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Jun 30, 2025
Moody's Q2 2025 Earnings Report
Moody's reported solid Q2 2025 results with strong recurring revenue growth and improved margins.
Key Takeaways
Moody’s delivered higher revenue and earnings in Q2 2025, supported by growth in Moody’s Analytics and disciplined cost management, despite flat performance in Moody’s Investors Service.
Revenue grew 4% year-over-year to $1.9 billion
Adjusted operating margin expanded to 50.9%
Net income increased to $579 million
Strong recurring revenue growth in Moody’s Analytics
Revenue by Segment
Forward Guidance
Moody’s updated its full-year guidance, raising the midpoint of adjusted EPS and maintaining its growth outlook for both MA and MIS.
Positive Outlook
- Adjusted EPS guidance narrowed to $13.50–$14.00
- MA revenue expected to grow in the high-single-digit range
- MIS revenue expected to grow in the low- to mid-single-digit range
- Operating margin expected at 42% to 43%
- Strong demand for high-quality credits supports issuance volumes
Challenges Ahead
- Global high-yield default rate expected to rise to ~3.6% by year-end
- U.S. inflation still elevated at 2.5%–3.5%
- MIS revenue growth reliant on supportive market conditions
- Financial Institutions issuance remains below prior-year levels
Historical Earnings Impact
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Avg. Return Before/After Earnings
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