Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
| Revenue (TTM) | $8.18B |
| Gross Profit (TTM) | $6.10B |
| EBITDA | $4.05B |
| Operating Margin | 46.30% |
| Return on Equity | 76.70% |
| Return on Assets | 15.60% |
| Revenue/Share (TTM) | $46.61 |
| Book Value | $18.95 |
| Price-to-Book | 27.19 |
| Price-to-Sales (TTM) | 10.66 |
| EV/Revenue | 11.59 |
| EV/EBITDA | 21.29 |
| Quarterly Earnings Growth (YoY) | 17.80% |
| Quarterly Revenue Growth (YoY) | 0.80% |
| Shares Outstanding | $172.42M |
| Float | $157.77M |
| % Insiders | 14.45% |
| % Institutions | 79.06% |
Volatility is currently expanding
In Q3 2026, the portfolio underperformed its benchmark, the MSCI All Country World Index. On a positive note, our stock selection in the health care sector led to significant outperformance relative to those in the benchmark. Numerous portfolio moves were made during the quarter, but our focus remained on our three main investment themes: electrification, financials and aerospace and defense.
Moody's Corporation is downgraded to 'Sell' after years of underperformance and a deteriorating business mix. MCO's growth has slowed, with Q3 revenue up just 1% and operating margins declining, reflecting weaker fundamentals. Valuation is demanding at nearly 30x forward earnings, despite muted growth prospects and a less attractive revenue mix.
AI infrastructure issuance increased fourfold from the prior year's third quarter. Refinancing needs across the U.S. and EMEA top $5 trillion.
Moody's Corporation remains a high-quality, cash-generative franchise, but its current 28-30x P/E valuation is difficult to justify. Q3 '26 results confirm slowing revenue growth (1%) and declining transaction revenues (-5%), with earnings guidance intact but below market expectations. AI is a useful tool for MCO but does not warrant the current valuation premium; the business remains fundamentally sound with limited operational risks.
Moody's Corporation (MCO) Q3 2026 Earnings Call Transcript
Moody's NYSE: MCO reported third-quarter 2026 results marked by continued growth in its analytics unit, strong profitability in ratings and a reaffirmed full-year outlook, even as overall rated issuance declined from a strong prior-year comparison.
While the top- and bottom-line numbers for Moody's (MCO) give a sense of how the business performed in the quarter ended September 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Moody's third-quarter 2026 adjusted earnings and revenues increased y/y, supported by steady demand for analytics.
Moody's (MCO) came out with quarterly earnings of $4.14 per share, missing the Zacks Consensus Estimate of $4.25 per share. This compares to earnings of $3.92 per share a year ago.
MCO Q3 earnings results are expected to benefit from healthy debt issuance and analytics demand, though rising expenses and uneven financing activity may weigh on growth.
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