EarningsQ2 2026 Earnings Report
GB:0K36 Q2 2026 EPS Results
Actual EPS$4.68
Consensus EPS$4.26
Beat/MissBeat by +$0.42
One Year Ago EPS$3.56
GB:0K36 Q2 2026 Revenue Results
Actual Revenue$2.19B
Expected Revenue$2.09B
Beat/MissBeat by +$97.69M
YoY Revenue Growth+15.12%
Earnings Announcement Details
QuarterQ2 2026
Date07/22/2026
TimeBefore Open
Conference CallWednesday, July 22, 2026
GB:0K36 Upcoming Earnings
Moody's's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
GB:0K36 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong set of operational and financial results: robust top-line and bottom-line growth, substantial margin expansion, ARR and recurring revenue momentum, significant free cash flow and accelerated capital return commitments, plus notable product wins and strategic partnerships. Management qualified the quarter's upside by noting a revenue-mix effect (more issuance in lower-yield segments) and maintained conservative near-term revenue cadence and guidance, while expanding a restructuring program that creates short-term costs for longer-term savings. Overall the positives — broad-based growth across MIS and MA, margin and cash-flow strength, and clear go-to-market and AI integration momentum — materially outweigh the headwinds related to mix, migration execution, and conservative H2 cadence.Company Guidance
Strong Enterprise Financial Performance
Revenue grew 15% year over year; adjusted operating income increased 25%; adjusted operating margin expanded 440 basis points to 55.3%; adjusted diluted EPS rose 31% to $4.68 for the quarter. Full-year adjusted diluted EPS range midpoint raised to $16.75 (guidance updated to $16.50–$17.00).
Moody's Investor Service (MIS) Outperformance
Rated issuance exceeded $2 trillion for the second consecutive quarter (up ~33% YoY and ~20% year-to-date); ratings revenue grew ~25% YoY and transaction revenue growth in key areas (speculative grade +35%, bank loans +30%). MIS adjusted operating margin expanded to ~68.3% (up ~410 bps YoY). First-time mandates increased ~45%, tracking toward 750–850 for the year.
Moody's Analytics (MA) Recurring Revenue Strength
ARR reached approximately $3.7 billion, up nearly 9% YoY with trailing 12-month retention of 95%. MA adjusted operating margin expanded 150 basis points to 33.6%. Recurring revenue represented ~99% of MA revenue and grew 7% reported (9% on an organic constant currency basis).
Cash Generation and Capital Return
Free cash flow was $688 million in the quarter (up 47% YoY). Year-to-date share repurchases of ~$2.2 billion and full-year buyback guidance increased to up to $3.0 billion. Full-year free cash flow guidance adjusted to $2.7–$2.9 billion and the company expects to return >130% of free cash flow to shareholders this year.
Operational and Strategic Actions
Extended restructuring program envelope by $100 million through year-end 2027; full program expected to yield $300–$350 million of annualized savings when complete. Selected full-year guidance metrics (rated issuance and capital return) raised and adjusted diluted EPS range narrowed.
Commercial Wins and Product Integrations
Notable transactions and deals: rated ~ $4 billion Beacon Point data center financing; rated BlackRock's $2.6 billion tokenized money market fund; sole agency on an IFC emerging markets CLO; re-entered insurance-linked securities with a €100 million flood cat bond. Major partnerships and integrations: Amazon QuickSight, AWS Marketplace listing for IRP, Microsoft 365 Copilot AI skill, Solana token integration via AlphaLedger.
Customer Momentum and Use-Case Traction
Large MA customer wins and expansions: ARR up ~60% with a top-3 US auto & property insurer; ARR +12% with a top Lloyd's insurer; APAC life insurer more than doubled ARR. Banking examples include an enterprise-grade AI early-warning deployment across 19 countries (resulting in 20% ARR growth) and an 8% ARR uplift with a regional bank after a merger integration.
Data and AI Advantage
Proprietary data estate covers >630 million entities and ownership linkages heavily used in KYC. AI-powered screening solutions reduced false positives by ~50%, improving compliance efficiency and reducing costly alerts. MCP/SmartAPI adoption and initial AI integrations showing early commercial traction.
GB:0K36 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed