Moody’s Beats Q4 With 13% Revenue Growth And $3.64 EPS
Moody’s reported Q4 adjusted EPS of $3.64, topping estimates by $0.22, with revenue of $1.889B up 13% year-over-year. Investors Service revenue climbed 17% while Analytics revenue rose 9%, driving operating income to $770M and free cash flow to $2.575B as FY26 EPS guidance topped consensus.
1. Strong Fourth-Quarter Results
Moody’s reported adjusted Q4 EPS of $3.64, beating consensus by $0.22 and driving revenue up 13% to $1.889 billion. Investors Service revenue surged 17% and Analytics revenue rose 9%, led by 12% Decision Solutions growth, underpinning a record quarterly operating margin of 40.8%.
2. Robust Cash Generation
Fourth-quarter operating cash flow reached $2.901 billion and free cash flow hit $2.575 billion as Moody’s maintained a healthy balance sheet with $7 billion of debt and an undrawn $1.25 billion revolving credit facility.
3. Upbeat Guidance and AI Integration
Management set FY26 adjusted EPS guidance at $16.40 to $17.00, exceeding estimates while pivoting to embed decision-grade contextual intelligence across customer workflows and divesting non-core assets to concentrate on high-growth, recurring revenue streams.