Moody's Corporation
MCO.US Full Coverage
Last updated:
Volume
52W avg
Day Range
52W High
52W Low
Market Cap
Div Yield
Forward P/E
P/B
Headlines
FY2026 Q2
Moody's posted a standout Q2, with revenue up 15% to $2.2 billion and adjusted diluted EPS rising 31% to $4.68, well above its prior guidance. MIS revenue surged 25% on a 33% jump in rated issuance, while private‑credit‑related transactions grew over 40%. Management left full‑year revenue guidance unchanged but raised its full‑year rated‑issuance outlook to mid‑single‑digit growth, lifted the share‑repurchase ceiling to $3.0 billion and narrowed adjusted EPS guidance to $16.50‑$17.00.
Adjusted Diluted EPS
$4.68
+31.5%
MCO Revenue
$2.185B
+15.1%
MCO Adjusted Operating Margin
55.3%
+440 bps
FY26 Rated Issuance Guidance
↑ Mid-single-digit %
Raised from Low-single-digit %
FY26 Share Repurchase Guidance
Up to $3.0B
Raised from ~$2.5B
What We're Watching
Strategic
Insurance Cloud (IRP) Migration Acceleration
📅
Ongoing
What to Monitor
The pace of customer migration from on-premise solutions following the announcement of a sunset timeline. Monitor for specifics on ARR uplift from these migrations and adoption of new models on the platform.
Why It Matters
This is a major strategic push to accelerate a key monetization pathway for the Insurance business. Success will drive higher-margin, recurring revenue, but the transition carries execution risk, with less than half of customers fully migrated.
Risk
MIS Issuance Mix vs. Revenue Realization
📅
H2 2026
What to Monitor
The divergence between rated issuance volume growth and MIS revenue growth. Specifically, monitor if the mix continues to be dominated by lower-yield data center and frequent FIG issuer transactions.
Why It Matters
This was the central reason for not raising full-year revenue guidance despite a strong issuance forecast. A continued unfavorable mix would cap the segment's upside and pressure its ability to meet high-single-digit revenue growth expectations.
Strategic
Execution of New MA CEO's Priorities
📅
Ongoing
What to Monitor
Tangible actions related to the new CEO's priorities: simplifying offerings, sharpening go-to-market execution, strengthening the data layer, and improving organizational speed. Look for product, pricing, or organizational announcements.
Why It Matters
The new leader has a mandate to accelerate MA's transformation and capture the AI opportunity. Her early execution is critical to MA's ability to maintain high-single-digit ARR growth and achieve its mid- to high-30s margin target by 2027.
Opportunity
Growth in New MIS Mandates (Digital Finance, ILS)
📅
Ongoing
What to Monitor
The conversion of transaction pipelines into rated deals for emerging areas like Digital Finance and Insurance-Linked Securities (ILS). Management noted building pipelines in both areas.
Why It Matters
These initiatives represent new, long-term growth vectors for the ratings franchise. Gaining traction would demonstrate Moody's ability to monetize the evolution of capital markets beyond traditional debt issuance.
Operational
MA Lending Suite Adoption
📅
H2 2026
What to Monitor
ARR growth and customer uplift from the new lending suite packages, particularly as customers migrate from legacy platforms. Management highlighted mid-teens growth for lending in Q2.
Why It Matters
The lending suite is a key growth contributor within MA's Banking segment. Successful upselling to the new AI-enabled platform is a critical proof point for the workflow integration strategy and is essential for the Banking line of business to meet its growth targets.
