MOODYS CORP /DE/MCO
MOODYS CORP /DE/ Financial Overview 2021–2025
Moody's Corporation delivered a 51.1% adjusted operating margin in FY2025, showcasing the pricing power inherent in its risk assessment and credit rating businesses. This profitability underscores a clear investment thesis: Moody’s dual-engine model—pairing steady recurring revenue in analytics with highly cash-generative debt ratings—allows the business to weather macroeconomic volatility and consistently drive operational leverage.
The company’s ability to compound value is evident across its full cycle. Total revenue expanded from $6.218 billion in FY2021 to $7.718 billion in FY2025, successfully absorbing a severe credit market contraction in FY2022. This resilience was fueled by the Moody's Analytics segment, which provided an anchor during down years through sustained demand for KYC and insurance offerings. When debt capital markets recovered, the Moody's Investors Service segment capitalized on the issuance volume, delivering a 33% revenue surge in FY2024 and pushing total top-line growth to 20% for that year. By FY2025, broad-based growth across both divisions drove diluted earnings per share up 21% to $13.67.
The market assigns a premium to this consistent profitability and structural advantage. At the close of FY2025, the stock was valued at $510.85, trading at 37.4x earnings.
Recent Developments (Q3 and Q4 2025)
Moody's authorized a $4 billion share repurchase program in the second half of 2025. In Q3 2025, total revenue grew 11% year-over-year to $2,007 million. The adjusted operating margin for the third quarter expanded 500 basis points to 52.9%. Third-quarter diluted earnings per share increased 23% to $3.60. The company incurred $21 million in restructuring charges during the quarter. Moody's elected Lisa P. Sawicki to its Board of Directors, effective March 16, 2026.
Bulls note the $4 billion capital return program and margin expansion confirm an optimized cost structure. Bears caution that the stock is priced at 40.0x earnings as of February 17, 2026, creating valuation risk if debt issuance volumes normalize.
What to watch: execution of the $4 billion buyback program; integration of the new board member.
Rev
$7.09B
FY2024
NI
$2.06B
FY2024
EPS
$11.32
FY2024
OCF
$2.84B
FY2024
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
MOODYS CORP /DE/ 8-K Report, Financial Results (Feb 18, 2026)
Moody's Corporation (MCO) has filed an 8-K report announcing its financial results for the fourth quarter and full year ended December 31, 2025, along with its financial outlook for 2026. This filing provides investors with key performance indicators and future projections from the company. The press release detailing these results is attached as Exhibit 99.1, offering a comprehensive overview of the company's recent financial activities and strategic direction. Investors should pay close attention to the details within the press release to understand the drivers of MCO's performance in 2025 and the assumptions underpinning its 2026 outlook. This includes evaluating revenue growth, profitability, and any segment-specific performance that may influence the company's overall trajectory. The forward-looking statements within the release will be crucial for assessing future investment potential.
MOODYS CORP /DE/ 8-K Report, Executive Changes (Jan 12, 2026)
Moody's Corporation (MCO) announced a significant addition to its Board of Directors, with Ms. Lisa P. Sawicki being elected as a director, effective March 16, 2026. Ms. Sawicki brings extensive experience from her tenure at PricewaterhouseCoopers LLP (PwC), where she held various leadership positions, including Chair of the Global Board and Client Partner. Her expertise in financial services and assurance is expected to be a valuable asset to Moody's. With Ms. Sawicki's appointment, the Board will expand to ten directors. She will also serve on the Audit and Governance & Nominating Committees. Her compensation package includes an annual cash retainer of $120,000 and a restricted stock unit award valued at $150,000, vesting one year after grant. This strategic board expansion aims to leverage Ms. Sawicki's deep industry knowledge to further strengthen Moody's governance and oversight.
MOODYS CORP /DE/ 8-K Report, Executive Changes (Dec 19, 2025)
Moody's Corporation (MCO) filed an 8-K report on December 18, 2025, detailing amendments to its 2001 Key Employees' Stock Incentive Plan (the "2001 Plan") approved by the Board of Directors on December 16, 2025. These amendments aim to enhance plan governance and provide greater flexibility in executive compensation and equity awards. The changes are primarily focused on the definition of "Good Standing," conditions for "Retirement" treatment, and the administration of Restricted Stock Units (RSUs). Key modifications include requiring employees to be in "Good Standing" and adhere to post-termination obligations for retirement treatment, allowing the company to mandate a release of claims as a condition for retirement benefits, and introducing more flexibility in RSU vesting schedules. Additionally, the plan now clarifies that equity treatment upon an employee's death or disability will align with current company practices without needing explicit committee approval, ensuring smoother execution of these provisions. These updates reflect Moody's ongoing efforts to align its compensation structures with best practices and operational needs.
MOODYS CORP /DE/ 8-K Report, Financial Results (Oct 22, 2025)
Moody's Corporation (MCO) has filed an 8-K report on October 22, 2025, to announce its financial results for the third quarter ended September 30, 2025. The filing primarily directs investors to a press release, attached as Exhibit 99.1, which contains the detailed financial performance and outlook for the remainder of 2025. While the specific figures are not detailed within the 8-K itself, this announcement is critical for understanding the company's operational performance, revenue drivers, and any updated guidance that could impact its stock valuation.
MOODYS CORP /DE/ 8-K Report, Bylaw Amendment (Oct 17, 2025)
Moody's Corporation (MCO) has filed an 8-K report detailing amendments to its Amended and Restated By-Laws, effective October 14, 2025. These changes primarily focus on updating the procedural and disclosure requirements for stockholders intending to nominate directors or propose other business at company meetings outside of the standard proxy statement process. Key amendments include a revised timeframe for submitting such notices, expanding the required disclosures from stockholders to include more detailed information about their plans, ownership interests, and compensation arrangements. The company also clarified procedural aspects and added defined terms to enhance clarity and efficiency in stockholder engagement and meeting conduct. These updates are intended to modernize the by-laws and provide greater flexibility while ensuring robust information is available for the Board and other stockholders. Importantly, these amendments do not alter the existing deadlines or requirements for stockholder proposals intended for inclusion in Moody's proxy materials under Rule 14a-8 or for director nominations submitted via proxy access. Investors should note the specific new deadlines for the 2026 Annual Meeting of Stockholders for non-proxy access proposals, which are between December 16, 2025, and January 15, 2026, for notices to be received by the Corporate Secretary.
View all 8-K filings →