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Mar 31, 2025
Moody's Q1 2025 Earnings Report
Moody’s reported strong Q1 2025 results with record revenue in its Ratings segment and robust performance across both business units.
Key Takeaways
Moody’s delivered an 8% year-over-year revenue increase in Q1 2025, driven by strength in its Investors Service segment and recurring revenue from Analytics. Adjusted EPS rose 14%, reflecting growth in net income and operating efficiency.
Revenue grew to $1.924 billion, up from $1.786 billion in Q1 2024.
Net income increased to $625 million, up from $577 million last year.
Moody’s Investors Service achieved record quarterly revenue at $1.065 billion.
Adjusted operating margin expanded to 51.7% driven by disciplined expense management.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Moody's adjusted its FY25 guidance to reflect market volatility, projecting mid-single-digit revenue growth and adjusted EPS between $13.25 and $14.00.
Positive Outlook
- Raised full-year Adjusted EPS guidance to $13.25–$14.00.
- Recurring revenue for Moody's Analytics expected to continue growing at 9%.
- MIS Adjusted Operating Margin projected at 61%–62%.
- Strong cash position with $2.14 billion in cash and equivalents.
- Share repurchases of at least $1.3 billion planned.
Challenges Ahead
- Lower U.S. GDP growth assumption revised to 0.0%–1.0%.
- Global rated issuance expected to decline in low-to-high single digits.
- Full-year revenue growth now forecast in mid-single-digit range.
- U.S. inflation expected to average 3.5%–4.5%, higher than previously forecast.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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