Moody's Corporation (MCO) AI Stock Analysis

Moody's Corporation provides integrated risk assessment services worldwide through two primary segments: Moody's Investors Service and Moody's Analytics. Moody's Investors Service issues credit ratings and assessments on debt obligations from corporations, financial institutions, governments, and structured finance vehicles across approximately 140 countries. Moody's Analytics delivers research, quantitative credit scores, economic analysis, commercial real estate data, business intelligence, and software solutions to institutional participants in financial markets. Founded in 1900 and headquartered in New York City, the company employs 16,000 people and supports risk management through subscription offerings and specialized tools.

Revenue rose from $6.22B in FY2021 to $7.72B in FY2025, reflecting a 5-year revenue CAGR of 7.5% from FY2020 to FY2025. After revenue fell 12.1% in FY2022 to $5.47B, it rebounded with 8.2% growth in FY2023 and 19.8% growth in FY2024 to $7.09B. Operating margin expanded from 36.5% in FY2022 to 44.8% in FY2025, while net income climbed to $2.46B. For the trailing twelve months, revenue reached $8.16B with a profit margin of 34.2%. In the latest quarter ended June 30, 2026, quarterly revenue increased 15.1% year-over-year, and quarterly earnings grew 56.7%.

As of June 30, 2026, Moody's held $1.50B in cash and short-term investments alongside total debt of $7.52B, resulting in net debt of $6.03B. Shareholders' equity stood at $3.02B against total assets of $14.68B, yielding a debt-to-equity ratio of 2.49 and a current ratio of 1.19. In FY2025, operating cash flow generated $2.90B and free cash flow was $2.58B after capital expenditures of $326.0M. The company directed capital toward $1.71B in share buybacks and $701.0M in dividends paid.

MCO trades at a trailing P/E of 30.8x and a forward P/E of 24.3x, both above the median of its S&P 500 Financial Services peers, which trade at 14.2x and 12.2x respectively. The stock's price-to-sales ratio of 10.3x and EV/EBITDA of 20.2x also exceed the peer medians of 3.1x and 15.1x. The company's operating margin of 49.5% stands above the peer median of 33.1%. Over the 1-year period, MCO gained 4.4% compared to 16.8% for the S&P 500, and over 5 years returned 36.4% versus 83.0% for the index.

Moody's pays a quarterly dividend with an annualized forward payout of $4.12 per share, representing a dividend yield of 0.85% and a payout ratio of 24.3%. The company has paid dividends for 33 consecutive years. Over the last five years, its dividend grew at an annualized rate of 10.9%. The most recent ex-dividend date was August 14, 2026.

Wall Street coverage includes 13 Strong Buy, 5 Buy, and 6 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $551.38, which is 13.7% above the last close of $485.07. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $8.28B and EPS of $16.92, representing 13.3% EPS growth. Moody's has beaten EPS estimates in each of the last 4 quarters, with the next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of Moody's Corporation (MCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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