Moodys (MCO) Stock
Global credit ratings leader with strong recurring data revenue. Here's the price, business snapshot, and what's worth knowing about Moodys in October 2026.
Moody's Corporation (MCO) is a global provider of credit ratings, research, risk analysis and data-driven analytics. Investors should note its business model mixes recurring subscription-like revenues from analytics and data with fees from credit ratings, producing strong margins and robust cash flow. Moody's benefits from scale and regulatory reliance on its ratings, giving it a durable competitive position, but it is not immune to economic cycles: issuance volumes and corporate activity can affect near-term revenue. The company also invests in technology and data products to grow recurring streams, while returning capital through dividends and buybacks. Key risks include regulatory scrutiny, litigation, competition from other ratings agencies and data providers, and sensitivity to global credit markets. This summary is for educational purposes only and not personalised investment advice; values can fall as well as rise and past performance is not a guarantee of future results.
Why It’s Moving
Moody's Q3 Earnings Miss Estimates as Valuation Concerns Mount
- Adjusted earnings of $4.14 per share missed the Zacks Consensus Estimate of $4.25, despite a year-over-year increase from $3.92, signaling cost pressures and softer transaction revenues.
- Revenue growth decelerated significantly, rising just 1% year-over-year, with transaction revenues declining by 5%, reflecting weaker fundamentals compared to prior periods.
- Analysts highlighted a disconnect between the stock's nearly 30x forward P/E multiple and its muted growth prospects, noting that while AI infrastructure issuance increased fourfold, it does not fully offset the broader slowdown in rated issuance.
Moody's Q3 Earnings Miss Estimates as Valuation Concerns Mount
- Adjusted earnings of $4.14 per share missed the Zacks Consensus Estimate of $4.25, despite a year-over-year increase from $3.92, signaling cost pressures and softer transaction revenues.
- Revenue growth decelerated significantly, rising just 1% year-over-year, with transaction revenues declining by 5%, reflecting weaker fundamentals compared to prior periods.
- Analysts highlighted a disconnect between the stock's nearly 30x forward P/E multiple and its muted growth prospects, noting that while AI infrastructure issuance increased fourfold, it does not fully offset the broader slowdown in rated issuance.
Sixth Month Growth Performance
When is the next earnings date for MOODYS CORP (MCO)?
The next earnings date for MCO has not been confirmed yet. Based on the company's historical reporting pattern of quarterly releases, the upcoming report is expected in January 2027. This anticipated release will cover the fourth quarter of fiscal year 2026.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Moody's stock with a target price of $520.39, indicating growth potential.
Financial Health
Moody's Corp is performing well with strong profits, cash flow, and revenue generation.
Dividend
Moody's Corp's dividend yield of 0.83% is relatively low, making it less attractive for dividend-seeking investors. If you invested $1000 you would be paid $8.30 a year in dividends (based on the last 12 months).
Why You’ll Want to Watch This Stock
Recurring Revenue Strength
Ratings and subscription services provide predictable cash flow and high margins, though revenues can vary with market activity.
Global Franchise & Moat
Scale and regulatory reliance support a durable position, but regulatory oversight and competition remain important considerations.
Data & Analytics Growth
Investment in data products and software offers longer‑term growth potential, while execution and competitive pressures influence outcomes.
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