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Credit rating agency Moody's (NYSE:MCO) announced in Q2 CY2026, with sales up 15.1% year on year to $2.19 billion. Its non-GAAP profit of $4.68 per share was 10% above analysts’ consensus estimates.
Is now the time to buy Moody's? Find out by accessing our full research report, it’s free.
Moody's (MCO) Q2 CY2026 Highlights:
・Revenue: $2.19 billion vs analyst estimates of $2.08 billion (15.1% year-on-year growth, 4.8% beat)
・Pre-tax Profit: $1.17 billion (53.6% margin)
・Adjusted EPS: $4.68 vs analyst estimates of $4.25 (10% beat)
・Management reiterated its full-year Adjusted EPS guidance of $16.70 at the midpoint
・Market Capitalization: $85.73 billion
Company Overview
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Moody’s 7.1% annualized revenue growth over the last five years was mediocre. This wasn’t a great result compared to the rest of the financials sector, but there are still things to like about Moody's.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Moody’s annualized revenue growth of 11.6% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Moody's reported year-on-year revenue growth of 15.1%, and its $2.19 billion of revenue exceeded Wall Street’s estimates by 4.8%.
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Key Takeaways from Moody’s Q2 Results
We enjoyed seeing Moody's beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. However, the company just maintained full-year EPS guidance, not flowing through the beat. This seemed to disappoint, and shares traded down 1.1% to $485.35 immediately after reporting.
So should you invest in Moody's right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
