Moody’s Corporation (NYSE: MCO) reported consolidated revenue of $1.9 billion for the fourth quarter of 2025, a 13% increase from the same period in the prior year. Net income attributable to Moody’s Corporation for the quarter was $610 million, compared with $395 million in the fourth quarter of 2024, representing a 54% increase.

Quarterly Results by Segment

Moody’s Investors Service (MIS): Revenue for the MIS segment was $946 million, a 17% increase over the prior-year period. This segment accounted for 50% of total quarterly revenue. Within MIS, Corporate Finance revenue grew 26% to $480 million, and Public, Project and Infrastructure Finance revenue increased 30% to $149 million.

Moody’s Analytics (MA): The MA segment reported revenue of $943 million, a 9% increase compared to the fourth quarter of 2024. Recurring revenue represented 97% of total MA revenue. Decision Solutions revenue grew 12% to $450 million, while Research & Insights revenue increased 6% to $258 million.

Full-Year 2025 Results Context

For the full year 2025, Moody’s reported record revenue of $7.7 billion, a 9% increase from $7.1 billion in 2024. Annual net income was $2.46 billion, compared to $2.06 billion in the prior year. Operating trends showed growth across both primary business segments for the full year, with MIS revenue up 9% and MA revenue up 9%.

Business & Operations Update

Moody’s announced the divestiture of its Learning Solutions business within the MA segment. The company also reported a strategic shift in MA towards subscription-based solutions, resulting in a 30% decline in transaction revenue for that segment.

In October 2025, the Board of Directors authorized a $4.0 billion share repurchase program. On February 10, 2026, the company declared a quarterly dividend of $1.03 per share, payable in March 2026.

M&A and Strategic Moves

The company finalized the divestiture of the MA Learning Solutions business. Cash received from the divestiture, net of cash transferred, was $40 million. The results also reflect the impact of prior acquisitions, including Praedicat and GCR.

Guidance & Outlook

For the full year 2026, Moody’s issued the following guidance:

Revenue: High-single-digit percent increase.
Operating Expenses: Mid-single-digit percent increase.
Adjusted Diluted EPS: $16.40 to $17.00.
Free Cash Flow: $2.8 billion to $3.0 billion.

Factors to watch include global GDP growth, projected at 2.0% to 3.0%, and anticipated Federal Funds Rate cuts in 2026.

Performance Summary

Moody’s reported $1.9 billion in quarterly revenue and $3.41 diluted EPS. MIS revenue increased by 17% while MA revenue increased by 9%. Full-year revenue reached $7.7 billion. The company issued an adjusted diluted EPS guidance range of $16.40 to $17.00 for 2026.

 

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