Earnings Call
Jul 22, 2026
Q2 FY2026
EPS Estimate
4.26
EPS Actual
4.68
Post-Earnings Close
$489.70
Earnings Reaction
-0.2%
Moody's Corporation posted a standout second quarter for 2026, with adjusted diluted EPS of $4.68, well ahead of the $4.26 consensus estimate, driven by a 15% enterprise revenue increase, 440 basis points of adjusted operating margin expansion to 55.3%, and 25% adjusted operating income growth. The breadth of outperformance across both divisions was the defining feature of the quarter, with neither segment carrying the other. Rated issuance exceeded $2 trillion for the second consecutive quarter, up 33% year-over-year, and MIS transaction revenue surged 34% with adjusted operating margin reaching 68.3%, up 410 basis points. Moody's Analytics, meanwhile, grew ARR to approximately $3.7 billion, up nearly 9% year-over-year, with trailing 12-month retention holding at 95% and adjusted operating margin expanding 150 basis points to 33.6%.
Report generated on Jul 22, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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