Moody's Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MCO?
Source: seekingalpha
- Earnings Beat: Moody's reported a Q4 non-GAAP EPS of $3.64, surpassing expectations by $0.20, indicating strong profitability and boosting investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved Q4 revenue of $1.89 billion, a 13.2% year-over-year increase that exceeded expectations by $20 million, reflecting robust market performance and sustained demand across its services.
- Segment Performance: Revenue growth was driven by a 12% increase in Decision Solutions, 6% in Research and Insights, and 8% in Data & Information, showcasing the company's success in diversifying its business and solidifying its market position.
- Positive Market Outlook: Moody's was upgraded to Buy by Stifel due to favorable debt issuance outlook, leading to a stock price increase, which indicates market optimism regarding its future growth potential and may attract more investor interest.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MCO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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 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
Moody's Q4 Earnings Beat Expectations with Strong 2026 Guidance
- Earnings Surprise: Moody's reported an adjusted EPS of $3.64 for Q4, exceeding analyst expectations of $3.44, although it decreased from $3.92 in Q3, it significantly improved from $2.62 a year ago, indicating sustained profitability.
- Strong Revenue Growth: The company achieved Q4 revenue of $1.89 billion, surpassing the $1.87 billion consensus, despite a decline from $2.01 billion in the previous quarter, reflecting a 7.5% increase from $1.67 billion year-over-year, showcasing robust performance in market analytics.
- Optimistic Future Guidance: Moody's projects adjusted EPS for 2026 to be between $16.40 and $17.00, with a midpoint of $16.70, exceeding the consensus of $16.45, demonstrating confidence in future growth prospects.
- Robust Cash Flow: The company anticipates free cash flow between $2.8 billion and $3.0 billion, aligning closely with the Visible Alpha consensus of $2.99 billion, indicating strong capital management and profitability.
See More
The 'Boomcession' Phenomenon in the U.S. Economy
- Disconnect Between Data and Sentiment: Despite rising economic output and stock market gains, ordinary Americans are feeling increased financial pressure, as evidenced by credit card debt reaching a record $1.28 trillion in Q4 last year, indicating that economic prosperity is not benefiting the majority.
- Uneven Inflation Impact: According to Morgan Stanley, lower-income consumers faced significantly higher inflation rates for food and housing in 2024 compared to wealthier counterparts, exacerbating the gap between economic growth and consumer confidence and highlighting social inequality.
- 'Hiring Recession' in Job Market: While economic output per hour hit new highs, ordinary workers are anxious as the job market tightens, with December job openings falling to their lowest level since 2020, reflecting the disparity in economic benefits between high-income stockholders and the general workforce.
- Crisis of Trust in Economic Data: Surveys reveal that nearly 60% of Americans believe the economy is in recession, particularly among low-income households facing unstable financial situations, leading to a decline in trust in government economic data and highlighting the significant gap between economic prosperity and public sentiment.
See More
Moody's Q4 Earnings Exceed Expectations
- Earnings Beat: Moody's reported a Q4 non-GAAP EPS of $3.64, surpassing expectations by $0.20, indicating strong profitability and boosting investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved Q4 revenue of $1.89 billion, a 13.2% year-over-year increase that exceeded expectations by $20 million, reflecting robust market performance and sustained demand across its services.
- Segment Performance: Revenue growth was driven by a 12% increase in Decision Solutions, 6% in Research and Insights, and 8% in Data & Information, showcasing the company's success in diversifying its business and solidifying its market position.
- Positive Market Outlook: Moody's was upgraded to Buy by Stifel due to favorable debt issuance outlook, leading to a stock price increase, which indicates market optimism regarding its future growth potential and may attract more investor interest.
See More
Moody's Releases Q4 and Full Year 2025 Earnings Report
- Earnings Announcement: Moody's Corporation announced its Q4 and full year 2025 earnings on February 18, 2026, providing insights into its strategic outlook for 2026 amidst a complex risk landscape.
- Teleconference Details: Following the earnings release, a one-hour teleconference will be held, expected to attract investor interest and further elaborate on the company's strategic direction and market expectations.
- Investor Relations Information: Moody's Investor Relations website will host the earnings report and related materials, ensuring transparency and enhancing communication with shareholders, reflecting the company's commitment to its investors.
- Global Market Impact: As a key player in global markets, Moody's earnings report and outlook will influence investor confidence and could have a direct impact on its stock price.
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
Moody's Q4 Earnings Beat Expectations with Strong 2026 Guidance
- Earnings Surprise: Moody's reported an adjusted EPS of $3.64 for Q4, exceeding analyst expectations of $3.44, although it decreased from $3.92 in Q3, it significantly improved from $2.62 a year ago, indicating sustained profitability.
- Strong Revenue Growth: The company achieved Q4 revenue of $1.89 billion, surpassing the $1.87 billion consensus, despite a decline from $2.01 billion in the previous quarter, reflecting a 7.5% increase from $1.67 billion year-over-year, showcasing robust performance in market analytics.
- Optimistic Future Guidance: Moody's projects adjusted EPS for 2026 to be between $16.40 and $17.00, with a midpoint of $16.70, exceeding the consensus of $16.45, demonstrating confidence in future growth prospects.
- Robust Cash Flow: The company anticipates free cash flow between $2.8 billion and $3.0 billion, aligning closely with the Visible Alpha consensus of $2.99 billion, indicating strong capital management and profitability.
See More
The 'Boomcession' Phenomenon in the U.S. Economy
- Disconnect Between Data and Sentiment: Despite rising economic output and stock market gains, ordinary Americans are feeling increased financial pressure, as evidenced by credit card debt reaching a record $1.28 trillion in Q4 last year, indicating that economic prosperity is not benefiting the majority.
- Uneven Inflation Impact: According to Morgan Stanley, lower-income consumers faced significantly higher inflation rates for food and housing in 2024 compared to wealthier counterparts, exacerbating the gap between economic growth and consumer confidence and highlighting social inequality.
- 'Hiring Recession' in Job Market: While economic output per hour hit new highs, ordinary workers are anxious as the job market tightens, with December job openings falling to their lowest level since 2020, reflecting the disparity in economic benefits between high-income stockholders and the general workforce.
- Crisis of Trust in Economic Data: Surveys reveal that nearly 60% of Americans believe the economy is in recession, particularly among low-income households facing unstable financial situations, leading to a decline in trust in government economic data and highlighting the significant gap between economic prosperity and public sentiment.
See More
Moody's Q4 Earnings Exceed Expectations
- Earnings Beat: Moody's reported a Q4 non-GAAP EPS of $3.64, surpassing expectations by $0.20, indicating strong profitability and boosting investor confidence in the company's financial health.
- Significant Revenue Growth: The company achieved Q4 revenue of $1.89 billion, a 13.2% year-over-year increase that exceeded expectations by $20 million, reflecting robust market performance and sustained demand across its services.
- Segment Performance: Revenue growth was driven by a 12% increase in Decision Solutions, 6% in Research and Insights, and 8% in Data & Information, showcasing the company's success in diversifying its business and solidifying its market position.
- Positive Market Outlook: Moody's was upgraded to Buy by Stifel due to favorable debt issuance outlook, leading to a stock price increase, which indicates market optimism regarding its future growth potential and may attract more investor interest.
See More
Moody's Releases Q4 and Full Year 2025 Earnings Report
- Earnings Announcement: Moody's Corporation announced its Q4 and full year 2025 earnings on February 18, 2026, providing insights into its strategic outlook for 2026 amidst a complex risk landscape.
- Teleconference Details: Following the earnings release, a one-hour teleconference will be held, expected to attract investor interest and further elaborate on the company's strategic direction and market expectations.
- Investor Relations Information: Moody's Investor Relations website will host the earnings report and related materials, ensuring transparency and enhancing communication with shareholders, reflecting the company's commitment to its investors.
- Global Market Impact: As a key player in global markets, Moody's earnings report and outlook will influence investor confidence and could have a direct impact on its stock price.
See More
