Moody's Q3 revenue rises 1%, but misses estimates
MCO•Moody's Q3 revenue rose 1% to $2.02 billion, below the $2.08 billion consensus estimate, while adjusted EPS increased 6% to $4.14, also missing estimates. The company reaffirmed its 2026 diluted EPS guidance of $16.00 to $16.50 and adjusted diluted EPS outlook of $16.50 to $17.00.
1. Quarterly results
Moody's reported Q3 revenue of $2.02 billion, below analysts' $2.08 billion estimate. Adjusted EPS increased 6% year over year to $4.14, missing the $4.26 consensus estimate.
2. Outlook and revenue drivers
The company reaffirmed its 2026 diluted EPS guidance of $16.00 to $16.50 and maintained its adjusted diluted EPS outlook of $16.50 to $17.00. Lower leveraged finance issuance contributed to a decline in MIS revenue, while investment grade revenue rose 18% on strong large corporate financing, especially in technology and AI-related sectors. Recurring revenue in Moody's Analytics rose 6% and made up nearly all of MA revenue.
