Moody's (NYSE:MCO) Releases FY 2026 Earnings Guidance

Key Points

• Moody’s updated its FY 2026 EPS guidance to $16.50-$17.00, which is roughly in line with analyst expectations of $16.71.
• The company’s most recent quarterly results beat estimates, with EPS of $4.68 versus $4.26 expected and revenue of $2.19 billion versus $2.09 billion expected.
• Analysts remain broadly positive on the stock despite its premium valuation, with a Moderate Buy consensus and an average price target of about $550.58.

Moody's (NYSE:MCO - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 16.500-17.000 for the period, compared to the consensus earnings per share estimate of 16.710. The company issued revenue guidance of -.

Analyst Ratings Changes

MCO has been the subject of a number of analyst reports. Mizuho cut their price objective on shares of Moody's from $524.00 to $521.00 and set a "neutral" rating for the company in a research report on Tuesday, April 28th. BMO Capital Markets increased their price target on shares of Moody's from $489.00 to $515.00 and gave the stock a "market perform" rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. increased their price target on shares of Moody's from $530.00 to $600.00 and gave the stock an "overweight" rating in a report on Monday. Bank of America restated a "buy" rating and issued a $565.00 price objective on shares of Moody's in a research report on Wednesday, April 22nd. Finally, Rothschild & Co Redburn set a $500.00 target price on Moody's in a research report on Thursday, June 18th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $550.58.

Moody's Stock Performance

NYSE:MCO opened at $489.25 on Wednesday. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 2.03. The firm has a 50-day moving average price of $462.39 and a two-hundred day moving average price of $465.09. Moody's has a twelve month low of $402.28 and a twelve month high of $546.88. The company has a market capitalization of $85.47 billion, a P/E ratio of 35.07, a price-to-earnings-growth ratio of 2.59 and a beta of 1.34.

Moody's (NYSE:MCO - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $4.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.26 by $0.42. Moody's had a net margin of 31.69% and a return on equity of 70.97%. The company had revenue of $2.19 billion for the quarter, compared to the consensus estimate of $2.09 billion. Moody's has set its FY 2026 guidance at 16.500-17.000 EPS. As a group, research analysts expect that Moody's will post 16.73 earnings per share for the current fiscal year.

Insider Activity at Moody's

In related news, SVP Richard G. Steele sold 158 shares of the company's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $453.67, for a total value of $71,679.86. Following the sale, the senior vice president owned 1,985 shares of the company's stock, valued at approximately $900,534.95. This represents a 7.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Fauber sold 1,467 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $466.39, for a total value of $684,194.13. Following the sale, the chief executive officer owned 75,189 shares in the company, valued at approximately $35,067,397.71. This trade represents a 1.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 3,250 shares of company stock valued at $1,495,098 over the last 90 days. Insiders own 0.14% of the company's stock.

Key Stories Impacting Moody's

Here are the key news stories impacting Moody's this week:

• Positive Sentiment: JPMorgan raised its price target on Moody’s to $600 from $530 and maintained an overweight rating, signaling confidence in the company’s earnings power and upside potential. Benzinga report on JPMorgan price target hike
• Positive Sentiment: Analyst commentary around Q2 suggests stronger global bond issuance volumes, which could support Moody’s ratings and analytics revenue through higher investment-grade, high-yield, and structured-finance activity.
• Positive Sentiment: Several previews ahead of earnings highlight Moody’s as a financially strong company with solid growth prospects, and analysts are broadly bullish on the stock heading into the report. Article on bullish analyst views
• Neutral Sentiment: Investors are waiting for Moody’s Q2 2026 earnings, with coverage focusing on whether the company can beat estimates and justify its premium valuation. Seeking Alpha earnings preview
• Neutral Sentiment: Moody’s also issued a warning on rising Indonesia risks despite the country’s 2.85% deficit target, but this looks more like a macro risk update than a company-specific catalyst. Yahoo Finance article on Indonesia risks
• Negative Sentiment: Some commentary notes that Moody’s is trading at a rich earnings multiple ahead of its report, which may weigh on the stock if results do not clearly exceed expectations. Motley Fool valuation article

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MCO. Morgan Stanley boosted its stake in shares of Moody's by 2.7% during the 4th quarter. Morgan Stanley now owns 2,370,601 shares of the business services provider's stock worth $1,211,023,000 after purchasing an additional 62,798 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Moody's by 73.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,716,304 shares of the business services provider's stock valued at $876,775,000 after buying an additional 726,971 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in shares of Moody's by 1.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,400,658 shares of the business services provider's stock valued at $715,526,000 after buying an additional 20,779 shares during the period. Windacre Partnership LLC lifted its stake in shares of Moody's by 18.4% during the third quarter. Windacre Partnership LLC now owns 1,164,900 shares of the business services provider's stock valued at $555,052,000 after buying an additional 181,305 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in Moody's by 2.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,111,130 shares of the business services provider's stock worth $567,621,000 after acquiring an additional 21,958 shares during the last quarter. Institutional investors and hedge funds own 92.11% of the company's stock.

Moody's Company Profile

Moody's Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody's is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody's operates primarily through two complementary businesses.

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