Moody's Corp Reports Strong 2025 Performance

By Chris Stiles • Wednesday, February 18 11:43 • Permanent Link

Moody's Corporation (NYSE: MCO) has reported a strong performance for the fourth quarter and full year of 2025. The company's revenue for the fourth quarter of 2025 was $1.9 billion, showing an impressive 13% increase from the prior-year period. The full-year revenue for 2025 stood at $7.7 billion, representing a robust 9% increase from the previous year.

Moody's Analytics (MA) also demonstrated significant growth, with revenue increasing by 9% in the fourth quarter of 2025 compared to the same period in the prior year. The full-year revenue for MA in 2025 grew by 9% as well. Notably, recurring revenue, which comprised 97% of total MA revenue, saw a remarkable 11% growth in the fourth quarter and full year.

Moody's Investors Service (MIS) reported a remarkable 17% increase in revenue for the fourth quarter of 2025 compared to the prior-year period. The full-year revenue for MIS grew by 9%, marking a record year for the segment.

Moody's Corporation's diluted earnings per share (EPS) for the fourth quarter of 2025 showed a substantial increase of 57%, reaching $3.41. The adjusted diluted EPS for the same period also saw a significant growth of 39%, amounting to $3.64. For the full year of 2025, the company's adjusted diluted EPS grew by 20% to $14.94.

Looking ahead, Moody's Corporation has set a positive outlook for the full year of 2026, projecting a revenue range between $15.00 billion to $15.60 billion and adjusted diluted EPS in the range of $16.40 to $17.00.

The company's operating expenses for the full year of 2025 increased by 4% from the prior-year period, primarily driven by investment and operational spending, as well as acquisition-related costs. However, for the full year of 2026, Moody's Corporation forecasts a mid-single-digit percent increase in operating expenses, remaining below the expected rate of revenue growth and reflecting operating leverage.

The market has reacted to these announcements by moving the company's shares -0.13% to a price of $538.92. Check out the company's full 8-K submission here.

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