Moody’s (MCO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered record results with revenue of $2.08 billion, up 8% year-over-year, and strong performance in both MIS and MA segments.

• Adjusted diluted EPS rose 13% to $4.33, and adjusted operating margin expanded 150 basis points to 53.2%.

• Returned $1.7 billion to shareholders via buybacks and dividends, with full-year buyback guidance raised by $500 million to $2.5 billion.

• MA segment delivered 250bps margin expansion and 8% ARR growth to $3.6 billion, with retention improving to 95%.

• Christina Kosmowski named CEO of Moody's Analytics, effective June 2026.

Financial highlights

• Total Q1 2026 revenue: $2,079 million, up from $1,924 million in Q1 2025.

• Adjusted operating income: $1,105 million (Q1 2026), up from $994 million (Q1 2025).

• Free cash flow was $844 million, up 26% year-over-year.

• MIS delivered record rated issuance surpassing $2 trillion, with investment-grade revenue up 33% and speculative-grade revenue up 31% year-over-year.

• MA recurring revenue grew 11% year-over-year; organic constant currency recurring revenue up 7%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: high single-digit percent revenue growth, adjusted operating margin 52–53%, and adjusted diluted EPS of $16.40–$17.00.

• Free cash flow guidance: $2.8–$3.0 billion.

• MA revenue and ARR expected to grow in the mid- to high-single-digit percent range.

• Guidance incorporates the expected impact of the pending divestiture of the MA Regulatory Solutions business.

• Share repurchases targeted at $2.5 billion for 2026.