Moody's Reports Record Earnings for 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy MCO?
Source: seekingalpha
- Significant Revenue Growth: Moody's reported total revenue exceeding $7.7 billion for 2025, reflecting a 9% year-over-year increase, which underscores the company's strong performance in the financial services sector and solidifies its market leadership.
- Improved Profitability: The adjusted operating margin reached 51.1%, expanding by 300 basis points compared to the previous year, indicating successful cost control and operational efficiency, which enhances investor confidence.
- Accelerated AI Integration: Moody's investment in AI has paid off, with private credit revenue growing nearly 60% and a 97% retention rate for customers purchasing AI solutions, demonstrating the company's leading position in technological innovation that will drive future revenue growth.
- Optimistic Future Outlook: Management projects adjusted diluted EPS for 2026 to be between $16.40 and $17, implying approximately 12% growth at the midpoint, while also planning a $2 billion share repurchase, further enhancing shareholder value.
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Analyst Views on MCO
Wall Street analysts forecast MCO stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 423.220
Low
526.00
Averages
586.50
High
660.00
Current: 423.220
Low
526.00
Averages
586.50
High
660.00
About MCO
Moody's Corporation is a global integrated risk assessment company. It is a global provider of research and insights; data and information, and decision solutions, which help companies make decisions. Its MA segment provides data, intelligence and analytical tools to help business and financial leaders make decisions. MA consists of a premier fixed income and economic research business (Research & Insights); a data business powered by databases on companies and credit (Data & Information), and three cloud-based subscription businesses serving banking, insurance and KYC workflows (Decision Solutions). Its MIS segment is a global provider of credit ratings, research, and risk analysis. It publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MOODY'S STOCK RISES 4.2% FOLLOWING STRONG Q4 REVENUE AND PROFIT RESULTS
- Earnings Performance: Moody's shares increased by 4.2% following the release of their Q4 revenue and profit results.
- Financial Results: The company's performance exceeded expectations, contributing to the rise in share value.
See More
Moody's Corporation Q4 Earnings Preview
- Earnings Forecast: Moody's Corporation is set to release its Q4 earnings on February 18, with analysts predicting earnings per share of $3.44, a 30.9% increase from last year's $2.62, indicating a significant improvement in profitability.
- Revenue Expectations: According to Benzinga Pro, Moody's quarterly revenue is expected to reach $1.87 billion, up 12% from $1.67 billion last year, reflecting the company's robust performance and growth potential in the market.
- Regional Headquarters Establishment: Moody's has established a regional headquarters in Riyadh, Saudi Arabia, a strategic move aimed at enhancing its influence in the Middle Eastern market and laying the groundwork for future business expansion.
- Stock Price Movement: Despite the optimistic outlook, Moody's shares fell 0.8% to close at $423.22 on Tuesday, indicating market caution ahead of the upcoming earnings report.
See More
Moody's to Announce Q4 Earnings on February 18
- Earnings Announcement: Moody's is set to release its Q4 earnings on February 18, with consensus EPS estimates at $3.44, reflecting a 31.3% year-over-year increase, and revenue estimates at $1.87 billion, up 10.0% year-over-year, which would further solidify its leadership in the financial market.
- Performance Beat: Over the past two years, Moody's has exceeded EPS and revenue estimates 88% of the time, showcasing its strong profitability and market adaptability, thereby enhancing investor confidence in its future performance.
- Estimate Revision Dynamics: In the last three months, Moody's EPS estimates have seen 12 upward revisions and 2 downward revisions, while revenue estimates have experienced 9 upward and 2 downward revisions, indicating analysts' optimistic outlook on the company's future performance.
- Market Reaction: Moody's was upgraded to Buy by Stifel due to its debt issuance outlook, leading to a stock price increase, reflecting the market's positive view on its financial health and growth potential.
See More
Buffett's Final Berkshire Investment Overview
- Apple Investment: Upon Buffett's departure, Apple emerged as Berkshire's largest investment, valued at over $60 billion and accounting for 19% of the company's equity portfolio, indicating Buffett's confidence in its long-term returns.
- American Express and Coca-Cola: American Express and Coca-Cola hold the second and third largest positions at $52 billion and approximately $30 billion, representing 17% and 10% of Berkshire's portfolio, reflecting Buffett's ongoing trust in these brands.
- Portfolio Stability: Although Berkshire trimmed its Apple stake by 4% in Buffett's final quarter, this was a significant slowdown from the 15% reduction in Q3, demonstrating Buffett's strong confidence in Apple as a key asset moving forward.
- Future Outlook: With Greg Abel taking over, Berkshire is likely to maintain its heavy investment in Apple, especially given the company's strong performance with a 16% year-over-year revenue increase and a 19% rise in earnings per share during the holiday quarter.
See More
Energy Stocks Shine with APA and Exxon Leading Gains
- Energy Sector Performance: Energy stocks rose 1.4% on Wednesday, with APA Corp gaining 5.3% and Exxon Mobil Corp increasing by 3.0%, indicating strong sector performance that may attract more investor interest.
- ETF Performance: The Energy Select Sector SPDR ETF (XLE), which tracks the energy sector, was up 1.8% on the day and 22.32% year-to-date, reflecting optimistic market sentiment towards energy stocks and potentially driving more capital into the ETF.
- Year-to-Date Gains: APA Corp has risen 18.73% year-to-date, while Exxon Mobil Corp has increased by 25.94%, suggesting both companies are performing exceptionally well in the current market environment, which may enhance their appeal among investors.
- Industrial Sector Dynamics: The industrial sector rose 1.2%, with Global Payments Inc up 16.4% and Moody's Corp up 5.7%, indicating signs of recovery in industrial stocks that may provide new investment opportunities for investors.
See More
Moody's Corporation Reports Strong Q4 Performance
- Earnings Beat: Moody's reported adjusted EPS of $3.64 for Q4, surpassing the analyst consensus of $3.42, indicating robust growth across its business lines and boosting investor confidence.
- Significant Sales Growth: The company achieved quarterly sales of $1.889 billion, a 13% increase year-over-year, exceeding the market expectation of $1.862 billion, reflecting sustained demand for decision-support tools and credit-market services.
- Improved Profitability: Quarterly operating income rose to $770 million from $561 million a year ago, with operating margin improving from 33.6% to approximately 40.8%, showcasing a significant enhancement in the company's profitability.
- Optimistic Outlook: Moody's projects fiscal 2026 adjusted EPS between $16.40 and $17.00, above the analyst estimate of $16.37, indicating strong confidence in future performance and positive market expectations.
See More
MOODY'S STOCK RISES 4.2% FOLLOWING STRONG Q4 REVENUE AND PROFIT RESULTS
- Earnings Performance: Moody's shares increased by 4.2% following the release of their Q4 revenue and profit results.
- Financial Results: The company's performance exceeded expectations, contributing to the rise in share value.
See More
Moody's Corporation Q4 Earnings Preview
- Earnings Forecast: Moody's Corporation is set to release its Q4 earnings on February 18, with analysts predicting earnings per share of $3.44, a 30.9% increase from last year's $2.62, indicating a significant improvement in profitability.
- Revenue Expectations: According to Benzinga Pro, Moody's quarterly revenue is expected to reach $1.87 billion, up 12% from $1.67 billion last year, reflecting the company's robust performance and growth potential in the market.
- Regional Headquarters Establishment: Moody's has established a regional headquarters in Riyadh, Saudi Arabia, a strategic move aimed at enhancing its influence in the Middle Eastern market and laying the groundwork for future business expansion.
- Stock Price Movement: Despite the optimistic outlook, Moody's shares fell 0.8% to close at $423.22 on Tuesday, indicating market caution ahead of the upcoming earnings report.
See More
Moody's to Announce Q4 Earnings on February 18
- Earnings Announcement: Moody's is set to release its Q4 earnings on February 18, with consensus EPS estimates at $3.44, reflecting a 31.3% year-over-year increase, and revenue estimates at $1.87 billion, up 10.0% year-over-year, which would further solidify its leadership in the financial market.
- Performance Beat: Over the past two years, Moody's has exceeded EPS and revenue estimates 88% of the time, showcasing its strong profitability and market adaptability, thereby enhancing investor confidence in its future performance.
- Estimate Revision Dynamics: In the last three months, Moody's EPS estimates have seen 12 upward revisions and 2 downward revisions, while revenue estimates have experienced 9 upward and 2 downward revisions, indicating analysts' optimistic outlook on the company's future performance.
- Market Reaction: Moody's was upgraded to Buy by Stifel due to its debt issuance outlook, leading to a stock price increase, reflecting the market's positive view on its financial health and growth potential.
See More
Buffett's Final Berkshire Investment Overview
- Apple Investment: Upon Buffett's departure, Apple emerged as Berkshire's largest investment, valued at over $60 billion and accounting for 19% of the company's equity portfolio, indicating Buffett's confidence in its long-term returns.
- American Express and Coca-Cola: American Express and Coca-Cola hold the second and third largest positions at $52 billion and approximately $30 billion, representing 17% and 10% of Berkshire's portfolio, reflecting Buffett's ongoing trust in these brands.
- Portfolio Stability: Although Berkshire trimmed its Apple stake by 4% in Buffett's final quarter, this was a significant slowdown from the 15% reduction in Q3, demonstrating Buffett's strong confidence in Apple as a key asset moving forward.
- Future Outlook: With Greg Abel taking over, Berkshire is likely to maintain its heavy investment in Apple, especially given the company's strong performance with a 16% year-over-year revenue increase and a 19% rise in earnings per share during the holiday quarter.
See More
Energy Stocks Shine with APA and Exxon Leading Gains
- Energy Sector Performance: Energy stocks rose 1.4% on Wednesday, with APA Corp gaining 5.3% and Exxon Mobil Corp increasing by 3.0%, indicating strong sector performance that may attract more investor interest.
- ETF Performance: The Energy Select Sector SPDR ETF (XLE), which tracks the energy sector, was up 1.8% on the day and 22.32% year-to-date, reflecting optimistic market sentiment towards energy stocks and potentially driving more capital into the ETF.
- Year-to-Date Gains: APA Corp has risen 18.73% year-to-date, while Exxon Mobil Corp has increased by 25.94%, suggesting both companies are performing exceptionally well in the current market environment, which may enhance their appeal among investors.
- Industrial Sector Dynamics: The industrial sector rose 1.2%, with Global Payments Inc up 16.4% and Moody's Corp up 5.7%, indicating signs of recovery in industrial stocks that may provide new investment opportunities for investors.
See More
Moody's Corporation Reports Strong Q4 Performance
- Earnings Beat: Moody's reported adjusted EPS of $3.64 for Q4, surpassing the analyst consensus of $3.42, indicating robust growth across its business lines and boosting investor confidence.
- Significant Sales Growth: The company achieved quarterly sales of $1.889 billion, a 13% increase year-over-year, exceeding the market expectation of $1.862 billion, reflecting sustained demand for decision-support tools and credit-market services.
- Improved Profitability: Quarterly operating income rose to $770 million from $561 million a year ago, with operating margin improving from 33.6% to approximately 40.8%, showcasing a significant enhancement in the company's profitability.
- Optimistic Outlook: Moody's projects fiscal 2026 adjusted EPS between $16.40 and $17.00, above the analyst estimate of $16.37, indicating strong confidence in future performance and positive market expectations.
See More
