Moody's MCO 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 Rise
Quarterly 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 Performance
Moody’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 Sheet
As 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 Update
In the first half of 2026, MCO repurchased $2.2 billion worth of shares.
MCO’s 2026 Guidance
Moody’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 MCO
Moody’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.
Moody's Corporation Price, Consensus and EPS Surprise
Moody's Corporation price-consensus-eps-surprise-chart | Moody's Corporation Quote
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 Peers
Accenture plc ACN 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 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.
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This article originally published on Zacks Investment Research (zacks.com).