Q2 2026 Moody's Corp Earnings Call Transcript
Key Points
- Moodys Corp (MCO) achieved a 15% revenue growth and a 25% increase in adjusted operating income in the second quarter.
- The company expanded its adjusted operating margin by 440 basis points to 55.3%.
- Moody's Investors Service saw transaction revenue grow by 34%, rating over $2 trillion of debt for the second consecutive quarter.
- Moody's Analytics reported an ARR of approximately $3.7 billion, up nearly 9% from the prior year, with a strong retention rate of 95%.
- The company raised select full-year 2026 guidance metrics, including rated issuance expectations and capital return guidance, increasing the midpoint of the adjusted diluted EPS range to $16.75.
- Transactional revenue in Moody's Analytics declined by 72% year-over-year, consistent with a deliberate portfolio repositioning.
- The issuance upside was less revenue accretive due to a mix that included more data center and financial institution transactions, which carry lower average yields.
- The second half of 2025 presents a tough comparison due to a robust performance in the previous year.
- There is a risk of geopolitical volatility and potential disruptions to global energy flows, which could impact inflation expectations and M&A activity.
- The company is expanding its restructuring program, which is expected to result in annualized savings but also indicates ongoing organizational adjustments.
Good day, everyone, and welcome to the Moody's Corporation second quarter 2026 earnings call. At this time, I would like to inform you that this conference is being recorded (Operator Instructions)
This call is scheduled to last approximately one hour. I will now turn the call over to Shivani Kak, Head of Investor Relations. Shivani, please go ahead.
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Thank you. Hello, and thank you for joining us today. I'm Shivani Kak, Head of Investor Relations at Moody's. This morning, we reported our second quarter results. The press release and today's presentations 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 MD&A in our most recent Form 10-K and other SEC
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