Moody's Corporation reported second quarter 2026 revenue of $2.19 billion, an increase of 15% year-over-year, and Adjusted Diluted EPS of $4.68, up 31%. These results surpassed analyst expectations, driven by a significant recovery in the company's ratings business and strong operating leverage.
Key Highlights
- The Moody's Investors Service (MIS) segment was the primary growth driver, with revenue increasing 25% to $1.26 billion, fueled by a 34% surge in transactional revenue from higher global debt issuance.
- Overall adjusted operating margin expanded significantly by 440 basis points to 55.3%, with the MIS segment's adjusted margin reaching a robust 68.3%.
- The Moody's Analytics (MA) segment reported steady growth, with Annualized Recurring Revenue (ARR) up 9% year-over-year to $3.7 billion.
- The company raised its full-year 2026 share repurchase guidance to up to $3.0 billion and narrowed its Adjusted Diluted EPS forecast to a range of $16.50 to $17.00.