MOODY'S Q1 2026 – REVENUE UP 8%, EARNINGS RISE 13%

By Chris Stiles • Wednesday, April 22 10:33 • Permanent Link

Moody’s Corporation posted first-quarter 2026 revenue of $2.079 billion, up 8% from $1.924 billion a year earlier. Operating margin edged up to 44.3% from 44.0%, while adjusted operating margin widened to 53.2% from 51.7%, a gain of 150 basis points.

Diluted earnings per share rose 8% to $3.73 from $3.46. Adjusted diluted EPS increased 13% to $4.33 from $3.83.

Operating cash flow climbed 24% to $939 million from $757 million, and free cash flow increased 26% to $844 million from $672 million.

Moody’s returned $1.7 billion to shareholders in the quarter, including $1.5 billion in share repurchases and $185 million in dividends. That compares with the company’s raised full-year share repurchase target of about $2.5 billion, up from roughly $2.0 billion previously.

By segment, Moody’s Analytics revenue rose 8% to $926 million from $859 million. Organic constant-currency revenue increased 6% to $899 million from $845 million. Annualized recurring revenue advanced 8% to $3.607 billion from $3.343 billion. Moody’s Analytics adjusted operating margin expanded to 32.5% from 30.0%, a 250-basis-point increase.

Recurring revenue in Moody’s Analytics increased 11% to $909 million from $822 million, while transaction revenue fell 54% to $17 million from $37 million.

Moody’s Investors Service revenue increased 8% to $1.153 billion from $1.065 billion, the highest first quarter on record. Ratings revenue rose 8% to $1.140 billion from $1.056 billion. Transactional revenue increased 8% to $790 million from $732 million. Adjusted operating margin in the unit widened to 66.7% from 66.0%.

Within Moody’s Investors Service, corporate finance revenue climbed 12% to $633 million from $564 million. Public, project and infrastructure finance rose 8% to $176 million from $163 million. Financial institutions revenue increased 2% to $194 million from $191 million. Structured finance slipped 1% to $137 million from $138 million.

Moody’s updated full-year 2026 diluted EPS guidance to $16.00 to $16.60 from a prior range of $15.00 to $15.60. The company also lifted its share repurchase outlook to approximately $2.5 billion from about $2.0 billion. Revenue growth guidance remains in the high-single-digit percentage range. Following these announcements, the company's shares moved 0.99%, and are now trading at a price of $432.28. For more information, read the company's full 8-K submission here.

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