Moody's Corporation (MCO) is listed on NYSE and operates in the Financial - Data & Stock Exchanges industry (Financial Services sector).
Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Investors Service and Moody's Analytics. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as and structured finance securities. This segment provides ratings in approximately 140 countries. Its ratings are disseminated through press releases to the public through electronic media, including the internet and real-time information systems used by securities traders and investors. This segment has rated approximately 5,000 non-financial corporates; 3,600 financial institutions; 16,000 public finance issuers; 145 sovereigns; 47 supranational institutions; 459 sub-sovereigns; and 1,000 infrastructure and project finance issuers, as well as 9,100 structured finance deals. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets; and offers subscription based research, data, and analytical products comprising credit ratings, credit research, quantitative credit scores and other analytical tools, economic research and forecasts, business intelligence and company information products, commercial real estate data and analytical tools, ...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 18 |
| Hold | 13 |
| Sell | 1 |
| Strong Sell | 0 |
Moody's Corporation is a global integrated risk assessment firm operating in two main segments: Moody's Investors Service and Moody's Analytics. Moody's Investors Service provides credit ratings and assessment services for various debt obligations, including corporate, financial institution, governmental, and structured finance securities. It operates in approximately 140 countries, offering ratings for a wide range of entities such as non-financial corporates, financial institutions, public finance issuers, sovereigns, supranational institutions, sub-sovereigns, and infrastructure and project finance issuers. Moody's Analytics develops products and services to support risk management for institutional financial market participants. This includes subscription-based research, data, and analytical tools, such as credit ratings, economic forecasts, business intelligence, and company information products. Additionally, it offers commercial real estate data, training services, credentialing, certification programs, and software solutions. The company, originally known as Dun and Bradstreet Company, was founded in 1900 and is headquartered in New York, New York. It changed its name to Moody's Corporation in September 2000.
Over the past three fiscal years, the company has demonstrated robust growth and improving profitability. Revenue consistently increased at a compound annual growth rate (CAGR) of 14.2%, rising from $5.92 billion in 2023 to $7.72 billion in 2025. This growth was accompanied by significant improvements in profitability, as evidenced by the operating margin expanding by 7.2 percentage points from 37.5% to 44.8%, and the net margin increasing by 4.7 percentage points to 31.9%. Earnings per share (EPS) also saw a substantial rise, with a CAGR of 25.1%, reaching $13.67 by 2025. The company's cash generation capabilities strengthened, with operating cash flow (OCF) and free cash flow (FCF) both consistently increasing, achieving CAGRs of 16.1% and 17.0%, respectively. FCF reached $2.58 billion in 2025, reflecting a healthy FCF margin of 33.4%. Despite the increase in net debt from $5.29 billion to $4.97 billion, the company's interest coverage ratio improved significantly to 18.3x, indicating strong earnings relative to interest obligations. The reduction in capex intensity to 4.2% suggests a capital-light model, enhancing return on invested capital (ROIC), which rose to 30.3%. Additionally, the company maintained a stable asset turnover ratio and improved accruals, indicating high earnings quality. The slight decrease in share count by 2.2% through buybacks further amplified per-share gains, benefiting shareholders. Overall, the company's financial performance reflects effective scaling and operational efficiency.
Recent developments for Moody's Corporation (MCO) primarily revolve around institutional trading activity and analyst perspectives. AEGON Asset Management UK Plc recently sold 14,752 shares of Moody's, as reported in their latest SEC filing. Meanwhile, Caprock Group LLC increased its stake in Moody's by 75%, now holding shares valued at approximately $4.675 million. These transactions reflect routine portfolio adjustments rather than significant shifts in company outlook. Additionally, Moody's stock valuation has been a topic of discussion, with a DCF analysis suggesting a worth of $268 per share, indicating potential overvaluation concerns. Furthermore, Moody's is set to present at the Bernstein Strategic Decisions Conference on May 28, 2026, which may provide further insights into its strategic direction. Analyst sentiment includes a focus on Warren Buffett's successor, Greg Abel, and his investment decisions, which could indirectly impact perceptions of Moody's as a holding. Overall, while there are no major earnings or product announcements, the trading activities and analyst discussions provide a glimpse into the current market sentiment surrounding Moody's Corporation.
Moody's Corporation operates within the financial services industry, specifically focusing on credit ratings, research, and risk analysis. The industry is currently experiencing robust demand driven by macro trends such as infrastructure investment, energy transition, and the rise of AI technologies. Regulatory shifts, particularly in digital finance and private credit markets, are also shaping the landscape. Management identifies long-term funding needs tied to infrastructure and technology as key tailwinds, while geopolitical volatility and credit market fluctuations present headwinds. Over the calls, the consistent theme is the structural demand for Moody's services despite market volatility, with a noted increase in private credit and digital finance activities.
Moody's delivered strong financial performance in both quarters, with Q1 2026 showing revenue growth of 8% in both Moody's Investors Service (MIS) and Moody's Analytics (MA). This was driven by strategic initiatives such as embedding intelligence into customer workflows and expanding partnerships with AI and cloud providers. The company achieved a record issuance of over $2 trillion in Q1, led by investment-grade volumes and private credit activity. Management expressed satisfaction with the operational leverage and margin expansion achieved through technology investments and AI efficiencies. Concerns were noted around potential timing impacts due to market volatility, but overall, the narrative remained positive with a focus on long-term structural demand. The Q4 2025 call highlighted a record year with strong issuance and revenue growth, underscoring the company's ability to capitalize on market opportunities.
Moody's strategy focuses on embedding decision-grade intelligence into customer workflows, expanding its data estate, and leveraging AI to enhance product offerings. Investments are directed towards AI-enabled platforms, cloud-based solutions, and expanding capabilities in private credit and digital finance. Management claims competitive advantages in its proprietary data and analytics, which are deeply embedded in customer workflows. Credibility is supported by strong customer retention and strategic partnerships. Risks include execution challenges in integrating AI and potential regulatory scrutiny, particularly in digital finance. Analysts questioned the pace of AI adoption and its impact on revenue growth. While the strategy is promising, challenges in market volatility and execution remain, requiring careful monitoring.
Between the two calls, management delivered on several commitments, including revenue growth targets and margin expansion. The Q1 2026 call confirmed progress in AI partnerships and customer engagement, aligning with earlier strategic priorities. Guidance set in Q4 2025 for high single-digit revenue growth was met, and the company increased its share buyback guidance. However, there was a lack of detailed updates on specific AI adoption metrics, which were emphasized in the earlier call. Overall, management demonstrated consistent execution, but some areas, particularly AI monetization, require further clarity.
- Monitor Moody's ability to sustain high single-digit revenue growth in both MIS and MA, as guided for 2026.
- Track the progress of AI-enabled product adoption and its impact on ARR growth, particularly in Moody's Analytics.
- Evaluate the execution of strategic partnerships with AI and cloud providers, and their contribution to revenue.
- Assess the impact of market volatility on issuance volumes, especially in private credit and digital finance.
- Observe any regulatory developments affecting digital finance and private credit markets, as these could impact Moody's operations.