Moody’s Corporation reported fourth‑quarter and full‑year 2025 results that exceeded analyst expectations, with revenue of $1.889 billion and adjusted earnings per share of $3.64—$0.18 above the consensus estimate of $3.46. The quarter’s revenue was 13% higher than the $1.67 billion reported in Q4 2024, while adjusted EPS rose 39% from $2.62 in the same period last year. For the full year, Moody’s generated $7.718 billion in revenue, up 9% from $7.088 billion in 2024, and reported adjusted diluted EPS of $14.94, a 20% increase over the $12.47 recorded in 2024.
The earnings release highlighted a 17% year‑over‑year increase in Moody’s Investors Service revenue, driven by a record 17% rise in debt‑issuance‑related ratings work. The Analytics segment also contributed to the top‑line growth, with higher demand for AI‑enabled data products and expanded private‑credit analytics. The mix shift toward higher‑margin services helped lift the company’s overall revenue mix and supported the margin expansion seen in the quarter.
Moody’s adjusted operating margin for the full year reached 51.1%, up from 43.8% in 2024. The lift was largely attributable to the higher proportion of high‑margin analytics contracts and the continued operational leverage that comes with scaling the AI platform. While operating expenses increased modestly due to investments in technology and talent, the company’s cost discipline and pricing power in the ratings business offset those increases, enabling the margin expansion.
Management guided for 2026 revenue growth in the high‑single‑digit range and projected adjusted operating margins of 52% to 53%. Adjusted diluted earnings per share were forecast at $16.40 to $17.00, a range that exceeds the consensus estimate of $16.47. The guidance signals confidence in sustained demand for Moody’s AI‑enabled products and a continued expansion of its private‑credit analytics offering.
"Our 2025 results demonstrate the tremendous demand for Moody’s solutions and our ability to execute with precision and speed. We delivered record revenue of $7.7 billion and diluted and adjusted diluted EPS growth of 21% and 20%, respectively. By scaling decision grade, contextual intelligence that is embedded directly into customer workflows—across our platforms, third‑party systems, and AI‑enabled interfaces, we are expanding the ways in which Moody’s remains central to high‑stakes decision making," said Rob Fauber, President and Chief Executive Officer.
Investors welcomed the results, citing the earnings beat, the strong 2026 guidance, and the record revenue growth in the Investors Service segment as key drivers of the positive market reaction.
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