Moody's beats Q2 estimates as revenue jumps 15% on higher issuances

Moody's Corp reported Q2 adjusted EPS of $4.68, beating the $4.24 consensus, as revenue jumped 15% on higher debt issuance.

"The results primarily benefited from an improvement in revenues," the company said, citing steady demand for analytics and strong performance at its Moody's Investors Service division.

Revenue reached $2.19 billion, surpassing the $2.09 billion consensus estimate by 4.9%. MIS revenue surged 25% to $1.3 billion, with broad-based gains across corporate finance, structured finance, financial institutions, and public finance. Moody's Analytics revenue rose 4% to $925 million, led by 9% growth in data and information.

Metric	Actual	Consensus	Beat/Miss
Revenue	$2.19B	$2.09B	+4.9%
EPS	$4.68	$4.24	+10.4%
MIS Revenue	$1.3B	$1.20B	+8.3%

Adjusted operating income climbed 25% to $1.21 billion, with the adjusted operating margin expanding to 55.3% from 50.9% a year earlier. Total expenses increased 5% to $1.14 billion, reflecting costs tied to acquisitions and restructuring. Net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million a year ago.

The company narrowed its full-year adjusted EPS guidance to $16.50-$17.00 from $16.40-$17.00 and raised its share repurchase target to $3 billion for 2026. Moody's expects revenue growth in the high-single-digit percent range with operating expenses rising in the mid-single digits.

Shares fell about 2% in pre-market trading on broader market weakness despite the beat. The guidance raise signals management expects sustained strength in capital markets activity. Investors will watch the Q3 earnings call for updates on issuance trends and margin trajectory.

This article is for informational purposes only and does not constitute investment advice.