Moody's Corporation 8-K
PositiveEarningsGuidance reaffirmed
Lower leveraged finance issuance weighed on Moody’s Investors Service; FY2026 adjusted EPS guidance held at $16.50–$17.00.
Filed 2026-10-21 06:57 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with FY2026 guidance reaffirmed. Revenue grew 1% reported and 3% on an organic constant currency basis; Moody’s declared a $1.03 quarterly dividend, payable 12/11/2026 to shareholders of record 11/20/2026.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $2.02B, +1% Y/Y | $6.29B, +8% Y/Y |
| Operating margin | 44.8%, vs 45.7% | 45.7%, vs 44.3% |
| Adjusted operating margin, non-GAAP | 52.6%, vs 52.9% | 53.7%, vs 51.8% |
| Operating income | $906M, -1.2% Y/Y | $2.87B, +11% Y/Y |
| Net income attributable to Moody’s | $734M, +14% Y/Y | $2.27B, +23% Y/Y |
| Diluted EPS | $4.24, +18% Y/Y | $12.98, +27% Y/Y |
| Adjusted diluted EPS, non-GAAP | $4.14, +6% Y/Y | $13.14, +16% Y/Y |
| Operating cash flow | — | $2.47B, +21% Y/Y |
| Free cash flow | — | $2.20B, +22% Y/Y |
- Moody’s Analytics revenue rose 3% reported and 8% organically; recurring revenue was 99% of segment revenue, and ARR reached $3.69B, up 8%. Moody’s Investors Service revenue fell 1%, primarily on lower leveraged finance issuance; Investment Grade revenue grew 18%.
- YTD shareholder returns were ≈$3.1B: $2.6B in repurchases and $543M in dividends. Weighted-average diluted shares were 173.3M vs 179.6M in Q3 2025 and 175.1M vs 180.2M for 9M. Cash was $1.51B at 9/30/2026 vs $2.38B at 12/31/2025; total debt carrying value was $6.91B vs $6.99B.
- FY2026 assumptions now include U.S. high-yield spreads widening to ≈300 bp in the coming quarter (previously ≈330 bp over the coming two quarters) and a global speculative-grade default rate of ≈3.8% at year-end (previously ≈3%).
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| MCO revenue | FY2026 | Increase in the high-single-digit percent range | Increase in the high-single-digit percent range | reaffirmed |
| Operating expenses | FY2026 | Increase in the mid-single-digit percent range | Increase in the mid-single-digit percent range | reaffirmed |
| Operating margin | FY2026 | 44%-45% | 44%-45% | reaffirmed |
| Adjusted operating margin, non-GAAP | FY2026 | 52%-53% | 52%-53% | reaffirmed |
| Interest expense, net | FY2026 | $220M-$240M | $220M-$240M | reaffirmed |
| Non-operating expense/income | FY2026 | $70M-$90M | $70M-$90M | reaffirmed |
| Effective tax rate | FY2026 | 23%-25% | 23%-25% | reaffirmed |
| Diluted EPS | FY2026 | $16.00-$16.50 | $16.00-$16.50 | reaffirmed |
| Adjusted diluted EPS, non-GAAP | FY2026 | $16.50-$17.00 | $16.50-$17.00 | reaffirmed |
| Operating cash flow | FY2026 | $3.15B-$3.35B | $3.15B-$3.35B | reaffirmed |
| Free cash flow, non-GAAP | FY2026 | $2.7B-$2.9B | $2.7B-$2.9B | reaffirmed |
| Share repurchases | FY2026 | Up to $3.0B | Up to $3.0B | reaffirmed |
| MA revenue | FY2026 | Increase in the mid-single-digit percent range | Increase in the mid-single-digit percent range | reaffirmed |
| MA organic constant currency revenue | FY2026 | Increase in the high-single-digit percent range | Increase in the high-single-digit percent range | reaffirmed |
| MA ARR | FY2026 | Increase in the high-single-digit percent range | Increase in the high-single-digit percent range | reaffirmed |
| MA adjusted operating margin, non-GAAP | FY2026 | 34%-35% | 34%-35% | reaffirmed |
| MIS revenue | FY2026 | Increase in the high-single-digit percent range | Increase in the high-single-digit percent range | reaffirmed |
| MIS adjusted operating margin, non-GAAP | FY2026 | ≈65% | ≈65% | reaffirmed |
Investor Takeaways
- Track FY2026 results against the reaffirmed outlook, particularly MIS revenue as debt issuance and leveraged finance activity evolve.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-21 14:34:16Z