement. Why are MCO shares climbing?
Quarterly Metrics
The company reported first-quarter adjusted earnings per share of $4.33, beating the analyst consensus estimate of $4.22.
Quarterly sales of $2.079 billion (up 8% from the prior-year period) outpaced the Street view of $2.082 billion.
Moody’s Analytics revenue rose 8%, led by 7% growth in Decision Solutions, 8% in Research & Insights, and 10% in Data and Information.
Moody’s Investors Service revenue climbed 8%, delivering its strongest quarter on record.
Quarterly operating income increased to $922 million, compared with $846 million a year ago.
Operating margin improved to about 44.3% in the quarter from roughly 44.0% in the year-ago period.
The adjusted operating margin expanded 150 bps to 53.2%.
Cash flow from operations was $939 million, and free cash flow was $844 million.
As of March 31, 2026, Moody’s had $6.4 billion of outstanding debt.
Dividend
On April 20, 2026, the Moody’s Board declared a regular quarterly dividend of $1.03 per share payable on June 5, 2026, to shareholders of record on May 15, 2026.
Buyback
Moody’s raised its share buyback guidance from $2 billion to $2.5 billion.
Moody’s CEO said both Moody’s Investors Service (MIS) and Moody’s Analytics (MA) delivered strong quarterly performance, driven by steady growth and improved efficiency.
MIS generated record revenue of $1.2 billion, supported by more than $2 trillion in rated issuance, and achieved a 67% adjusted operating margin. MA maintained its momentum, achieving 8% annual recurring revenue growth and expanding its adjusted operating margin by 250 basis points.
The CEO added that rising AI adoption is increasing demand for Moody’s data-driven insights in critical decision-making environments.
New CFO
Moody’s named Christina Kosmowski as CEO of Moody’s Analytics, effective June 2026.
Outlook
Moody’s reiterated fiscal 2026 adjusted EPS of $16.40 to $17, versus the $16.65 analyst consensus estimate.
The firm expects fiscal 2026 GAAP EPS of $16 to $16.60 (up from a prior forecast of $15 to $15.60), compared with an analyst estimate of $15.33.
The company targeted a return of ~110% of free cash flow to shareholders.
MCO Price Action: Moody’s Corporation shares are trading higher by 2.47% to $470.96 at publication on Wednesday.
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