Moody's Q3 revenue rises 1%, but misses estimates

Moody's

Yesterday 12:09

Overview
Credit ratings and analytics firm missed analysts' expectations for Q3 revenue
Adjusted EPS increased 6% yr/yr, but missed analysts' expectations
Company reaffirmed full-year 2026 guidance

Outlook
Moody's reaffirms 2026 diluted EPS guidance of $16.00 to $16.50
Company maintains 2026 adjusted diluted EPS outlook at $16.50 to $17.00

Result Drivers
LEVERAGED FINANCE WEAKNESS - Lower leveraged finance issuance led to a decline in MIS revenue
TECH SECTOR ACTIVITY - Investment grade revenue rose 18% on strong large corporate financing, especially in technology and AI-related sectors
RECURRING REVENUE GROWTH - Recurring revenue in Moody's Analytics rose 6% and made up nearly all MA revenue

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$2.02 bln
$2.08 bln (19 Analysts)
Q3 Adjusted EPS
Miss
$4.14
$4.26 (22 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy"
Wall Street's median 12-month price target for Moody's Corporation is $560.00, about 17.8% above its October 20 closing price of $475.35
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads
Oct 20 - MSCI Q3 adj EPS rises, beats estimates
Oct 20 - Germany's Deutsche Boerse Q3 net revenue rises, lifts FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release https://www.sec.gov/Archives/edgar/data/1059556/000162828026066594/a3q26earningsrelease.htm
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)