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Sep 30, 2025
Moody's Q3 2025 Earnings Report
Moody's delivered strong Q3 2025 results with double-digit revenue and EPS growth, alongside record highs in both its Analytics and Investors Service segments.
Key Takeaways
Moody's posted a robust third quarter, with revenue hitting $2 billion and EPS rising to $3.60. Both core segments—Moody’s Analytics and Moody’s Investors Service—achieved record revenues, driving higher operating margins and profitability.
Revenue reached $2 billion, up from $1.813 billion a year earlier.
EPS grew to $3.60 with adjusted EPS at $3.92, reflecting strong operational performance.
Both Moody’s Analytics and Moody’s Investors Service hit record revenue for the quarter.
Operating and adjusted operating margins expanded significantly, supported by disciplined cost management.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Moody’s raised full-year 2025 guidance, now expecting higher revenue, EPS, and margins, driven by strong performance in both MA and MIS segments.
Positive Outlook
- Adjusted EPS guidance raised to $14.50–$14.75.
- Full-year revenue growth revised to high-single digits.
- Adjusted operating margin expected to reach ~51%.
- MIS revenue guidance raised to high-single-digit growth.
- Free cash flow forecast increased to approximately $2.5B.
Challenges Ahead
- Ongoing macroeconomic uncertainties may impact debt issuance.
- Tax rate volatility due to lapsing indemnities and state taxes.
- Potential FX headwinds in select markets.
- Transaction-based revenue in MA continues to decline.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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