01—Abstract
Summary
Summary of the 8-K filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Moody's Corporation reported its third-quarter 2026 financial results, showcasing a 1% increase in revenue to $2.0 billiona, with a 3% organic constant currency increase.
The company demonstrated strong profitability with an operating margin of 44.8%b and an adjusted operating margin of 52.6%. Diluted EPS saw a significant 18% increase, while Adjusted Diluted EPS rose by 6% year-over-year. Strong cash generation was evident with a 21% increase in operating cash flow and a 22% increase in Free Cash Flow year-to-date.
Moody's reaffirmed its full-year 2026 guidance, projecting Diluted EPS between $16.00c and $16.50, and Adjusted Diluted EPS between $16.50 and $17.00. The company also highlighted its commitment to shareholder returns, having returned approximately $3.1 billion year-to-date through share repurchases and dividends. The results indicate a resilient performance in a complex operating environment, with growth in Moody's Analytics (MA) offsetting a slight decline in Moody's Investors Service (MIS) revenue.
02—Key points
Key Highlights
- Q3 2026 revenue of $2.0 billion, up 1% year-over-year (3% organic constant currency).
- Diluted EPS increased 18% to $4.24, and Adjusted Diluted EPS increased 6% to $4.14.
- Year-to-date operating cash flow rose 21% to $2,471 million, and Free Cash Flow increased 22% to $2,200 million.
- Moody's Analytics (MA) revenue grew 3% (8% organic constant currency), with Annualized Recurring Revenue (ARR) up 8%.
- Moody's Investors Service (MIS) revenue declined 1% year-over-year, primarily due to lower Leveraged Finance issuance, though Investment Grade revenue increased 18%.
- Full-year 2026 guidance reaffirmed, with Diluted EPS projected between $16.00-$16.50 and Adjusted Diluted EPS between $16.50-$17.00.
- Approximately $3.1 billion returned to shareholders year-to-date via share repurchases ($2.6 billion) and dividends ($0.5 billion).
03—Questions
Frequently Asked Questions
What were the key drivers of revenue growth in Q3 2026?
Revenue growth was driven by an increase in Moody's Analytics (MA) revenue, which rose 3% (8% on an organic constant currency basis), particularly in areas like Decision Solutions and Data & Information. While Moody's Investors Service (MIS) revenue saw a slight decline of 1%, strong performance in Investment Grade revenue within MIS helped to partially offset this.
How did the company manage profitability despite an 'increasingly complex operating environment'?
Moody's maintained strong profitability with an operating margin of 44.8% and an adjusted operating margin of 52.6%. This was achieved through disciplined execution and cost management, while also making investments to support growth. The increase in Adjusted Diluted EPS by 6% also reflects effective profitability management.
What is the outlook for the remainder of 2026, and what guidance has been reaffirmed?
Moody's reaffirmed its full-year 2026 guidance, expecting Diluted EPS in the range of $16.00 to $16.50 and Adjusted Diluted EPS between $16.50 and $17.00. The company also anticipates revenue to increase in the high-single-digit percent range and operating expenses to increase in the mid-single-digit percent range.
How is Moody's returning capital to shareholders?
The company has demonstrated a strong commitment to returning capital, having returned approximately $3.1 billion to shareholders year-to-date. This includes $2.6 billion in share repurchases and $543 million in dividends. The Board of Directors also declared a regular quarterly dividend of $1.03 per share.
04—Continue