The strong beat and raised buyback signal management confidence. Monitor H2 debt issuance volumes given updated macro assumptions (rate hikes now expected, higher inflation) which could temper MIS growth. The narrowed guidance range suggests a clear path to full-year targets.
Price Chart
Executive Summary
Moody's Q2 2026 delivered exceptional results with revenue of $2.185B (+15% YoY) and adjusted diluted EPS of $4.68 (+31% YoY), beating consensus estimates by 10% on EPS and 5% on revenue. Operating leverage drove 440bps adjusted margin expansion to 55.3%, and the company raised its full-year share repurchase guidance to up to $3.0B while narrowing adjusted EPS guidance to $16.50-$17.00.
Key Financial Metrics
Key Facts
- Revenue $2.185B (+15% YoY, +16% organic constant currency)
- Diluted EPS $5.03 (+57% YoY), Adjusted Diluted EPS $4.68 (+31% YoY)
- Operating margin 47.9% (+480bps), Adjusted operating margin 55.3% (+440bps)
- MIS revenue +25% YoY to $1.260B, driven by broad-based issuance strength
- MA ARR +9% YoY to $3.661B, with Decision Solutions ARR +10%
- Year-to-date operating cash flow $1.718B (+32%), free cash flow $1.532B (+34%)
- Raised full-year share repurchase guidance to up to $3.0B (from ~$2.5B)
- Narrowed Adjusted Diluted EPS guidance to $16.50-$17.00 (from $16.40-$17.00)
- Narrowed Diluted EPS guidance to $16.00-$16.50 (from $16.00-$16.60)
Financial Impact
EPS beat consensus by 10% ($4.68 vs $4.25), revenue beat by ~5% ($2.185B vs $2.08B). Adjusted operating margin expanded 440bps to 55.3%. Share repurchase authorization increased by $500M to $3.0B.
Risk Factors
- Macro headwinds: tariff/trade policy uncertainty, higher inflation (2.5%-3.5%), and potential Fed rate hike could slow debt issuance
- Operating cash flow guidance slightly lowered to $3.15-$3.35B (from $3.25-$3.45B)
- Elevated share repurchases reduce equity base but also consume cash reserves
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-049104 |
| Document: mco-20260722.htm | 0001628280-26-049104 |
| Document: 0001628280-26-049104-index-headers.html | 0001628280-26-049104 |
| Document: 0001628280-26-049104-index.html | 0001628280-26-049104 |
| Document: 0001628280-26-049104.txt | 0001628280-26-049104 |
| 8-K Data (Synthetic) | 0001628280-26-049104 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 7w ago | 8-K | $488.42 $474.95 | ▼ −2.76% | ▼ −1.01% | $441.36 (−9.64%) |
Jul 22, 2026 10w ago | 8-K | $489.70 $497.03 | ▲ +1.50% | ▼ −1.40% | $441.36 (−9.87%) |
Jul 17, 2026 11w ago | ANALYST-UPGRADE | $510.86 $484.96 | ▼ −5.07% | ▼ −9.52% | $441.36 (−13.60%) |
Jul 2, 2026 13w ago | Insider Cluster | $490.51 $482.26 | ▼ −1.68% | ▼ −1.27% | $441.36 (−10.02%) |
Jun 2, 2026 17w ago | Insider Cluster | $448.39 $490.51 | ▲ +9.39% | ▲ +10.39% | $441.36 (−1.57%) |
Apr 22, 2026 23w ago | 8-K | $466.72 $434.49 | ▲ +6.91% | ▲ +10.07% | $441.36 (+5.43%) |
Apr 15, 2026 24w ago | 8-K | $446.81 $451.75 | ▲ +1.11% | ▼ −4.94% | $441.36 (−1.22%) |
Apr 1, 2026 26w ago | Insider Cluster | $438.78 $460.11 | ▲ +4.86% | ▼ −4.86% | $441.36 (+0.59%) |
Mar 3, 2026 30w ago | Insider Cluster | $464.30 $436.25 | ▲ +6.04% | ▲ +1.64% | $441.36 (+4.94%) |
US Market Status
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