Moody's Corporation MCO
NYSEExchanges and financial dataFinancials to Jun 30, 2026 · Updated Oct 6, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 2.4 | 1.5 |
| Securities | 0.1 | 0.0 |
| Debt | 7.0 | 6.9 |
| Net cash | -4.5 | -5.5 |
| Equity | 4.1 | 3.0 |
- Debt / EBITDA
- 1.67×
- Debt / equity
- 2.30×
- Leases (6/30/26)
- $576M
- Diluted shares
- 175M
- Book value / share
- $17.34
- Price / book
- 25.7×
- Net cash / share
- −$31.23
- Market cap
- $77.6B
- Enterprise value
- $83.1B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 15.1% | +10.7 pts | |
| Operating margin | 47.9% | +4.8 pts | |
| FCF margin | 31.5% | +6.8 pts | |
| Capex / revenue | 4.2% | +0.2 pts | |
| Analytics annualized recurring revenue growth | +9% | +1 pts | |
| Analytics current recurring contract value | $3.7B | +9% | – |
| Ratings transaction revenue | $891M | +34% | |
| Ratings recurring revenue | $369M | +6% | |
| Analytics retained revenue base · 12/31/25 | 93.0% | -1.0 pts |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About MCO
Moody's sells credit ratings and risk data, models and software. Ratings produced 53% of FY2025 revenue; Analytics produced 47%.
- De Facto Standard
Moody's ratings give issuers a credit opinion accepted by investors, lending contracts and capital-market conventions.
- Data Workflow Lockin
Models, datasets and customer integrations sit inside credit, insurance and compliance decisions.
- Oct 1, 2026
Moody’s and Allvue launched a private-credit risk model using borrower-performance data, extending Analytics into less transparent debt markets. Paid adoption and revenue were not disclosed.
- Sep 14, 2026
Moody’s agreed to acquire a minority stake in PhilRatings, extending its Asian rating-agency network. Terms were not disclosed and PhilRatings will retain independent management and credit processes.
- Jul 22, 2026
Moody’s lowered its 2026 operating cash-flow range to $3.15-$3.35 billion from $3.25-$3.45 billion and increased its buyback ceiling to $3 billion, tightening the cash available for other capital uses.
- Jul 2, 2026
ESMA fined Moody’s Germany €2.145 million for four reporting breaches, showing that ratings-market trust depends on accurate supervisory data as well as credit analysis.
- Jun 30, 2026 · Gain +$181M
The Regulatory Solutions sale generated $179 million pretax gain, with a further $2 million adjustment to the 2025 Learning Solutions sale. This lifted profit without recurring operating revenue.
Ownership
Go deeper on MCO
- Compare stock research toolsFundamentals, valuation and screening platforms for MCO.19 tools
- See MCO's price chartNo price chart here yet. See price history and indicators.17 tools
- Read MCO's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
- Investing tool dealsCurrent discounts on research, charting and tracking tools.81 deals
On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 18.45 | 21.65 | 22.85 | 25.20 | 28.37 | 33.09 | 29.60 | 32.15 | 38.80 | 42.90 | 46.76 | +9.8%/yr | |
| Cash flow | 6.44 | 3.89 | 7.52 | 8.74 | 11.34 | 10.67 | 7.98 | 11.69 | 15.53 | 16.13 | 19.02 | +10.7%/yr | |
| Earnings | 1.36 | 5.15 | 6.74 | 7.42 | 9.39 | 11.78 | 7.44 | 8.73 | 11.26 | 13.67 | 16.02 | +29.2%/yr | |
| Free cash flow | 5.85 | 3.42 | 7.05 | 8.38 | 10.79 | 9.93 | 6.45 | 10.22 | 13.80 | 14.31 | 17.00 | +10.4%/yr | |
| Capex | 0.59 | 0.47 | 0.47 | 0.36 | 0.54 | 0.74 | 1.53 | 1.47 | 1.74 | 1.81 | 2.02 | +13.3%/yr | |
| Dividends | 1.46 | 1.49 | 1.73 | 1.97 | 2.22 | 2.46 | 2.79 | 3.07 | 3.39 | 3.90 | 4.01 | +11.5%/yr | |
| Book value | -6.27 | -1.69 | 2.36 | 3.19 | 8.29 | 14.51 | 13.64 | 18.03 | 19.51 | 22.53 | 17.34 | – | |
| Diluted shares (M) | 195 | 194 | 194 | 192 | 189 | 188 | 185 | 184 | 183 | 180 | 175 | -0.9%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 3.6 | 4.2 | 4.4 | 4.8 | 5.4 | 6.2 | 5.5 | 5.9 | 7.1 | 7.7 | 8.2 | +8.8%/yr | |
| Operating income | 0.7 | 1.8 | 1.9 | 2.0 | 2.4 | 2.8 | 1.9 | 2.1 | 2.9 | 3.4 | 3.7 | +20.0%/yr | |
| Net income | 0.3 | 1.0 | 1.3 | 1.4 | 1.8 | 2.2 | 1.4 | 1.6 | 2.1 | 2.5 | 2.8 | +28.0%/yr | |
| Free cash flow | 1.1 | 0.7 | 1.4 | 1.6 | 2.0 | 1.9 | 1.2 | 1.9 | 2.5 | 2.6 | 3.0 | +9.4%/yr | |
| Buybacks | 0.7 | 0.2 | 0.2 | 1.0 | 0.5 | 0.8 | 1.0 | 0.5 | 1.3 | 1.6 | 3.1 | +9.0%/yr | |
| Dividends | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.5 | 0.5 | 0.6 | 0.6 | 0.7 | 0.7 | +10.5%/yr | |
| Net cash | -1.1 | -4.4 | -3.9 | -3.7 | -3.7 | -5.5 | -5.5 | -4.8 | -4.5 | -4.5 | -5.5 | −$3.4B | |
| Margins & returns (%) | |||||||||||||
| Operating margin | 18.1 | 43.3 | 42.0 | 41.4 | 44.5 | 45.7 | 34.4 | 36.1 | 40.6 | 43.4 | 44.8 | +25.4 pts | |
| Net margin | 7.4 | 23.8 | 29.5 | 29.4 | 33.1 | 35.6 | 25.1 | 27.2 | 29.0 | 31.9 | 34.3 | +24.5 pts | |
| FCF margin | 31.7 | 15.8 | 30.8 | 33.3 | 38.0 | 30.0 | 21.8 | 31.8 | 35.6 | 33.4 | 36.4 | +1.6 pts | |
| ROIC | – | 35.7 | 34.2 | 37.0 | 35.6 | 27.3 | 18.5 | 20.8 | 28.3 | 30.8 | 34.0 | – | |
| Return on equity | – | – | 285.4 | 232.4 | 113.3 | 81.2 | 54.5 | 48.4 | 57.7 | 60.7 | 92.4 | – | |
| Stock pay % of revenue | 2.7 | 2.9 | 2.9 | 2.8 | 2.9 | 2.8 | 3.1 | 3.3 | 3.1 | 3.0 | 2.8 | +0.3 pts | |
| Capex % of revenue | 3.2 | 2.2 | 2.0 | 1.4 | 1.9 | 2.2 | 5.2 | 4.6 | 4.5 | 4.2 | 4.3 | +1.0 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- strong
- Moody's Investors Service (Credit Ratings)53.4%1 claim
- Moody's Analytics (Risk & Data/Software)46.6%1 claim
Moat claims
- Applies to
- Moody's Investors Service (Credit Ratings)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 6, 2026
Moody's ratings give issuers a credit opinion accepted by investors, lending contracts and capital-market conventions. A second rating often complements the first, so broad investor acceptance matters more than an exclusive licence.
Q2 2026 recurring ratings revenue rose 6% to $369 million, but EU turnover share fell from 30.59% to 29.63%; strong issuance does not establish greater competitive protection.
- Ratings transaction revenue$891M+34%
- Ratings recurring revenue$369M+6%
- Rating errors, conflicts of interest or inaccurate regulator reporting can damage investor acceptance and increase liability.
- Private credit and internal credit models can bypass public ratings in parts of the debt market.
- Regulators can reduce automatic use of ratings and promote smaller agencies.
- FilingMoody's 2025 Form 10-K: business, segment revenue and risksFeb 18, 2026
- SourceESMA 2025 credit-rating market-share report: EU turnover based on 2024 accountsDec 18, 2025
- Applies to
- Moody's Analytics (Risk & Data/Software)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 6, 2026
Models, datasets and customer integrations sit inside credit, insurance and compliance decisions. Replacing them requires data mapping, model validation and process changes. Retained contract value provides a more direct test than subscription mix alone.
Q2 2026 ARR rose 9% to $3,661 million, but the latest retained base was 93% versus 94% in 2024; expansion is supported while retention has softened.
- Analytics annualized recurring revenue growth+9%
- Analytics current recurring contract value$3.7B+9%
- Analytics retained revenue base93.0%-1.0 pts
- AI tools can move customer work to another interface and make competing datasets easier to use.
- Banks and insurers can build models internally or replace individual modules during system migrations.
- Data errors, cyber incidents and poor implementation can weaken renewals; data and cloud costs can compress profit.
- FilingMoody's 2025 Form 10-K: business, segment revenue and risksFeb 18, 2026
- FilingMoody's Q2 2026 earnings release: ARR, issuance, results and July outlookJul 22, 2026
- SourceMoody's Q4 2025 earnings presentation: recurring contract retention and expansionFeb 18, 2026
Profile change log
- Oct 6, 2026 · business change
Moody’s and Allvue launched a private-credit risk model using borrower-performance data, extending Analytics into less transparent debt markets. Paid adoption and revenue were not disclosed.
- Oct 6, 2026 · business change
Moody’s agreed to acquire a minority stake in PhilRatings, extending its Asian rating-agency network. Terms were not disclosed and PhilRatings will retain independent management and credit processes.
- Oct 6, 2026 · business change
Moody’s lowered its 2026 operating cash-flow range to $3.15-$3.35 billion from $3.25-$3.45 billion and increased its buyback ceiling to $3 billion, tightening the cash available for other capital uses.
- Oct 6, 2026 · business change
ESMA fined Moody’s Germany €2.145 million for four reporting breaches, showing that ratings-market trust depends on accurate supervisory data as well as credit analysis.
- Oct 6, 2026 · business change
Regnology announced completion of its purchase of Moody’s Regulatory Solutions. Moody’s recorded a $179 million pretax gain in Q2 2026. Banking revenue comparisons now exclude part of the former software portfolio.
- Oct 6, 2026 · business change
Moody’s appointed Christina Kosmowski to lead Analytics from June 2026, bringing enterprise-software experience to its data and AI expansion.
- Oct 6, 2026 · business change
Fitch Learning announced completion of its purchase of Moody’s Learning Solutions, reducing transactional training revenue as Analytics focuses on recurring data and software. The sale produced a $23 million pretax gain in 2025.
- Oct 6, 2026 · analyst revision
Completed the two existing moat claims with stable trajectories, recurring-contract retention evidence, market links, management and a measurable debate. Replaced H1 2026 revenue weights with FY2025 external revenue weights and removed adjusted segment-profit shares that do not match consolidated GAAP profit.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Credit-rating services
Independent credit opinions and ongoing monitoring sold to debt issuers and investors worldwide, including ratings-related research and ancillary services. Market shares below cover EU registered-agency turnover only; they are not global issuance shares.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| MCO | 80 | – | 44.8% | |
| Industry median | 17 | 82 | 64.2% | 42.1% |
| Sector median | 49 | 73 | 61.3% | 34.1% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Refinancing maturities and corporate investment create new rating assignments; AI infrastructure financing is a current issuance driver.
- Tight credit spreads and open capital markets help issuers refinance, while sudden rate or confidence shocks can delay deals.
- Private credit, securitization and new domestic bond markets can expand the range of debt requiring independent analysis.
- Ongoing surveillance and investor conventions preserve recurring fees between issuance cycles.
- High rates, recession or wider spreads can close issuance windows; the effect on rating transaction revenue can be rapid.
- Rating failures, issuer-pay conflicts and regulatory reporting errors can damage acceptance and produce lawsuits or sanctions.
- Internal credit models, unrated private lending and smaller rating agencies can win mandates without replacing the entire ratings standard.
- Rules limiting mechanical reliance on ratings and promoting smaller agencies can restrain incumbent pricing or increase compliance costs.
- Currency translation changes overseas revenue and costs; revenue growth must be separated from exchange-rate movements.
Bulls & bears
Can Moody’s sustain accepted ratings and recurring customer workflows as the issuance cycle changes and AI makes data easier to access?
Arguments
What to watch
- 1Rated issuance versus ratings transaction and monitoring revenue
- 2Analytics organic constant currency ARR and retained base
- 3Operating cash flow after software investment and capital returns
Next check: Q3 2026 results on October 21, 2026: compare ratings demand, ARR and cash generation with the July outlook.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 5, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 80/100 by <a href="https://www.findmymoat.com/stocks/XNYS:MCO">Find My Moat</a> (as of September 2026)Request update
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