Moody's Q2 Revenue Jumps 15% to $2.185B, Adjusted EPS $4.68 Beats Estimates
MCO sits 17% above its 52-week low of $402.28.
Summary
Moody's Q2 2026 revenue rose 15% to $2.185 billion, with adjusted EPS of $4.68 beating estimates. MIS revenue surged 25% on strong issuance. The company expanded its restructuring program and repurchased $2.165 billion in shares during H1.
Key Events · Earnings and Guidance · MCO
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Revenue Beats on Ratings Strength
Driven by strong corporate finance and project/infrastructure issuance, Q2 revenue of $2.185 billion grew 15% YoY, with MIS up 25% to $1.26 billion.
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Adjusted EPS Tops Expectations
Reflecting operating leverage and a lower share count, adjusted diluted EPS of $4.68 exceeded consensus, up 31% from $3.56 a year ago.
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Restructuring Program Expanded
In July 2026, the Strategic and Operational Efficiency Restructuring Program was expanded, now targeting $300–$350 million in annualized savings, with total pre-tax charges of $285–$330 million.
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Aggressive Share Buybacks
Contributing to EPS growth, Moody's repurchased $2.165 billion of its shares in H1 2026, reducing diluted shares outstanding by 3% YoY.
Analysis · MCO · Trade & Services
A 25% surge in MIS ratings revenue, fueled by robust debt issuance markets, powered Moody's to a strong quarter with 15% overall revenue growth. Adjusted diluted EPS of $4.68 handily beat expectations, while a $181 million gain from divestitures and an expanded restructuring program targeting $300–$350 million in annual savings further shaped the period. Aggressive share repurchases of $2.165 billion in the first half underscore management's confidence in cash generation, though they also reduced shareholders' equity. The results confirm Moody's is benefiting from favorable capital markets activity, but the heavy buyback pace and restructuring charges warrant attention.
At the time of this filing, MCO was trading at $472.61 on NYSE in the Trade & Services sector, with a market capitalization of approximately $82.5B. 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.