Moody’s Reports Strong Q2 Results, Driven by Recovery and Growth
Moody's Corporation (MCO) delivered its best quarterly performance in years during the second quarter of 2026. Revenue increased by 9% year-over-year to $718 million in free cash flow, with adjusted operating margin expanding to around 53%. The company raised full-year guidance after reporting higher-than-expected earnings per share (EPS) of $3.85 against a consensus estimate of $3.42. The recovery is attributed to both cyclical and structural factors: Moody's Investors Service benefits from the reopening of debt capital markets, while Moody’s Analytics continues to grow its recurring revenue base through subscription-based services like Decision Solutions. Gross margins have rebounded above 74%, reflecting improved market conditions and scale in analytics. The TIKR valuation model suggests a price target of around $730 for MCO over the next several years, implying potential annualized returns of about 11% from current levels.
Tickers: $MCO
Topics: credit ratings free cash flow Moody's Q2 earnings revenue growth