Summary
Moody's Corporation (MCO) reported solid financial results for the second quarter and first half of 2025, demonstrating continued revenue growth driven by both its Moody's Analytics (MA) and Moody's Investors Service (MIS) segments. For the quarter, total revenue increased by 4% year-over-year to $1.9 billion, with MA showing a strong 11% increase in external revenue, fueled by demand in KYC, insurance, and banking solutions. MIS revenue remained stable year-over-year, primarily due to mixed performance in its various sub-segments, including a decline in bank loans offset by higher investment-grade issuance. Net income attributable to Moody's increased by 5% to $578 million for the quarter. The company also saw an expansion in its operating margin to 43.1% and its adjusted operating margin to 50.9%, driven by revenue growth and benefits from its restructuring programs. Diluted EPS rose 6% to $3.21. The company continues to manage its capital effectively, returning value to shareholders through dividends and share repurchases, while also investing in strategic growth initiatives.
Financial Highlights
55 data points| Revenue | $1.90B |
| Cost of Revenue | $489.00M |
| Gross Profit | $1.41B |
| SG&A Expenses | $443.00M |
| Operating Expenses | $1.08B |
| Operating Income | $818.00M |
| Net Income | $578.00M |
| EPS (Basic) | $3.22 |
| EPS (Diluted) | $3.21 |
| Shares Outstanding (Basic) | 179.70M |
| Shares Outstanding (Diluted) | 180.20M |
Key Highlights
- 1Total revenue increased by 4% to $1.9 billion for Q2 2025, driven by growth in both segments.
- 2Moody's Analytics (MA) revenue surged by 11% to $888 million, with particular strength in KYC, insurance, and banking solutions.
- 3Moody's Investors Service (MIS) external revenue remained stable at $1.01 billion, reflecting a balance between growth in investment-grade issuance and declines in bank loans.
- 4Net income attributable to Moody's grew 5% to $578 million for the quarter.
- 5Operating margin improved to 43.1%, and Adjusted Operating Margin expanded to 50.9%, showcasing operational efficiency and benefits from restructuring.
- 6Diluted EPS increased by 6% to $3.21 for the quarter.
- 7The company continued its commitment to shareholder returns, with approximately $0.9 billion in remaining share repurchase authority and a quarterly dividend of $0.94 per share.