10-QPeriod: Q1 FY2026

MOODYS CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 23, 2026For Securities:MCO

Summary

Moody's Corporation reported solid financial results for the first quarter ended March 31, 2026, demonstrating robust revenue growth and improved profitability. Total revenue increased by 8% year-over-year to $2.08 billion, driven by strong performance in both the Moody's Analytics (MA) and Moody's Investors Service (MIS) segments. MA saw an 8% revenue increase, supported by sustained demand for its insurance offerings, KYC and banking solutions, and credit research. MIS also experienced an 8% revenue uplift, primarily due to robust investment-grade issuance in Corporate Finance, driven by significant transactions, and strong activity in Project and Infrastructure Finance. The company's operating income grew by 9% to $922 million, with an operating margin of 44.3%, a slight increase from the prior year. Diluted Earnings Per Share (EPS) rose by 8% to $3.73. The company also highlighted strong Adjusted Operating Margin expansion of 150 basis points to 53.2%, underscoring disciplined cost management and revenue growth. Free Cash Flow also saw a significant increase, up 25% to $844 million, reflecting strong operational performance and effective working capital management.

Financial Highlights

55 data points
Beta

Revenue

$2.08B

74.5% Gross Margin

Net Income

$661.00M

31.8% Net Margin

EPS (Diluted)

$3.73

Total Assets

$14.73B

Cash & Equivalents

$1.47B

Free Cash Flow

$844.00M

Financial Statements
Beta
Revenue$2.08B
Cost of Revenue$531.00M
Gross Profit$1.55B
SG&A Expenses$477.00M
Operating Expenses$1.16B
Operating Income$922.00M
Net Income$661.00M
EPS (Basic)$3.74
EPS (Diluted)$3.73
Shares Outstanding (Basic)176.80M
Shares Outstanding (Diluted)177.30M

Key Highlights

  • 1Total revenue for the first quarter of 2026 increased by 8% to $2.08 billion, compared to $1.92 billion in the same period of 2025.
  • 2Moody's Analytics (MA) segment revenue grew 8% to $926 million, driven by strong demand across its decision solutions, research & insights, and data & information businesses.
  • 3Moody's Investors Service (MIS) segment revenue increased 8% to $1.15 billion, primarily fueled by robust investment-grade issuance and project finance activity.
  • 4Operating income rose 9% to $922 million, resulting in an operating margin of 44.3%.
  • 5Diluted Earnings Per Share (EPS) increased 8% to $3.73 from $3.46 in the prior year.
  • 6Free Cash Flow increased significantly by 25% to $844 million, demonstrating strong cash generation capabilities.
  • 7The company repurchased approximately $1.47 billion of its shares during the quarter, indicating a commitment to returning capital to shareholders.

Frequently Asked Questions

Moody's reported an 8% increase in total revenue for the first quarter ended March 31, 2026, reaching $2.08 billion, up from $1.92 billion in the same period of 2025. This growth was observed across both the Moody's Analytics (MA) and Moody's Investors Service (MIS) segments.

Both segments showed strong performance. Moody's Analytics (MA) revenue increased by 8% to $926 million, driven by demand in insurance, KYC, banking solutions, and credit research. Moody's Investors Service (MIS) revenue also grew by 8% to $1.15 billion, benefiting from robust investment-grade issuance and project finance activity.

Profitability improved, with operating income increasing by 9% to $922 million and the operating margin slightly expanding to 44.3%. Diluted Earnings Per Share (EPS) rose by 8% to $3.73, up from $3.46 in the prior year's quarter.

Moody's demonstrated strong cash flow generation, with Free Cash Flow increasing by 25% to $844 million. The company continues to focus on investing in its business, both organically and through acquisitions, and returning capital to shareholders through dividends and share repurchases, with approximately $2.5 billion remaining under its share repurchase authorization as of March 31, 2026.