Overview

• U.S. credit ratings provider's Q2 revenue grew 15%, beating analyst expectations

• Adjusted diluted EPS rose 31% and beat consensus

• Company repurchased $2.2 bln of shares year-to-date, raising full-year buyback guidance

Outlook

• Moody's reaffirms full-year 2026 revenue growth guidance in high-single digit percent range

• Company narrows full-year 2026 adjusted diluted EPS guidance to $16.50-$17.00

• Moody's raises full-year 2026 share repurchase guidance to up to $3.0 bln

Result Drivers

• MIS REVENUE GROWTH - Moody's Investors Service revenue rose 25% year-over-year, driven by broad-based strength across all lines of business and increased issuance activity

• CORPORATE AND STRUCTURED FINANCE ACTIVITY - Corporate Finance revenue growth was led by strong Investment Grade activity and an increase in Leveraged Finance issuance; Structured Finance revenue growth was supported by increases in ABS, RMBS and covered bond issuance

• MA RECURRING REVENUE - Moody's Analytics recurring revenue increased 7% year-over-year, representing 99% of total MA revenue, while transactional revenue declined primarily due to the Learning Solutions divestiture

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$2.19 bln	$2.08 bln (19 Analysts)
Q2 Adjusted EPS	Beat	$4.68	$4.24 (22 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• Wall Street's median 12-month price target for Moody's Corp is $553.50, about 12.8% above its July 21 closing price of $490.77

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• July 21 - MSCI shares fall as company raises expense forecast

• July 21 - Equifax sees downbeat annual revenue amid tough mortgage market

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