Moody’s Corporation (NYSE: MCO) announced record financial results for the first quarter of 2026, reporting revenue of $2.08 billion, an 8% increase from the $1.92 billion recorded in the same period last year. The company’s adjusted diluted earnings per share (EPS) rose 13% to $4.33, exceeding the consensus analyst estimate. On a GAAP basis, diluted EPS was $3.73, up from $3.46 in the prior-year quarter.
The record performance was underpinned by growth in both major business segments. Moody’s Investors Service (MIS), the company’s credit rating arm, reported revenue of $1.15 billion, an 8% increase year-over-year. This growth was primarily fueled by a surge in global rated issuance, which surpassed $2 trillion during the quarter. Specifically, investment-grade revenue rose 33% and high-yield revenue increased 31%, reflecting a robust environment for corporate financing. MIS achieved an adjusted operating margin of 66.7%, benefiting from significant operating leverage.
Moody’s Analytics (MA) also reported an 8% revenue increase, reaching $928 million. The segment’s annualized recurring revenue (ARR) grew by 8%, supported by double-digit gains in the Data and Information sub-segment. Rob Fauber, President and Chief Executive Officer of Moody’s, attributed the analytics growth to the accelerating adoption of artificial intelligence, which he stated is driving demand for decision-grade intelligence in high-stakes environments. Alongside the financial results, the company announced that Christina Kosmowski has been named CEO of Moody’s Analytics, effective June 2026.
Total operating expenses for the quarter were $1.16 billion, a 7% increase from the prior year. This figure included a 3% impact related to a reserve for an international non-income tax obligation and a 2% unfavorable impact from foreign currency translation. Despite these costs, the company’s adjusted operating margin expanded by 150 basis points to 53.2%. Operating cash flow for the period was $939 million, while free cash flow grew 26% to $844 million.
Following the quarterly results, Moody’s updated its full-year 2026 outlook. The company now expects adjusted diluted EPS to be in the range of $16.40 to $17.00, while reaffirming its expectation for high-single-digit revenue growth. Additionally, Moody’s increased its full-year share repurchase guidance to approximately $2.5 billion, up from previous targets. During the first quarter, the company returned $1.7 billion to shareholders, comprising $1.5 billion in share repurchases and $185 million in dividends. The Board of Directors also declared a regular quarterly dividend of $1.03 per share, payable on June 5, 2026.