Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 25th, 2026

Bank of Nova Scotia reduced its position in Moody’s Corporation (NYSE:MCO – Free Report) by 8.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 81,270 shares of the business services provider’s stock after selling 7,189 shares during the quarter. Bank of Nova Scotia’s holdings in Moody’s were worth $35,456,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Sivia Capital Partners LLC purchased a new stake in Moody’s in the second quarter valued at about $267,000. Federated Hermes Inc. raised its position in shares of Moody’s by 15.5% in the 2nd quarter. Federated Hermes Inc. now owns 10,916 shares of the business services provider’s stock valued at $5,475,000 after purchasing an additional 1,461 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Moody’s by 6.2% in the 2nd quarter. NewEdge Advisors LLC now owns 1,468 shares of the business services provider’s stock valued at $736,000 after purchasing an additional 86 shares during the last quarter. CIBC Asset Management Inc boosted its stake in Moody’s by 3.8% in the 2nd quarter. CIBC Asset Management Inc now owns 25,303 shares of the business services provider’s stock worth $12,692,000 after purchasing an additional 929 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its position in Moody’s by 0.4% during the 2nd quarter. Treasurer of the State of North Carolina now owns 72,615 shares of the business services provider’s stock worth $36,423,000 after purchasing an additional 280 shares during the last quarter. Hedge funds and other institutional investors own 92.11% of the company’s stock.

Analyst Ratings Changes MCO has been the topic of a number of recent analyst reports. Wolfe Research restated an “outperform” rating and set a $535.00 price target on shares of Moody’s in a research note on Thursday, April 23rd. JPMorgan Chase & Co. boosted their price objective on shares of Moody’s from $530.00 to $600.00 and gave the company an “overweight” rating in a report on Monday, July 20th. UBS Group reissued a “neutral” rating and issued a $505.00 target price on shares of Moody’s in a research report on Thursday. BMO Capital Markets raised their target price on Moody’s from $489.00 to $515.00 and gave the stock a “market perform” rating in a research note on Tuesday, July 7th. Finally, Bank of America reiterated a “buy” rating and set a $565.00 price target on shares of Moody’s in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $553.11.

Check Out Our Latest Stock Analysis on MCO

Key Headlines Impacting Moody’s Here are the key news stories impacting Moody’s this week:

Positive Sentiment: Moody’s latest quarterly report topped expectations, with strong revenue growth and raised guidance helping reinforce the company’s earnings momentum. Moodys Corp (MCO) Q2 2026 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance Positive Sentiment: Clear Street reiterated its Buy rating on Moody’s, adding to the view that the company’s business remains fundamentally sound after earnings. Clear Street Sticks to Their Buy Rating for Moody’s (MCO) Positive Sentiment: Multiple commentary pieces highlighted Moody’s strong Q2 performance and reaffirmed bullish views, citing solid fundamentals and continued earnings strength. Moody’s Corporation: Strong Q2, I Reiterate My Buy Rating As Fundamentals Are Still Sound Neutral Sentiment: Moody’s also released its quarterly dividend announcement, which is supportive for income investors but not likely a major near-term stock catalyst. Moody’s Corporation dividend announcement Neutral Sentiment: Several articles focused on valuation, noting that Moody’s may look expensive relative to fair value despite the earnings beat, which could temper upside. Moody’s (MCO) Stock Looks Expensive Relative To Fair Value Negative Sentiment: Investor attention is also on broader concerns about valuation after the earnings beat, with some coverage suggesting the stock’s premium pricing may limit further gains. Moody’s (MCO) Earnings Beat Puts Valuation Back In Focus Insiders Place Their Bets In other news, CEO Robert Fauber sold 1,467 shares of the company’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $453.67, for a total transaction of $665,533.89. Following the completion of the sale, the chief executive officer owned 52,564 shares of the company’s stock, valued at $23,846,709.88. This represents a 2.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Richard G. Steele sold 158 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $453.67, for a total transaction of $71,679.86. Following the completion of the transaction, the senior vice president directly owned 1,985 shares in the company, valued at approximately $900,534.95. This represents a 7.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 3,250 shares of company stock valued at $1,495,098 in the last ninety days. Insiders own 0.14% of the company’s stock.

Moody’s Price Performance Shares of Moody’s stock opened at $471.30 on Friday. The stock has a market capitalization of $82.34 billion, a P/E ratio of 29.89, a PEG ratio of 2.41 and a beta of 1.34. The business has a 50 day simple moving average of $465.04 and a two-hundred day simple moving average of $464.80. Moody’s Corporation has a 12 month low of $402.28 and a 12 month high of $546.88. The company has a debt-to-equity ratio of 2.01, a current ratio of 1.19 and a quick ratio of 1.16.

Moody’s (NYSE:MCO – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $4.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.26 by $0.42. Moody’s had a return on equity of 80.35% and a net margin of 34.25%.The firm had revenue of $2.19 billion for the quarter, compared to analyst estimates of $2.09 billion. During the same period in the previous year, the company posted $3.56 earnings per share. The business’s revenue was up 15.1% on a year-over-year basis. Moody’s has set its FY 2026 guidance at 16.500-17.000 EPS. As a group, analysts predict that Moody’s Corporation will post 16.8 EPS for the current fiscal year.

Moody’s Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 14th will be paid a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 14th. Moody’s’s payout ratio is 29.53%.

About Moody’s (Free Report)

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.

Read More Five stocks we like better than Moody’s AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding MCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Moody’s Corporation (NYSE:MCO – Free Report).

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Key Takeaways Moody's Q2 adjusted earnings per share rose 31% to $4.68, beating the $4.24 consensus estimate.Investors Service revenues jumped 25% to $1.3B, while Analytics revenues rose 4% to $925M.Moody's narrowed 2026 adjusted earnings guidance to $16.50-$17.00 and sees high-single-digit revenue growth. Moody's (MCO - Free Report) reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.

Shares of MCO have lost almost 2% in pre-market trading on broader market weakness despite posting better-than-expected quarterly performance.

The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.

After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $5.03 per share, in the prior-year quarter.

MCO’s Revenues Improve, Costs RiseQuarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year.

Total expenses were $1.14 billion, up 5% year over year.

Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago.

Moody's Strong Quarterly Segment PerformanceMoody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based impressive performance across all lines of business.

Moody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information.

MCO’s Solid Balance SheetAs of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $1.51 billion as of Dec. 31, 2025.

The company had $6.38 billion in outstanding long-term debt.

Moody's Share Repurchase UpdateIn the first half of 2026, MCO repurchased $2.2 billion worth of shares.

MCO’s 2026 GuidanceMoody’s expects adjusted earnings in the range of $16.50-$17.00 per share, narrower than the previous guidance of $16.40-$17.00.

Moody’s projects revenues to increase in the high-single-digit percent range.

Operating expenses are expected to be in the mid-single-digit range.

Our Take on MCOMoody’s remains well-positioned for growth, driven by a solid market position, strength in diverse operations and strategic acquisitions. Elevated operating expenses and geopolitical and macroeconomic concerns are likely to hurt its financials.
 

Currently, Moody’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance & Expectations of MCO’s PeersAccenture plc (ACN - Free Report) reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.

ACN’s revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency. Managed services, EMEA and communications, media, and technology aided top-line growth.

S&P Global Inc. (SPGI - Free Report) is scheduled to report first-quarter 2026 results on July 28.

Over the past seven days, the Zacks Consensus Estimate for S&P Global’s quarterly earnings has been revised lower to $4.49. The estimated figure indicates 1.4% growth from the prior-year quarter.

As Warren Buffett Nears His Exit, Berkshire's Amassed Record CashMoody's NYSE: MCO reported what President and CEO Rob Fauber called a “standout second quarter,” with broad-based growth across its ratings and analytics businesses and higher select full-year guidance metrics.

On the company’s second-quarter 2026 earnings call, Fauber said enterprise revenue rose 15%, adjusted operating income increased 25%, adjusted operating margin expanded 440 basis points to 55.3%, and adjusted diluted earnings per share grew 31% to $4.68.

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These ETFs Provide Easy Exposure to Growing International Markets“I think what's most encouraging is not just the strength of the quarter, but how broad-based it was,” Fauber said.

Moody’s raised its expectations for rated issuance growth to the mid-single-digit percent range for the full year and narrowed its adjusted diluted EPS guidance to $16.50 to $17.00, increasing the midpoint to $16.75. The company also raised full-year share repurchase guidance to up to $3 billion.

Ratings Business Benefits From Strong Issuance Your Comprehensive Guide to Investing in Bank StocksMoody’s Investors Service delivered 25% revenue growth in the quarter, supported by what executives described as broad-based strength across asset classes. Transaction revenue rose 34%, and Moody’s rated more than $2 trillion of debt for the second consecutive quarter. Adjusted operating margin in MIS expanded 410 basis points from a year earlier to 68.3%.

Fauber said issuance growth was supported by several “funding deep currents,” including refinancing, AI-related investment, private credit, digital finance, energy transition and emerging markets. He highlighted a roughly $4 billion financing for Beacon Point DC, a 350 megawatt hyperscale data center campus developed by Hut 8, as an example of AI-related capital formation.

“AI is becoming one of the largest capital formation stories in the global economy,” Fauber said, adding that financing needs extend beyond data centers into power, infrastructure and other sectors.

Fauber said hyperscalers have already exceeded Moody’s 2026 issuance forecast and have issued more debt this year than in the prior three years combined. He also said that even excluding AI data center and hyperscaler activity, issuance grew double digits year to date.

CFO Noémie Heuland said rated issuance was up 33% year over year in the quarter and 20% year to date. She said results were not driven by a single market dynamic and that revenue growth outpaced issuance growth in several areas because of favorable transaction mix and larger, more complex mandates.

Recurring revenue in MIS increased 6% to $369 million, supported by pricing initiatives, new mandates and growth in monitored credit. Heuland said first-time mandates increased by about 45% and are on pace for the company’s full-year expectation of 750 to 850.

Analytics ARR Grows as Moody’s Emphasizes Workflow Integration Moody’s Analytics continued to grow recurring revenue, with annualized recurring revenue reaching approximately $3.7 billion, up nearly 9% from the prior year. Trailing 12-month retention remained at 95%. Adjusted operating margin in the segment expanded 150 basis points to 33.6%.

Heuland said Moody’s Analytics revenue increased 4% as reported, or 8% on an organic constant currency basis, following recent divestitures that closed in the second quarter. Recurring revenue grew 7% as reported, or 9% on an organic constant currency basis, and represented 99% of Moody’s Analytics revenue. Transactional revenue declined 72% year over year to about $10 million, which she said was consistent with deliberate portfolio repositioning.

Decision Solutions remained the primary growth engine in Moody’s Analytics, accounting for 44% of total ARR and growing 10%. Within that business, KYC ARR grew 13%, banking ARR grew 10%, insurance ARR grew 9%, Research and Insights ARR grew 6%, and Data and Information ARR grew 8%.

Fauber said the analytics business is focused on embedding “trusted decision-grade intelligence” into lending, underwriting, compliance and other workflows. He pointed to integrations with Amazon and Microsoft, including bringing Moody’s Connected Intelligence into Amazon Quick and launching an AI skill on Microsoft 365 Copilot Cowork.

Moody’s also said it now has more than 100 MCP and Smart API connections being used or trialed by customers. In response to an analyst question, Fauber said early demand is being driven by AI-ready research, entity data, news, economic data and credit models.

Company Highlights AI, Insurance and Banking Use Cases Fauber emphasized the role of artificial intelligence both as a driver of capital markets activity and as a component of Moody’s product strategy. He said Moody’s has more than 630 million entities in its company data estate and that proprietary ownership linkages remain one of its most heavily used data sets in KYC and across the company.

In compliance, Fauber said Moody’s AI-powered screening solutions are helping customers reduce false positive alerts by approximately 50%. He also cited a competitive win in EMEA with a Global Fortune 500 home appliance maker, where Moody’s displaced an incumbent by combining company data, credit models and intelligence screening for third-party risk management.

In insurance, Moody’s is migrating customers from on-premise modeling products to its cloud-based Intelligent Risk Platform. Fauber said a top-three U.S. auto and property insurer expanded ARR with Moody’s by nearly 60%, reflecting demand for geospatial AI integration into property underwriting and broader adoption across personal and business lines.

In banking, Fauber said Moody’s moved from proof of concept to production with a top-three Southeast Asian bank on an AI-enabled early warning solution across 19 countries, producing 20% ARR growth with that customer. He also described an expansion with a major regional bank in the Northwestern U.S. that lifted ARR by 8%.

Guidance Holds Despite Strong First Half Heuland said Moody’s is maintaining high-single-digit revenue guidance for MIS and high-single-digit ARR growth guidance for Moody’s Analytics, even after raising the issuance outlook. She said the higher issuance expectation is concentrated in project and infrastructure finance and banking, including more data center activity and frequent banking issuers, which can carry lower average revenue yields.

“The increase in volume doesn't translate one-on-one into incremental revenue,” Heuland said during the question-and-answer session.

For MIS, the company expects low-single-digit revenue growth in the third quarter as market activity slows through the summer, with fourth-quarter revenue roughly flat versus the prior year. For Moody’s Analytics, Heuland said margin expansion remains on track, with full-year adjusted operating margin guidance of 34% to 35%.

Moody’s also expanded its restructuring program envelope by $100 million and extended the program through year-end 2027. Heuland said the full program is expected to result in annualized savings of $300 million to $350 million when completed.

Free cash flow was $688 million in the quarter, up 47% year over year. Moody’s adjusted full-year free cash flow guidance to $2.7 billion to $2.9 billion, reflecting working capital expectations and restructuring costs. Heuland said the company is on track to return more than 130% of free cash flow to shareholders this year, supported by proceeds from recent portfolio actions.

Executives Cite Constructive Markets but Note Risks Asked about potential upside and downside for issuance in the second half, Fauber said stronger M&A activity, continued hyperscaler and data center issuance, controlled inflation and possible rate cuts could support further financing activity. He also noted that high-yield spreads remain tight by historical averages and that Moody’s speculative-grade default rate outlook continues to decline.

At the same time, Fauber said headline risks remain, including possible “risk-off” windows, energy flow disruptions, inflation pressure and deferred M&A. He also noted that the second half of 2025 created a difficult comparison because it was “very robust.”

“Net-net, I think we have a very constructive environment heading into the second half of the year,” Fauber said.

About Moody's (NYSE:MCO)Moody's Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody's is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody's operates primarily through two complementary businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Moody's (MCO - Free Report) came out with quarterly earnings of $4.68 per share, beating the Zacks Consensus Estimate of $4.24 per share. This compares to earnings of $3.56 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.38%. A quarter ago, it was expected that this credit ratings agency would post earnings of $4.25 per share when it actually produced earnings of $4.33, delivering a surprise of +1.88%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Moody's, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $2.19 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.43%. This compares to year-ago revenues of $1.9 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Moody's shares have lost about 3.9% since the beginning of the year versus the S&P 500's gain of 9.7%.

What's Next for Moody's?While Moody's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Moody's was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.35 on $2.09 billion in revenues for the coming quarter and $16.73 on $8.26 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, HIVE Digital Technologies (HIVE - Free Report) , is yet to report results for the quarter ended June 2026.

This crypto currency mining company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -233.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

HIVE Digital Technologies' revenues are expected to be $80.19 million, up 75.8% from the year-ago quarter.

Key Takeaways Moody's Q2 results may benefit from strong investment-grade and high-yield bond issuance.MCO's Corporate Finance revenues are expected to rise 16% y/y to $594 million.Moody's Analytics revenues are projected to grow 4.8%, while MIS revenues are expected to increase 13.4%. Moody's (MCO - Free Report) is scheduled to announce second-quarter 2026 results on July 22, before the opening bell. The company’s Corporate Finance line, the largest revenue contributor at the Moody's Investors Service (“MIS”) division, is expected to have witnessed robust revenue growth in the to-be-reported quarter.

The company is expected to have benefited from robust investment-grade bond issuance during the second quarter, driven by issuers taking advantage of favorable funding conditions and continued AI-related capital spending by large technology companies. Healthy high-yield bond issuance and a pickup in merger and acquisition financing activities are also likely to have supported ratings demand.

While leveraged loan issuance remained relatively subdued, the strength in investment-grade and high-yield debt issuance is expected to have more than offset this weakness. The Zacks Consensus Estimate for revenues in the Corporate Finance line for the second quarter is pegged at $594 million, indicating a 16% rise from the prior-year quarter.

Coming to Structured Finance, Moody’s is expected to have benefited from robust collateralized debt obligation (CLO) issuance and healthy asset-backed securities (ABS) volumes, supported by resilient leveraged loan activity and steady consumer securitizations. Although commercial mortgage-backed securities (CMBS) issuance remained weak due to elevated interest rates and persistent commercial real estate headwinds, strength in CLO and ABS is likely to have more than offset the softness. As such, the Zacks Consensus Estimate for Structured Finance revenues is pegged at $146 million, indicating 8.1% year-over-year growth.

The consensus estimate for revenues from the Financial Institutions business line of $212 million suggests a year-over-year increase of 11%. The Zacks Consensus Estimate for Public, Project and Infrastructure Finance business revenues of $189 million implies a 16.7% rise.

The Zacks Consensus Estimate for total revenues in the MIS division of $1.20 billion implies a 13.4% year-over-year rise.

Other Factors to Influence MCO’s Q2 EarningsMoody's Analytics (“MA”) Division: With the demand for analytics rising, revenues from all units at the MA division are expected to have increased in the second quarter. The company’s efforts to strengthen the division’s profitability through inorganic growth strategies are anticipated to have offered support. Thus, the division’s overall revenues are likely to have risen in the to-be-reported quarter.

The consensus estimate for the MA division’s quarterly revenues is pegged at $934 million, indicating 4.8% growth from the prior-year quarter.

Expenses: Given Moody’s inorganic growth efforts, costs related to acquisitions and restructuring are expected to have increased in the to-be-reported quarter, resulting in an increase in total expenses.

Earnings Whispers for Moody’sAccording to our proven model, the chances of MCO beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Moody’s is +1.36%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Earnings & Sales Expectations for MCOThe Zacks Consensus Estimate for earnings is pegged at $4.23, which has been unchanged over the past seven days. The figure indicates an 18.8% rise from the year-ago reported number.

The consensus estimate for sales of $2.09 billion suggests a 10% year-over-year rise.

Performance & Expectations of MCO’s PeersAccenture plc (ACN - Free Report) reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.

ACN’s revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency. Managed services, EMEA and communications, media, and technology aided top-line growth. New bookings totaled $19.32 billion, down 2% year over year in U.S. dollars and 3% in local currency.

S&P Global Inc. (SPGI - Free Report) is scheduled to report second-quarter 2026 results on July 28.

Over the past seven days, the Zacks Consensus Estimate for S&P Global’s quarterly earnings has been revised lower to $4.88. The estimated figure indicates 10.2% growth from the prior-year quarter’s actual.

Posted by Defense World Staff on Jul 20th, 2026

Cantillon Capital Management LLC lowered its stake in shares of Moody’s Corporation (NYSE:MCO – Free Report) by 11.9% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 392,513 shares of the business services provider’s stock after selling 52,887 shares during the period. Cantillon Capital Management LLC owned approximately 0.22% of Moody’s worth $171,234,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently modified their holdings of the company. Newbridge Financial Services Group Inc. bought a new position in Moody’s during the 2nd quarter worth approximately $25,000. Birchwood Financial Partners Inc. bought a new stake in Moody’s in the fourth quarter valued at approximately $26,000. Nalls Sherbakoff Group LLC bought a new stake in Moody’s in the fourth quarter valued at approximately $27,000. Ares Financial Consulting LLC acquired a new stake in Moody’s in the fourth quarter worth $29,000. Finally, Whipplewood Advisors LLC boosted its position in shares of Moody’s by 1,866.7% during the first quarter. Whipplewood Advisors LLC now owns 59 shares of the business services provider’s stock worth $26,000 after purchasing an additional 56 shares in the last quarter. 92.11% of the stock is owned by institutional investors.

Insider Buying and Selling In other Moody’s news, SVP Richard G. Steele sold 158 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $453.67, for a total transaction of $71,679.86. Following the completion of the transaction, the senior vice president owned 1,985 shares of the company’s stock, valued at $900,534.95. This represents a 7.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Fauber sold 1,467 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $453.67, for a total transaction of $665,533.89. Following the transaction, the chief executive officer directly owned 52,564 shares of the company’s stock, valued at $23,846,709.88. This represents a 2.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 3,250 shares of company stock worth $1,495,098. 0.14% of the stock is owned by insiders.

Analyst Ratings Changes Several equities analysts have recently issued reports on MCO shares. Weiss Ratings raised shares of Moody’s from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday. Morgan Stanley raised their price objective on Moody’s from $491.00 to $496.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 7th. Mizuho reduced their target price on Moody’s from $524.00 to $521.00 and set a “neutral” rating on the stock in a report on Tuesday, April 28th. Bank of America reissued a “buy” rating and issued a $565.00 target price on shares of Moody’s in a research note on Wednesday, April 22nd. Finally, BMO Capital Markets increased their price target on Moody’s from $489.00 to $515.00 and gave the stock a “market perform” rating in a report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $548.47.

Check Out Our Latest Report on Moody’s

Moody’s Price Performance Shares of NYSE MCO opened at $511.14 on Monday. The company has a fifty day moving average price of $460.53 and a 200 day moving average price of $465.32. The firm has a market cap of $89.30 billion, a PE ratio of 36.64, a PEG ratio of 2.62 and a beta of 1.34. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 2.03. Moody’s Corporation has a 1-year low of $402.28 and a 1-year high of $546.88.

Moody’s (NYSE:MCO – Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $4.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.22 by $0.11. The firm had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.11 billion. Moody’s had a return on equity of 70.97% and a net margin of 31.69%.The company’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same quarter last year, the business posted $3.83 EPS. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. Research analysts predict that Moody’s Corporation will post 16.71 earnings per share for the current fiscal year.

Moody’s Profile (Free Report)

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.

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NEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) will release its second quarter 2026 results before the start of NYSE trading on Wednesday, July 22, 2026. A copy of the earnings release and supplemental presentation slides will be posted on Moody's Investor Relations website, ir.moodys.com. Moody's Corporation invites you to participate in a teleconference with Rob Fauber President, and Chief Executive Officer, and Noémie Heuland, Chief Financial Officer, to discuss its second quarte.

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Launching today on Microsoft 365 Copilot Cowork, with availability expanding across compatible AI platforms

NEW YORK--(BUSINESS WIRE)--Moody’s Corporation (NYSE: MCO) today announced the release of its first set of AI skills – purpose-built, platform-agnostic instruction kits that encode Moody’s analytical frameworks and connect AI agents to its decision-grade intelligence. Available across compatible AI platforms beginning with Microsoft 365 Copilot Cowork, Moody’s skills enable customers to execute complex analytical workflows through a single natural-language request, with outputs grounded in Moody’s proprietary ratings, research, and risk intelligence.

“Moody’s is among the first financial data providers to deliver a full library of skills on an open standard, and today’s launch is just the beginning,” said Cristina Pieretti, Head of Digital Content and Innovation at Moody’s. “AI platforms are becoming the interface for financial decision-making, and the next phase of adoption will be defined by execution. Skills are how we encode Moody’s expertise into that execution layer.”

Skills are emerging as the standard for how AI agents execute specialist work. By publishing its analytical frameworks as skills that run on the platforms where market participants already build and operate, Moody’s is embedding its decision-grade intelligence at the center of how financial analysis is executed across the industry.

Moody’s first wave of skills covers high-priority financial workflows where Moody’s expertise is most concentrated:

Earnings Call Summary – Summarizes earnings call transcripts, covering revenue trends, pricing dynamics, consumer health, tariff exposure, and more. Peer Analysis – Produces an investor-grade comparison across leverage, profitability, ESG, credit quality, and more. Public Information Book – Builds a comprehensive dossier on a single entity, spanning financials, governance, competitive landscape, and risk profile. Rating Pitch – Generates a structured pitch deck covering sector context, rating history, and peer positioning. Sector Analysis – Combines Moody’s proprietary research with live market intelligence to deliver a full sector-level outlook. Each skill encodes analytical steps and quality standards to produce outputs that are consistent, sourced, and defensible for high-stakes decision-making in regulated environments. A skill defines how the work is done; Moody's Model Context Protocol (MCP) servers connect it to the data it runs on. MCP is the open standard that lets an AI agent draw directly on Moody's ratings, research, and risk intelligence, so the outputs are grounded in proprietary data rather than general-purpose web content.

A skill teaches an AI agent how to perform a task to a defined standard, captured in a simple, shareable instruction file. Moody's skills are built on the open SKILL.md format, which originated with Anthropic and has since been adopted by platforms like OpenAI, Microsoft, Google, and Amazon. Because the standard is open, the institutional knowledge encoded in each skill is a durable, portable asset rather than a capability locked to one provider, built once and able to run on any compatible platform.

Moody's plans to expand its library of skills to include credit analysis, lead generation, third-party due diligence, and insurance underwriting – extending its analytical frameworks into more of the high-stakes workflows where financial professionals operate. Each new skill will follow the same open, platform-agnostic standard, ensuring the institutional knowledge remains a durable, portable asset across compatible AI platforms.

To learn more, visit https://www.moodys.com/web/en/us/creditview/blog/moodys-skills.html

About Moody’s Corporation

In a world shaped by increasingly interconnected risks, Moody's (NYSE: MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information in this document are made as of the date hereof, and Moody’s undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. Factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of Moody’s annual report on Form 10-K for the year ended December 31, 2025, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition.

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NEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) today announced that its connected intelligence is now available in Amazon Quick – a personalized, proactive AI assistant – through a dedicated Model Context Protocol (MCP) server. The integration gives customers operating in Amazon Web Services (AWS) direct access to ratings and research from Moody's Ratings, as well as Moody's curated data on more than 600 million public and private entities, including firmographics, ownership, financ.

Warren Buffett stepped down as CEO of Berkshire Hathaway on December 31, 2025, after six decades leading the conglomerate he transformed from a struggling textile mill into a $1 trillion empire. The “Oracle of Omaha” left his successor, Greg Abel, with a very concentrated portfolio: almost 65% of Berkshire’s $381 billion portfolio is invested in just six stocks. Abel, who has served as vice chair overseeing non-insurance operations, officially took over as CEO on January 1, 2026. At 95 years old, Buffett isn’t fully retiring—he will remain chair of the board and plans to continue coming to the Omaha headquarters as much as before. However, he has stated he will be “going quiet” and leaving all decision-making to Abel. While that is likely the case, it’s a solid bet that four dividend stocks Buffett loves will never be sold.

In his shareholder letters and statements over the years, Buffett has pointed to a handful of holdings as permanent or near-permanent parts of the portfolio. Abel often reiterates these. These are positions that will likely be in the Berkshire Hathaway lineup long after Buffett has gone to the great stock market in the sky. All four are perfect ideas for those seeking to emulate the Berkshire Hathaway portfolio and investment strategy. Here are the qualities that these forever stocks share, and all are rated Buy at the top Wall Street firms we cover:

Durable competitive advantages (moats) Simple, understandable businesses Shareholder-friendly management Ability to thrive across economic cycles  Why do we cover Berkshire Hathaway stocks?

Few investors have the results and reputation that Buffett has garnered over the past 60 years. Though he has stepped away from the CEO chair, his impact and investment guidelines are likely to remain in place long after he is gone. While investing has evolved since Buffett took control of Berkshire Hathaway in 1965, buying good companies with products and services recognized worldwide and paying dividends will always remain a timeless approach and never go out of style.

American Express American Express (NYSE: AXP | AXP Price Prediction) is an American bank holding company and multinational financial services corporation specializing in payment cards. This stock has performed well over the past year, offering a dividend yield of 1.07%, and has been part of the Berkshire portfolio since 1993. The company offers products and services to customers worldwide, including consumers, small businesses, mid-sized companies, and large corporations.

Its segments include:

U.S. Consumer Services, which offers travel and lifestyle services, as well as banking and non-card financing products. Commercial Services offers payment, expense management, banking, and non-card financing products. International Card Services provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. Global Merchant and Network Services operates a payments network that processes and settles card transactions, acquires merchants, and provides multichannel marketing programs, capabilities, services, and data analytics. Berkshire Hathaway owns 151,610,700 shares, or 22.1% of American Express’s float, and 14.7% of the portfolio.

Truist Financial has a Buy rating with a $360 target price.

Coca-Cola Coca-Cola (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands, and it pays a dependable 2.66% dividend. Berkshire Hathaway owns 400 million shares, which is 9.3% of the float and 9.9% of the portfolio, and has held them since 1988.

With a 63-year streak of dividend increases and a business model built on recurring consumption, Coca-Cola combines defensive characteristics with exposure to emerging market growth. Organic revenue rose 5% in 2025, and the company anticipates 4% to 5% growth in 2026, with analysts projecting adjusted EPS growth of 7% to 8%.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

Diet Coke Coca-Cola Light Coca-Cola Zero Sugar Caffeine-free Diet Coke Cherry Coke Fanta Orange Fanta Zero Orange Fanta Zero Sugar Fanta Apple Sprite Sprite Zero Sugar Simply Orange Simply Apple Simply Grapefruit Fresca Schweppes Dasani Fuze Tea Glacéau Smartwater Glacéau Vitaminwater Gold Peak Ice Dew Powerade Topo Chico Minute Maid Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of over 1.9 billion servings per day. The company also owns 16% of Monster Beverage (NASDAQ: MNST), which continues to deliver strong financial results.

Jefferies has a Buy rating and a $90 target price.

Moody’s Moody’s (NYSE: MCO) is a leading global provider of credit ratings, research, and risk analysis. While it isn’t one of Buffett’s more well-known stocks, he first bought shares in 2000, and the stock pays a slight 0.84% dividend. This integrated risk assessment firm operates in two segments.

The Moody’s Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. It also offers:

Credit Research Credit models and analytics Economics data and models Structured finance solutions Data sets on companies and securities SaaS solutions supporting banking and insurance The Moody’s Investors Service segment publishes credit ratings. It provides assessment services for various debt obligations, programs, and facilities, and for entities that issue such obligations, including corporate, financial institution, and governmental obligations, as well as structured finance securities.

Evercore ISI has an Outperform rating with a $610 price objective.

Occidental Petroleum After years of building this position, Buffett and Berkshire Hathaway are finally in the money on this company, which pays a 1.68% dividend. Occidental Petroleum (NYSE: OXY) is an international energy company with assets primarily in the United States, the Middle East, and North Africa. The company is an oil and gas producer in the United States, including the Permian and DJ basins and the offshore Gulf of America.

Berkshire Hathaway has a large position of 264,941,431 shares, representing 26.7% of the float and 5.6% of the portfolio.

Occidental’s oil and gas segment explores for, develops, and produces oil (including condensate), natural gas liquids (NGLs), and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (including condensate), NGLs, natural gas, carbon dioxide (CO2), and power. This segment provides flow assurance, maximizes the value of its oil and gas, and optimizes the company’s transportation and storage capacity. It also invests in entities that conduct similar activities, including low-carbon venture businesses.

A notable recent development was Occidental’s decision to sell its OxyChem subsidiary to Berkshire Hathaway, with the bulk of the proceeds expected to strengthen the company’s balance sheet and further concentrate its business on oil and gas. The move was especially interesting because Buffett had reportedly long been interested in OxyChem, and Berkshire now owns the business outright. Berkshire Hathaway completed its purchase of OxyChem on January 2, 2026, providing Occidental with $9.7 billion in cash to reduce debt and sharpen its focus on energy.

Mizuho has an Overweight rating and a $72 price objective.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Moody's (MCO - Free Report) Moody’s Corporation is a leading provider of credit ratings, research, data & analytical tools, software solutions & related risk management services, quantitative credit assessment services, credit training services and credit process software to banks and other financial institutions.

MCO is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MCO has a Growth Style Score of B, forecasting year-over-year earnings growth of 11.7% for the current fiscal year.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $16.69 per share. MCO boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MCO should be on investors' short list.

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Futu Holdings Limited Sponsored ADR (FUTU - Free Report) or Moody's (MCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #1 (Strong Buy), while Moody's has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FUTU has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

FUTU currently has a forward P/E ratio of 13.16, while MCO has a forward P/E of 27.24. We also note that FUTU has a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MCO currently has a PEG ratio of 2.45.

Another notable valuation metric for FUTU is its P/B ratio of 4.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MCO has a P/B of 25.27.

These metrics, and several others, help FUTU earn a Value grade of B, while MCO has been given a Value grade of D.

FUTU sticks out from MCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that FUTU is the better option right now.

Moody's Corporation's ordinary shares have underperformed YTD, but I view AI disruption fears as overstated and see recent weakness as a buying opportunity. The analytics segment's core value lies in proprietary data, expert insights, and regulatory compliance, which AI tools cannot easily replicate or replace. The Investor Services segment has shown robust growth. Tight credit spreads and relatively low real borrowing rates might sustain issuances for an extended period.

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NEW YORK--(BUSINESS WIRE)--Moody’s Corporation (NYSE: MCO) announced today that Rob Fauber, President and Chief Executive Officer, will speak at the Bernstein Strategic Decisions Conference on Thursday May 28, 2026. The presentation will begin at approximately 4:30 p.m. EDT and will be webcast live. The webcast will be accessible at Moody’s Investor Relations website, ir.moodys.com.

This event is conducted in compliance with Regulation FD. Senior management may use the content made available for this presentation during subsequent meetings with analysts and investors.

ABOUT MOODY'S

In a world shaped by increasingly interconnected risks, Moody’s (NYSE:MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody’s gives customers the comprehensive perspective needed to act with confidence and thrive.

More News From Moody’s Corporation Investor Relations

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It has been about a month since the last earnings report for Moody's (MCO - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Moody's due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Moody's Corporation before we dive into how investors and analysts have reacted as of late.

Moody’s Q1 Earnings Beat on Rising Analytics Demand & Higher IssuancesMoody's reported first-quarter 2026 adjusted earnings of $4.33 per share, which outpaced the Zacks Consensus Estimate of $4.25. The bottom line grew 13% from the year-ago quarter.

The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses posed a headwind.

After considering certain non-recurring items, net income attributable to Moody's was $661 million, or $3.73 per share, up from $625 million, or $3.46 per share, in the prior-year quarter.

Revenues Improve, Costs RiseQuarterly revenues were $2.08 billion, which surpassed the Zacks Consensus Estimate of $2.07 billion. The top line rose 8% year over year.

Total expenses were $1.16 billion, up 7% year over year.

Adjusted operating income of $1.1 billion rose 11% year over year. The adjusted operating margin was 53.2%, up from 51.7% a year ago.

Strong Quarterly Segment PerformanceMoody’s Investors Service revenues increased 8% year over year to $1.15 billion. The rise was driven by strength in Corporate Finance, Financial Institutions, and Public, Project and Infrastructure Finance revenues, partially offset by lower revenues at Structured Finance.

Moody’s Analytics revenues rose 8% year over year to $928 million. The increase was driven by 7% growth in Decision Solutions, an 8% rise in Research and Insights, and a 10% jump in Data & Information.

Solid Balance SheetAs of March 31, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.51 billion, down from $2.45 billion as of Dec. 31, 2025.

The company had $6.39 billion in outstanding long-term debt.

Share Repurchase UpdateIn the quarter, MCO repurchased 1.5 million shares.

2026 GuidanceMoody’s expects adjusted earnings in the range of $16.40-$17.00 per share. GAAP earnings are projected to be the band of $16.00-$16.60 per share, up from the prior target of $15.00-$15.60 per share.

Moody’s projects revenues to increase in the high-single-digit percent range.

Operating expenses are expected to be in the mid-single-digit range. Further, non-operating income is projected to be between $70 million and $90 million. Previously, the company expected non-operating expenses of $180-$200 million.

Net interest expenses are estimated to be $220-$240 million, higher than the prior target range of $210-$230 million.

The adjusted operating margin is expected to be 52-53%, while the operating margin is likely to be approximately 45%.

Moody’s expects the cash flow from operations to be $3.25-$3.45 billion. The free cash flow is projected to be in the $2.80-$3 billion range.

The effective tax rate is projected to be 23-25%.

2026 Segment GuidanceMIS segment revenues are expected to increase in the high-single-digit range. The adjusted operating margin is expected to be roughly 65%.

Coming to the MA segment, Moody’s anticipates revenues to rise in the mid-single-digit range, while Annualized Recurring Revenue (ARR) is expected to increase in the high-single-digit range. Further, an adjusted operating margin is expected to be 34-35%.

Strategic and Operational Efficiency Restructuring Program In December 2024, Moody’s CEO approved a Strategic and Operational Efficiency Restructuring Program aimed at improving efficiency and focusing on growth areas. The initiative is expected to generate annual savings of $250–$300 million by consolidating functions, reducing staff, exiting leased office spaces and retiring legacy software. The program involves $170–$200 million in pre-tax personnel-related restructuring charges and an additional $30–$50 million in non-cash charges. It is projected to strengthen operating margins and support strategic investments, with substantial completion by the end of 2026 and related cash outlays (to be between $210-$230 million) continuing through 2027.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Moody's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Moody's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerMoody's is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Applied Digital Corporation (APLD - Free Report) , a stock from the same industry, has gained 32.1%. The company reported its results for the quarter ended February 2026 more than a month ago.

Applied Digital Corporation reported revenues of $126.64 million in the last reported quarter, representing a year-over-year change of +139.3%. EPS of -$0.36 for the same period compares with -$0.16 a year ago.

For the current quarter, Applied Digital Corporation is expected to post a loss of $0.13 per share, indicating a change of -8.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -18.2% over the last 30 days.

Applied Digital Corporation has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

Moody's Corporation (MCO) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript

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NEW YORK--(BUSINESS WIRE)--Moody’s Corporation (NYSE: MCO) will host a Q&A session on June 8, 2026, at 2:00 p.m. Eastern Time. The session will be moderated by Andrew C. Steinerman, Managing Director and Equity Research Analyst at J.P. Morgan, and will feature Cristina Pieretti, General Manager and Head of Generative AI Solutions.

The discussion will focus on Moody’s Generative AI strategy, including partnerships and product innovation and initiatives, and how these efforts support the delivery of differentiated insights for customers.

The webcast can be accessed under “Events & Presentations” on ir.moodys.com.

This event is conducted in compliance with Regulation FD. Senior management may use the content made available for this presentation during subsequent meetings with analysts and investors.

ABOUT Moody’s

In a world shaped by increasingly interconnected risks, Moody’s (NYSE:MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody’s gives customers the comprehensive perspective needed to act with confidence and thrive.

More News From Moody’s Corporation Investor Relations

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Moody's Corporation (MCO) Discusses Generative AI Strategy and Agentic Workflow Solutions for Enhanced Customer Insights Transcript

Moody's Corporation is well positioned to benefit from surging corporate debt issuance, with its MIS segment acting as a tollbooth for global credit ratings. MCO's Q1 revenue grew 8.1% year-over-year, driven by record investment-grade issuances and robust demand for AI-related financing from hyperscalers. The company maintains strong financial health (A- S&P rating), a 16-year dividend growth streak, and trades at a 7% discount to a $490 fair value estimate.