Q1 2026 Moody's Corp Earnings Call Transcript
Key Points
- Moodys Corp (MCO) reported strong financial performance with both MIS and MA growing revenues by 8%, and adjusted operating margin increasing by 150 basis points to 53.2%.
- The company returned $1.7 billion through buybacks and dividends in the quarter and increased full-year buyback guidance by $500 million to approximately $2.5 billion.
- Demand remains healthy across both businesses, with ratings issuance reflecting long-term funding needs tied to infrastructure, technology, private credit, and energy transition.
- Moody's Analytics is embedding its intelligence into mission-critical workflows, leading to higher retention, expanding relationships, and more durable recurring revenue.
- The company is executing on strategic priorities, including partnerships that extend distribution without compromising governance or independence, and integrating Moody's intelligence into enterprise AI environments.
- Transactional revenue in Moody's Analytics declined materially, down 54% year-over-year, reflecting the learning divestiture and focus on scalable recurring revenue streams.
- Volatility in the market may affect the timing of ratings issuance, although the underlying demand is structural.
- The geopolitical backdrop, including the war in Iran, poses potential risks to market stability and could impact issuance levels.
- There is heightened sensitivity and regulatory scrutiny around the use of AI in decision-making processes, which could slow adoption.
- The company faces challenges in maintaining growth momentum in certain areas, such as the RAG product portfolio, which experienced more modest growth.
Good day, everyone, and welcome to the Moody's Corporation first quarter 2026 earnings call. At this time, I would like to inform you that this conference is being recorded (Operator Instructions). The call is scheduled to last approximately one hour. I will now turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.
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Hello, and thank you for joining us today. I'm Shivani Kak, Head of Investor Relations at Moody's. This morning, we reported our first quarter 2026 results. The press release and today's presentation are posted at ir.moodys.com. We'll reference non-GAAP or adjusted measures, please see the tables in our earnings release for reconciliations to US GAAP.
Today's remarks may include forward-looking statements under the Private Securities Litigation Reform Act of 1995, please see the safe harbor language in our earnings release and the risk factors and the MD&A in our most recent Form 10-K and other SEC filings available on our
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