Moody’s jumps after record Q1 results, higher 2026 EPS outlook and buyback raise
Moody’s shares are rising after the company posted record Q1 2026 results, with adjusted EPS of $4.33 on revenue of $2.079 billion. Management also lifted its 2026 GAAP EPS outlook to $16.00–$16.60 and raised full-year share repurchase guidance to about $2.5 billion.
1) What’s moving the stock
Moody’s (MCO) is climbing after reporting record first-quarter 2026 results and upgrading key elements of its 2026 outlook. The company delivered adjusted diluted EPS of $4.33 (up 13% year over year) on revenue of $2.079 billion (up 8%). (stocktitan.net)
2) The numbers investors are reacting to
Beyond the quarter’s beat, Moody’s increased its 2026 GAAP EPS forecast to $16.00–$16.60 from $15.00–$15.60, while reaffirming adjusted EPS guidance of $16.40–$17.00 and reiterating high-single-digit 2026 revenue growth expectations. Profitability remained strong, with adjusted operating margin expanding to 53.2%, alongside higher cash generation (free cash flow $844 million, up 26%). (stocktitan.net)
3) Capital return and strategic signals
Moody’s also accelerated shareholder returns, deploying $1.7 billion for buybacks and dividends in Q1 and lifting full-year share repurchase guidance to approximately $2.5 billion. The company highlighted continued demand drivers across its businesses, including a strong issuance environment for ratings activity and ongoing momentum in recurring revenue at Moody’s Analytics. (stocktitan.net)
4) What to watch next
Investors will focus on whether the improved GAAP EPS outlook can be sustained as the year progresses and whether issuance tied to large infrastructure buildouts continues to support ratings volumes. Attention will also be on execution in Analytics as subscription growth offsets any variability in transactional revenue. (marketscreener.com)