# Moody's Corporation (MCO) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/MCO/thesis · /stocks/MCO/memo

## Financial Snapshot

---
ticker: MCO
step: 04
generated: 2026-05-12
source: quick-research
---

### Moody's Corporation (MCO) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Revenue | $5.92B | $7.09B | $7.72B | +8.9% |
| Moody's Analytics | $3.31B | $4.41B | $4.84B | +9.75% |
| Moody's Investors Service | $2.61B | $2.68B | $2.88B | +7.47% |
| Adjusted Operating Margin | ~45% | ~48% | ~50% | +200 bps |
| Adjusted Diluted EPS | $10.42 | $12.42 | $14.94 | +20% |
| GAAP Diluted EPS | $8.79 | $11.18 | $13.50+ | +20%+ |

#### FY2026 Guidance

| Metric | 2026 Guide |
|--------|-----------|
| Revenue Growth | High single-digit % |
| Adjusted EPS | $16.40–17.00 (~+10–14% YoY) |
| Total Debt Issuance Growth | Low single-digit % |
| First Half Issuance | High single-digit % growth (vs. H1 2025) |
| Second Half Issuance | Mid-single-digit % decline (vs. H2 2025) |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$3.0B |
| Free Cash Flow | ~$2.8B |
| Capital Expenditures | ~$0.2B (asset-light) |
| Share Repurchases | ~$1.2B |
| Dividends Paid | ~$0.6B |
| Quarterly Dividend | $0.94 |
| Annual Dividend | $3.76 |
| Dividend Yield | ~0.6% |
| Cash & Marketable Securities | ~$2.5B |
| Total Debt | ~$6.5B (post-RMS + Bureau van Dijk financing) |
| Net Debt / EBITDA | ~1.4x |

#### Q1 2026 Trends

| Metric | Q1 2026 |
|--------|---------|
| EPS Beat | Confirmed |
| Revenue | Beat consensus |
| Private Credit Revenue Growth | +60% (FY25 trajectory) |
| Total Debt Rated (FY25) | $6.6T (busiest Q4 in company history) |

#### Key Ratios (approximate)
- P/E: ~36x (FY26 adjusted EPS midpoint $16.70) | EV/EBITDA: ~25x | FCF Yield: ~2.6%
- Revenue Growth (FY25): +8.9% | FCF Margin: ~36%
- Adjusted Operating Margin: ~50% (industry-best)
- Dividend Yield: ~0.6% | Buyback Yield: ~1.2%
- Net Debt / EBITDA: ~1.4x

#### Growth Profile
FY25 was a strong year — adjusted EPS +20% to $14.94 driven by:
- Moody's Analytics +9.75% on subscription compounding + KYC/Decision Solutions growth.
- Moody's Investors Service +7.47% on ratings cycle recovery; $6.6T of debt rated (busiest Q4 ever).
- Private credit revenue +60% growth.
- Operating margin expanded 200 bps on operating leverage.

The 2026 setup:
- Continued mid-to-high single-digit revenue growth.
- EPS growth of +10–14% driven by margin expansion + buybacks.
- Private credit secular tailwind: AUM >$2T in 2026 → ~$4T by 2030.
- Subscription mix (~63% of revenue) compounding above market growth.

The structural thesis: Moody's is the higher-multiple twin to S&P Global, with more recurring revenue mix (63% vs. SPGI ~50%) but smaller index franchise. Multi-decade compounder.

#### Forward Estimates
FY2026 Guide:
- Revenue: ~$8.3–8.5B (~+8–10%)
- Adjusted EPS: $16.40–17.00 (+10–14%)
- Free Cash Flow: ~$3.0B+

Bull case: Debt issuance cycle accelerates; private credit revenue continues +50%+ growth; Moody's Analytics maintains 10%+ growth; multiple expands to 40x P/E. Bear case: Issuance cycle pauses; regulatory pressure on issuer-paid ratings model; AI commoditizes Moody's Analytics data products; multiple compresses to 30x P/E. Consensus targets ~$540–600 vs. trading ~$480–520 (~10–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/MCO/fundamental

## Navigation

- Overview: /stocks/MCO
- Financials (this page): /stocks/MCO/financials
- Thesis: /stocks/MCO/thesis
- Investment Memo: /stocks/MCO/memo
- Coverage universe: /stocks