Moody's Reports Record Q1 Results, Boosts Share Repurchase Plan to $2.5 Billion
MCO sits 15% above its 52-week low of $402.28.
Summary
Moody's Corporation announced record first-quarter 2026 financial results, including an 8% revenue increase and 13% adjusted diluted EPS growth, while raising its full-year share repurchase guidance to $2.5 billion.
Key Events · Earnings and Guidance · MCO
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Record Q1 Financial Performance
Reported Q1 2026 revenue of $2.1 billion (up 8%) and Adjusted Diluted EPS of $4.33 (up 13%), driven by strong growth in both MIS and MA segments.
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Increased Share Repurchase Guidance
Raised full-year share repurchase guidance by $500 million to approximately $2.5 billion, demonstrating enhanced capital return to shareholders.
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Updated Full-Year Outlook
Increased full-year Diluted EPS guidance to $16.00-$16.60 and updated non-operating income guidance to $70-$90 million, partly due to an expected gain from a divestiture.
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Strong Cash Flow Generation
Achieved operating cash flow of $939 million (up 24%) and Free Cash Flow of $844 million (up 26%).
Analysis · MCO · Trade & Services
The filing details strong operational performance across both Moody's Investors Service (MIS) and Moody's Analytics (MA) segments, driving significant increases in revenue, adjusted operating margin, and adjusted diluted EPS. The company's decision to increase its full-year share repurchase guidance by $500 million to $2.5 billion signals strong confidence in future cash flow generation and commitment to shareholder returns. Additionally, the updated full-year diluted EPS guidance reflects an improved outlook, partly due to an expected gain from a pending divestiture. This positive financial update, coupled with enhanced capital allocation, is likely to be viewed favorably by investors.
At the time of this filing, MCO was trading at $463.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $81.5B. 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.