GuruFocus·Jun 24, 2026
Is MCO Overvalued? DCF Says Worth $268On June 24, 2026, we delve into the DCF analysis for Moodys Corp (MCO), a company currently facing a challenging price performance with a year-to-date decline o
Moody's Corporation(MCO)Earnings, Financials & Key Ratios
MCO•NYSE
$500.49
36.6× P/E·Price updated Jul 7, 2026
SectorFinancial ServicesIndustryFinancial Data & ExchangesSub-IndustryIndexes, Benchmarks and Ratings
AboutMoody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Investors Service and Moody's Analytics. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as and structured finance securities. This segment provides ratings in approximately 140 countries. Its ratings are disseminated through press releases to the public through electronic media, including the internet and real-time information systems used by securities traders and investors. This segment has rated approximately 5,000 non-financial corporates; 3,600 financial institutions; 16,000 public finance issuers; 145 sovereigns; 47 supranational institutions; 459 sub-sovereigns; and 1,000 infrastructure and project finance issuers, as well as 9,100 structured finance deals. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets; and offers subscription based research, data, and analytical products comprising credit ratings, credit research, quantitative credit scores and other analytical tools, economic research and forecasts, business intelligence and company information products, commercial real estate data and analytical tools, and on-line and classroom-based training services, as well as credentialing and certification services. It also offers offshore analytical and research services with learning solutions and certification programs; and software solutions, as well as related risk management services. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.Show more
- EBITDA$3.94B+15.7%
- Net Income$2.46B+19.5%
- EPS (Diluted)13.67+21.4%
- Gross Margin68.15%+2.6%
- EBITDA Margin50.98%+6.2%
- Operating Margin44.77%+6.8%
- Net Margin31.86%+9.7%
- ROE62%+8.5%
MCO Price & Volume
Moody's Corporation (MCO) stock price & volume — 10-year historical chart
Loading chart...
Moody's Demonstrates Resilient Margins Amid Capital Returns
Investment Thesis • Updated 2026Q1
VerdictPositive: The firm's ability to generate $844 million in FCF during 2026Q1 provides a solid foundation for continued shareholder returns
Growth:Expanding
Profitability:Strong
Financial:Healthy
Cash Flow:Robust
Primary Risk:Regulatory and cyclical sensitivity
Key Thesis Takeaways
- Moody's Corporation exhibits a robust business model characterized by high operating leverage, as evidenced by a 74.5% gross margin in 2026Q1, which supports consistent top-line growth from $1.5 billion in 2023Q4 to $2.1 billion in 2026Q1.
- The firm effectively utilizes its strong cash conversion capabilities to fund aggressive capital allocation, including $1.5 billion in share repurchases during 2026Q1, though investors should monitor the $6.3 billion goodwill concentration and potential regulatory risks to the issuer-pay model.
- While the company maintains a healthy liquidity profile, the reliance on debt-funded buybacks warrants caution regarding long-term leverage sustainability.
Verdict Logic
despite the current P/E multiple of 32.92.
MCO Growth Metrics
Moody's Corporation (MCO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years8.28%
5 Years7.52%
3 Years12.17%
TTM-
Profit CAGR
10 Years10.08%
5 Years6.7%
3 Years21.41%
TTM18.47%
EPS CAGR
10 Years11.43%
5 Years7.8%
3 Years22.48%
TTM20.38%
Return on Capital
10 Years27.69%
5 Years22.61%
3 Years23.69%
Last Year27.91%
MCO Recent Earnings
Moody's Corporation (MCO) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 11/12 qtrs (92%)●Beat Revenue 10/12 qtrs (83%)
Q2 2026Latest
Apr 22, 2026Metric
Actual
Est
EPS
$4.33+2.6%
$4.22
Rev
$2.1B+0.5%
$2.1B
Q1 2026
Feb 18, 2026Metric
Actual
Est
EPS
$3.64+6.1%
$3.43
Rev
$1.9B+1.5%
$1.9B
Q4 2025
Oct 22, 2025Metric
Actual
Est
EPS
$3.92+5.9%
$3.70
Rev
$2.0B+2.6%
$2.0B
Q3 2025
Jul 23, 2025Metric
Actual
Est
EPS
$3.56+5.0%
$3.39
Rev
$1.9B+2.6%
$1.8B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 22, 2026 | $4.33vs $4.22+2.6% | $2.1Bvs $2.1B+0.5% |
| Q1 2026 | Feb 18, 2026 | $3.64vs $3.43+6.1% | $1.9Bvs $1.9B+1.5% |
| Q4 2025 | Oct 22, 2025 | $3.92vs $3.70+5.9% | $2.0Bvs $2.0B+2.6% |
| Q3 2025 | Jul 23, 2025 | $3.56vs $3.39+5.0% | $1.9Bvs $1.8B+2.6% |
Based on last 12 quarters of dataView full earnings history →
Latest MCO News
Recent stock market news and headlines for Moody's Corporation (MCO)
Business Wire·Jun 17, 2026
Moody's Launches Decision-Grade AI Skills for Major AI PlatformsNEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) today announced the release of its first set of AI skills – purpose-built, platform-agnostic instruction kits that encode Moody's analytical frameworks and connect AI agents to its decision-grade intelligence. Available across compatible AI platforms beginning with Microsoft 365 Copilot Cowork, Moody's skills enable customers to execute complex analytical workflows through a single natural-language request, with outputs grounded in Mood.
Business Wire·Jun 16, 2026
Moody's Brings Its Decision-Grade Intelligence to Amazon QuickNEW YORK--(BUSINESS WIRE)--Moody's Corporation (NYSE: MCO) today announced that its connected intelligence is now available in Amazon Quick – a personalized, proactive AI assistant – through a dedicated Model Context Protocol (MCP) server. The integration gives customers operating in Amazon Web Services (AWS) direct access to ratings and research from Moody's Ratings, as well as Moody's curated data on more than 600 million public and private entities, including firmographics, ownership, financ.
Peers Comparison
Key metrics vs top competitors for Moody's Corporation (MCO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $500.49 | $88.74B | 36.61 | 8.89% | 31.86% | 62% | 0.78% | |
| $443.46 | $131.26B | 30.25 | 7.94% | 30.37% | 12.92% | — | |
| $258.30 | $9.19B | 16.61 | 5.39% | 23.21% | 26.58% | — | |
| $608.09 | $44.27B | 39.08 | 9.74% | 40.74% | — | — | |
| $136.45 | $77.16B | 23.65 | 7.46% | 29.98% | 13.54% | — | |
| $192.25 | $25.19B | 29.62 | 6.63% | 29.34% | — | — |
Compare MCO vs Peers
Moody's Corporation (MCO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
MCO SEC Filings & Documents
Moody's Corporation (MCO) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
Apr 22, 2026·SEC
Material company update
Apr 16, 2026·SEC
Material company update
Apr 15, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
6Get notified when MCO posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
MCO Frequently Asked Questions
Moody's Corporation (MCO) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Moody's Corporation's revenue?
Moody's Corporation (MCO) reported $7.87B in revenue for fiscal year 2025.
How fast is Moody's Corporation growing?
Moody's Corporation (MCO) grew revenue by 8.9% over the past year. This is steady growth.
Is MCO profitable?
Yes, Moody's Corporation (MCO) is profitable, generating $2.50B in net income for fiscal year 2025 (31.9% net margin).
Dividend & Returns
Does MCO pay dividends?
Yes, Moody's Corporation (MCO) pays a dividend with a yield of 0.78%. This makes it attractive for income-focused investors.
What is MCO's return on equity?
Moody's Corporation (MCO) has a return on equity (ROE) of 62.0%. This is excellent, indicating efficient use of shareholder capital.
What is Moody's Corporation's free cash flow?
Moody's Corporation (MCO) generated $2.99B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.