Moody's Q2 Revenue Jumps 15%, Buyback Raised to $3B, EPS View Narrowed
MCO sits 23% above its 52-week low of $402.28.
Summary
Moody's reported Q2 2026 revenue of $2.185 billion, up 15% year-over-year, with adjusted diluted EPS of $4.68 beating expectations. The company raised its full-year buyback plan to $3 billion and narrowed its adjusted EPS guidance to $16.50–$17.00.
Key Events · Earnings and Guidance · MCO
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Q2 Revenue Surges 15%
Total revenue reached $2.185 billion, with Moody's Investors Service (MIS) up 25% on broad-based issuance strength and Moody's Analytics (MA) up 4%.
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Adjusted EPS Beats, Up 31%
Adjusted diluted EPS of $4.68 compared to $3.56 a year ago, driven by revenue growth and operating leverage; GAAP diluted EPS was $5.03, up 57%.
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Full-Year Buyback Raised to $3B
Year-to-date repurchases totaled $2.2 billion; management now targets up to $3.0 billion for 2026, up from prior guidance of approximately $2.5 billion.
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2026 Adjusted EPS Guidance Narrowed
Full-year adjusted diluted EPS guidance tightened to $16.50–$17.00 (from $16.40–$17.00), reflecting confidence in the second-half outlook.
Analysis · MCO · Trade & Services
A standout quarter saw revenue climb 15% and adjusted EPS surge 31%, fueled by a 25% leap in the ratings business amid booming debt issuance. Confidence in sustained momentum is evident as the full-year share repurchase target was raised to $3 billion and adjusted EPS guidance narrowed to $16.50–$17.00. The results highlight the operating leverage in Moody's model—adjusted margins expanded 440 basis points—and the capital return boost directly rewards shareholders.
At the time of this filing, MCO was trading at $494.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $85.7B. The 52-week trading range was $402.28 to $546.88. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.