Moody’s (NYSE:MCO) Releases FY 2026 Earnings Guidance

Moody’s (NYSE:MCO) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 16.400-17.000 for the period, compared to the consensus estimate of 16.670. The company issued revenue guidance of -.

Moody’s Stock Down 3.0%

Shares of NYSE MCO opened at $452.72 on Friday. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.74 and a current ratio of 1.16. Moody’s has a 52-week low of $402.28 and a 52-week high of $546.88. The company’s 50 day moving average price is $445.73 and its 200-day moving average price is $477.00. The company has a market capitalization of $80.58 billion, a P/E ratio of 32.45, a price-to-earnings-growth ratio of 2.51 and a beta of 1.45.

Moody’s (NYSE:MCO) last released its earnings results on Wednesday, April 22nd. The business services provider reported $4.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.22 by $0.11. Moody’s had a net margin of 31.69% and a return on equity of 70.97%. The company had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.11 billion. During the same quarter in the previous year, the company earned $3.83 EPS. Moody’s’s quarterly revenue was up 8.1% compared to the same quarter last year. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. Equities analysts forecast that Moody’s will post 16.64 earnings per share for the current year.

Moody’s Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 15th will be issued a dividend of $1.03 per share. The ex-dividend date is Friday, May 15th. This represents a $4.12 annualized dividend and a dividend yield of 0.9%. Moody’s’s dividend payout ratio is currently 30.12%.

Wall Street Analysts Forecast Growth

MCO has been the subject of several recent research reports. Evercore reissued an “outperform” rating and set a $610.00 target price on shares of Moody’s in a research report on Thursday, February 19th. Daiwa Securities Group raised shares of Moody’s from a “neutral” rating to an “outperform” rating and boosted their target price for the stock from $500.00 to $590.00 in a research report on Tuesday, January 13th. BMO Capital Markets reissued a “market perform” rating and set a $489.00 target price on shares of Moody’s in a research report on Thursday. Bank of America reissued a “buy” rating and set a $565.00 target price on shares of Moody’s in a research report on Wednesday. Finally, JPMorgan Chase & Co. decreased their target price on shares of Moody’s from $600.00 to $560.00 and set an “overweight” rating for the company in a research report on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Moody’s has an average rating of “Moderate Buy” and a consensus price target of $544.47.

Insider Buying and Selling at Moody’s

In other news, CEO Robert Fauber sold 1,467 shares of the company’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $437.77, for a total value of $642,208.59. Following the completion of the sale, the chief executive officer owned 75,489 shares in the company, valued at $33,046,819.53. This represents a 1.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Richard G. Steele sold 375 shares of the company’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $456.71, for a total transaction of $171,266.25. Following the completion of the sale, the senior vice president owned 2,459 shares of the company’s stock, valued at approximately $1,123,049.89. The trade was a 13.23% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 8,222 shares of company stock valued at $3,786,732. Company insiders own 0.14% of the company’s stock.

Key Stories Impacting Moody’s

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: EPS beat and record Q1 performance: Moody’s reported $4.33 EPS (above consensus) and delivered record first-quarter results with revenue up ~8% year-over-year — a core driver supporting the stock. Moody’s Beats Q1 Forecasts as Revenue and Earnings Top Expectations
• Positive Sentiment: Share buybacks accelerated: management increased the buyback authorization to $2.5 billion, a capital-return move that supports EPS and signals confidence from the board. Moody’s Boosts Buybacks To $2.5 Billion Following Q1 Earnings Beat
• Positive Sentiment: Analytics and AI tailwinds: management cited strong analytics demand and progress integrating AI into product offerings — longer-term growth levers that investors prize. MCO Q1 deep dive: AI integration and ratings demand drive growth amid volatility
• Neutral Sentiment: FY2026 guidance reiterated and essentially in line with Street: Moody’s set EPS guidance of 16.40–17.00, a range that tracks near consensus and reduces uncertainty but offers limited upside surprise. Moody’s profit rises on strong analytics growth, lifts annual forecast
• Neutral Sentiment: Dividend declared: Moody’s set a quarterly dividend of $1.03 (ex-div May 15, payable June 5), a modest yield that supports total-return investors but is not a major catalyst.
• Negative Sentiment: Top-line nuance and rising costs: some metrics showed revenue not meaningfully above consensus (mixed reads across outlets) and operating expenses increased in the quarter — factors that likely tempered the rally despite the EPS beat. MCO Q1 Earnings Beat on Rising Analytics Demand & Higher Issuances

Hedge Funds Weigh In On Moody’s

A number of large investors have recently modified their holdings of the company. Morgan Stanley boosted its position in shares of Moody’s by 2.7% in the fourth quarter. Morgan Stanley now owns 2,370,601 shares of the business services provider’s stock valued at $1,211,023,000 after acquiring an additional 62,798 shares during the period. Price T Rowe Associates Inc. MD raised its stake in shares of Moody’s by 73.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,716,304 shares of the business services provider’s stock worth $876,775,000 after acquiring an additional 726,971 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Moody’s by 1.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,400,658 shares of the business services provider’s stock worth $715,526,000 after acquiring an additional 20,779 shares in the last quarter. Windacre Partnership LLC increased its stake in shares of Moody’s by 18.4% in the third quarter. Windacre Partnership LLC now owns 1,164,900 shares of the business services provider’s stock worth $555,052,000 after buying an additional 181,305 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of Moody’s by 2.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,111,130 shares of the business services provider’s stock worth $567,621,000 after buying an additional 21,958 shares during the period. 92.11% of the stock is currently owned by institutional investors.

Moody’s Company Profile

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.