Moody’s Reports Strong Q3 2025 Earnings Growth

Moody’s ( (MCO) ) has released its Q3 earnings. Here is a breakdown of the information Moody’s presented to its investors.

Moody’s Corporation is a global integrated risk assessment firm that provides credit ratings, research, tools, and analysis to financial markets. The company operates primarily in the financial services sector, offering insights and innovative technologies to help customers make informed decisions.

In its third-quarter earnings report for 2025, Moody’s Corporation reported strong financial performance, with significant revenue growth across its business segments. The company highlighted its strategic investments and operational efficiencies as key drivers of its success, leading to an upward revision of its full-year earnings guidance.

Moody’s reported a total revenue of $2.0 billion for the third quarter of 2025, marking an 11% increase from the previous year. Moody’s Analytics and Moody’s Investors Service both contributed to this growth, with revenues rising by 9% and 12%, respectively. The company’s diluted earnings per share (EPS) also saw a substantial increase of 23%, reaching $3.60 for the quarter. Additionally, Moody’s adjusted its full-year 2025 EPS guidance to a range of $14.50 to $14.75, reflecting a 17% year-over-year growth at the midpoint.

The company’s operating margin improved significantly, with an adjusted operating margin of 52.9%, up 510 basis points from the prior year. Moody’s attributed this to effective cost management and strategic investments, which offset increases in operating expenses. The company also reported a robust free cash flow of $1.8 billion, despite higher tax and incentive compensation payments.

Looking ahead, Moody’s management remains optimistic about the company’s growth prospects, supported by favorable market conditions and strategic initiatives. The company expects continued revenue growth in the high-single-digit percent range and plans to return at least $1.5 billion to shareholders through share repurchases, subject to market conditions and other capital allocation decisions.