Moody's Corporation (MCO) announced strong third-quarter 2025 financial results, surpassing analyst expectations for both revenue and earnings. [1, 2] The company reported revenue of $2.01 billion, up 11% year-over-year, and an adjusted EPS of $3.92. [1, 2] Driven by a significant rebound in debt issuance, both the Moody's Investors Service and Moody's Analytics segments posted robust growth. [2, 7] In light of these results, Moody's raised its full-year adjusted EPS guidance to between $14.50 and $14.75. [2] Despite the positive earnings report and upgraded forecast, the company's stock experienced a decline in pre-market trading. [7, 9] Analysts attribute the negative market reaction to persistent concerns over the company's high valuation. [7, 8, 9] The stock's forward earnings multiple is considered elevated compared to its historical averages and competitors, leading investors to weigh the strong performance against the premium share price. [7, 9]
Moody's Beats Q3 Estimates and Raises Guidance, but Valuation Concerns Weigh on Stock
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