MCO · Moody's Corporation

Moody's Corporation delivered record first-quarter results for 2026, with total revenue of $2.1 billion, up 8% year-over-year, driven by strong performance in both Moody's Investors Service (MIS) and Moody's Analytics (MA). MIS achieved record revenues of $1.2 billion, fueled by robust investment-grade issuance and AI-related financing from hyperscalers, while MA saw 8% ARR growth and 250 basis points of adjusted operating margin expansion. Consolidated adjusted operating margin expanded 150 basis points to 53.2%, reflecting powerful operating leverage. Adjusted diluted EPS grew 13% to $4.33, exceeding the prior-year period. Operating cash flow increased 24% to $939 million, and free cash flow rose 26% to $844 million. The company accelerated capital returns, repurchasing $1.5 billion in shares and paying $185 million in dividends during the quarter, and raised its full-year share repurchase guidance to approximately $2.5 billion. Management reaffirmed its full-year 2026 adjusted diluted EPS guidance of $16.40 to $17.00 and revenue growth in the high-single-digit percent range. CEO Rob Fauber highlighted the strong operating leverage and AI-driven demand for Moody's decision-grade intelligence.