Moody’s (NYSE:MCO) Issues Earnings Results

Moody’s (NYSE:MCO) released its quarterly earnings data on Wednesday. The business services provider reported $3.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.39 by $0.25, FiscalAI reports. The firm had revenue of $1.89 billion for the quarter, compared to analysts’ expectations of $1.87 billion. Moody’s had a net margin of 29.92% and a return on equity of 63.58%. The company’s revenue for the quarter was up 13.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.62 earnings per share. Moody’s updated its FY 2026 guidance to 16.400-17.000 EPS.

Moody’s Stock Up 6.0%

MCO stock opened at $448.62 on Wednesday. The business has a 50 day moving average of $499.16 and a 200 day moving average of $495.11. The firm has a market cap of $80.03 billion, a PE ratio of 35.96, a price-to-earnings-growth ratio of 1.97 and a beta of 1.44. Moody’s has a twelve month low of $378.71 and a twelve month high of $546.88. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 1.70.

Moody’s News Roundup

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

• Positive Sentiment: Q4 results beat expectations — Moody’s reported non‑GAAP EPS of $3.64 (above consensus) and revenue of $1.89B, with revenue up ~13% year‑over‑year, underscoring continued top‑line growth and margin expansion. Moody’s Non-GAAP EPS of $3.64 beats by $0.20, revenue of $1.89B beats by $20M
• Positive Sentiment: Management cites technology scale‑up benefits — the company said efforts to scale new technologies are paying off, helping profit and revenue growth and supporting operating leverage. Moody’s Posts Higher Profit, Revenue
• Positive Sentiment: Analyst upgrade adds upside — Bank of America initiated coverage with a “buy” and $550 price target, signaling institutional optimism and potential further buying interest. Finviz coverage note
• Neutral Sentiment: FY‑2026 EPS guidance near consensus — management set a range of $16.40–$17.00 (consensus ~$16.47), which is essentially in line with expectations and removes major downside surprise but isn’t a clear upside catalyst. Press Release
• Neutral Sentiment: Regional expansion announced — Moody’s opened a regional headquarters in Riyadh to deepen Middle East presence, a strategic long‑term growth move but unlikely to meaningfully change near‑term earnings. Moody’s Establishes Regional Headquarters in Saudi Arabia
• Negative Sentiment: Valuation and recent share weakness are headwinds — MCO still trades at an elevated P/E and has seen recent price weakness, which could limit upside despite the beat and upgrade. Analysts and market commentary flag mixed signals on valuation vs. growth. Valuation and momentum analysis

Analyst Upgrades and Downgrades

Several research firms have weighed in on MCO. The Goldman Sachs Group dropped their price objective on Moody’s from $603.00 to $532.00 and set a “buy” rating for the company in a report on Monday, February 9th. Daiwa Securities Group raised Moody’s from a “neutral” rating to an “outperform” rating and raised their price target for the stock from $500.00 to $590.00 in a research note on Tuesday, January 13th. Wells Fargo & Company boosted their price objective on shares of Moody’s from $620.00 to $660.00 and gave the company an “overweight” rating in a research report on Wednesday, January 14th. Wall Street Zen lowered shares of Moody’s from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Finally, Morgan Stanley increased their price target on shares of Moody’s from $520.00 to $526.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 13th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Moody’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $559.81.

Insider Buying and Selling at Moody’s

In related news, CEO Robert Fauber sold 592 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $516.15, for a total value of $305,560.80. Following the transaction, the chief executive officer owned 61,082 shares in the company, valued at $31,527,474.30. The trade was a 0.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.14% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of MCO. Morgan Stanley boosted its stake in Moody’s by 2.7% during 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 buying an additional 62,798 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of Moody’s by 73.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,716,304 shares of the business services provider’s stock valued at $876,775,000 after acquiring an additional 726,971 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of Moody’s by 1.5% in 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 valued at $715,526,000 after purchasing an additional 20,779 shares in the last quarter. Windacre Partnership LLC raised its stake in Moody’s by 18.4% during the third quarter. Windacre Partnership LLC now owns 1,164,900 shares of the business services provider’s stock valued at $555,052,000 after purchasing an additional 181,305 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Moody’s by 2.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,111,130 shares of the business services provider’s stock valued at $567,621,000 after purchasing an additional 21,958 shares in the last quarter. Hedge funds and other institutional investors own 92.11% of the company’s stock.

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.