Moody's (DUT) AI Stock Analysis

Moody's

(XETRA:DUT)

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Positive Factors

Recurring Analytics RevenueThe Analytics segment’s high recurring mix, strong retention, and ARR growth provide durable revenue visibility beyond debt-market issuance cycles. Embedded data and software workflows can deepen customer relationships, support cross-selling, and improve the resilience of consolidated earnings over the next several quarters.

Negative Factors

Elevated and Rising LeverageHigher leverage reduces financial flexibility and makes the business more sensitive to weaker operating conditions or refinancing pressure. Although cash generation is strong, rising debt relative to equity can constrain capital allocation and amplify downside if issuance activity deteriorates.

Moody's (DUT) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 85.17B
Dividend Yield: 0.78%
Average Volume (3M): 30
Price to Earnings (P/E): 30.0
Beta (1Y): 0.72
Revenue Growth: 3.68%
EPS Growth: 25.68%
Country: Germany
Employees: 15,636
Sector: Financial
Sector Strength: 68
Industry: Financial - Data & Stock Exchanges

Moody's Business Overview & Revenue Model

Company Description

Moody's Corporation operates as a global leader in risk assessment, divided into two main segments: Moody's Investors Service and Moody's Analytics. Moody's Investors Service is dedicated to issuing credit ratings and providing detailed assessments f...

Moody's Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:3.97%|Next Earnings Date:Feb 04, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Moody's reported strong profitability, recurring revenue growth, record or near-record activity in several ratings areas, accelerating AI adoption, expanding customer relationships, strong cash generation, and reaffirmed full-year guidance. These strengths were partly offset by declines in overall issuance, leveraged finance, MIS transaction revenue, MA transactional revenue, and the expected mid-teens fourth-quarter issuance decline, along with macro and market-volatility risks.

Positive Updates

Strong Quarterly Profitability and Earnings Growth

Moody's topped $2 billion in revenue for the third straight quarter and built on a record quarter from last year. Despite overall rated issuance declining 2%, adjusted operating margin was 52.6% and adjusted diluted EPS grew 6%.

Negative Updates

Overall Rated Issuance Declined

Overall rated issuance declined 2% year-over-year to approximately $1.7 trillion, reflecting softer activity in certain asset classes despite remaining the second-highest third-quarter level on record.

Company Guidance

Moody’s reaffirmed its full year guidance, including overall issuance growth at mid-single digit percent growth, MIS revenue growth in the high single-digit percent range, MA ARR growth in the high single-digit percent range and adjusted operating margin of 34%-35%, and MCO revenue growth in the high single digit % range, adjusted operating margin of 52%-53%, and adjusted diluted EPS of $16.50-$17, representing 12% growth at the midpoint; MIS fourth quarter issuance is expected to decline in the mid-teens percent versus the prior year, with MIS revenue declining sequentially versus the third quarter while growing in the low single-digit percent range versus the prior year, and full year first time mandates guidance was raised to a range of 900 to 950; full year expense growth is expected to be mid-single digit %, share repurchases are expected to be up to $3 billion, and Moody’s remains on track to return more than 130% of free cash flow to shareholders this year.

Moody's Risk Analysis

Moody's disclosed 18 risk factors in its most recent earnings report. Moody's reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Moody's Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

DE:DUT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	79Outperform	$135.25B	27.74	17.54%	0.83%	5.99%	22.20%
TRU	78Outperform	$14.64B	18.50	19.22%	0.64%	13.45%	92.34%
MORN	76Outperform	$8.39B	19.63	41.54%	0.88%	9.43%	30.27%
FDS	74Outperform	$11.62B	22.54	25.61%	1.37%	6.65%	-7.20%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	66Neutral	$44.57B	33.16	-49.71%	1.28%	12.33%	19.69%

* Financial Sector Average

Performance Comparison

DE:DUT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:DUT	Moody's	445.00	32.61	7.91%
FDS	Factset Research	329.57	69.65	26.80%
SPGI	S&P Global	466.55	0.58	0.13%
MORN	Morningstar	226.19	15.20	7.21%
MSCI	MSCI Inc	623.38	50.50	8.82%
TRU	TransUnion Corp.	76.79	-4.29	-5.29%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Moody's AI Stock Analysis