Moody's Corporation operates as an integrated risk assessment firm worldwide. It operates in two segments, Moody's Analytics and Moody's Investors Services. The Moody's Analytics segment develops a range of products and services that support the risk management activities of institutional participants in financial markets. It also offers credit research, credit models and analytics, economics data and models, and structured finance solutions; data sets on companies and securities; and SaaS solutions supporting banking, insurance, and know your customer workflows. The Moody's Investors Service segment publishes credit ratings and provides assessment services on various debt obligations, programs and facilities, and entities that issue such obligations, such as various corporate, financial institution, and governmental obligations, as well as structured finance securities. The company was formerly known as Dun and Bradstreet Company and changed its name to Moody's Corporation in September 2000. Moody's Corporation was founded in 1900 and is headquartered in New York, New York.

Moody’s appears to be a high-quality business, but one that is already valued very expensively, so the fundamentals are more likely to limit upside potential than to support it. In terms of profitability, the company is strong: ROE of 64.11%, ROA of 16.24%, ROI of 23.26%, while net profit margin of 31.69% and operating margin of 43.53% have been steadily improving and are well above industry benchmarks. Revenue, gross profit, EBITDA, operating profit, and net profit are all at high levels and generally show positive year-over-year trends, confirming the quality of the business model and its pricing power. At the same time, gross margin is around the industry median, meaning the main source of advantage is not raw materials or cost of goods sold, but scale, brand strength, and high operating efficiency. The main limiting factor is valuation: P/E of 35.21, P/S of 11.17, P/B of 27.28, and P/FCF of 31.96 are significantly above the industry median, which already prices in strong expectations. The trend in multiples does not provide a convincing signal of further valuation expansion: P/E and P/FCF have declined from their peaks, but P/S and P/B remain very high, meaning the market is still paying a premium for quality. The debt burden is also not ideal: debt/equity of 2.03 is above the industry median, long-term debt remains substantial, and equity has declined in the latest period, which weakens the margin of safety. Liquidity is mixed: the current ratio of 1.16 is acceptable, but the quick ratio is zero, and cash on hand has decreased noticeably, which calls for caution. Dividend yield is practically absent, so the stock does not receive support from an income profile and looks more like a growth-and-quality story than a defensive dividend asset. Overall, the fundamentals remain strong, but due to the very high relative valuation and a somewhat stretched balance sheet, it is reasonable to expect only a slight downward adjustment to the target benchmark. For an investor, this means Moody’s deserves a premium to the market, but the current price is already close to the upper end of a reasonable fundamentals-based range.

Moody's Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Moody’s demonstrates outstanding profitability and earnings growth, but trades at a very high premium to the industry and with a moderately strained balance sheet.

Key Points
Card member rewards spending is elevated following the launch of the revamped Platinum Card in September 2025.
American Express continues to grow revenue and earnings at a breakneck pace.
American Express is returning boatloads of cash to shareholders through dividends and buybacks.
On Jan. 1, Greg Abel succeeded Warren Buffett as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), taking over a portfolio of publicly traded equities worth hundreds of billions of dollars, as well as other controlled companies worth even more -- such as Berkshire's insurance businesses, railroads, Berkshire Hathaway Energy, manufacturing, service, retail businesses, and more.
Abel wasted no time making some massive portfolio moves, including selling several small positions and pole-vaulting Alphabet (on Buffett's recommendation) to one of Berkshire's top five holdings. Amid the portfolio changes, Abel added steadfast conviction to Berkshire's largest holdings, saying that Berkshire's concentration in American Express (NYSE: AXP), Apple, Coca-Cola, and Moody's will continue, as Berkshire expects these companies to compound over decades.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
But it has been a rough year for American Express investors. The stock fell 4.3% on July 24 in response to its second-quarter 2026 earnings report, putting American Express down 11.8% year to date.
Here's why American Express is a no-brainer value stock to buy now despite its post-earnings sell-off.
On pace for a banner year
American Express barely missed on revenue expectations and noted an uptick in expenses related to its revamped U.S. Platinum Card perks. The sell-off seems overblown, given that the payment processor and card issuer raised its guidance and now expects a 10% increase in 2026 revenue.
The upbeat growth stems from strong customer additions and increasing customer spending. On a foreign-exchange-adjusted basis, which accounts for currency fluctuations, American Express reported 9% card member spending growth in Q2, which is the highest rate in three years. American Express is guiding for full-year earnings per share of $17.30 to $17.90, which would be an all-time high.
American Express's loyal customer base and steadily rising earnings enable it to consistently increase dividends and repurchase stock at a breakneck pace, accelerating earnings-per-share growth. As of the six months ended June 30, American Express has 682 million shares outstanding, down 3% from a year prior. And over the past decade, American Express has reduced its share count by more than 25%, it's roughly tripled its dividend, and the stock price has more than quintupled. Yet American Express remains an incredible value because earnings growth and buybacks have kept the valuation in check. American Express trades at just 18.5 times the midpoint of its 2026 earnings estimate.
A winning formula
American Express continues to deliver double-digit revenue and earnings growth even amid strained consumer spending. That growth is a testament to the strength of its business model.
American Express caters to an affluent customer base with a reward system built around discretionary spending and perks. Because of high spending on wants rather than needs, the customer base may be less sensitive to inflationary pressures, such as higher gas, food, and shelter costs.
Its members win because their perk value nearly doubles their membership costs on average. American Express collected just $5.61 billion in net card fees in the six months ended June 30, compared with $9.94 billion in card member rewards expenses.
If card fees were the only source of American Express's income, the company wouldn't last long. But like its card members, American Express also wins because customers have an incentive to prioritize spending with their American Express cards to justify the high annual fees and maximum membership rewards. The amount of fees that American Express collected from merchants alone in the six months ended June 30 was roughly double card member reward expenses.
And the merchants win because, although they pay American Express high fees, they still generate sales they might not have made if they hadn't accepted American Express.
American Express shareholders have historically won too because the company generates steady earnings growth that has justified a higher stock price, as well as rising cash flows that allow it to return capital to shareholders through a growing dividend and buybacks.
Add it all up, and American Express is as close to a perfect business model as you'll find.
A top-tier stock to buy now
American Express checks all the boxes of a textbook Warren Buffett stock. It has an established business model and brand, a wide moat from the network effects of its loyal customer base, and a clear path to growing earnings for decades to come. So it's no surprise that Abel called it out as a core Berkshire holding he expects to compound well into the future.
Add it all up, and American Express stands out as one of the best dividend growth stocks for investors to buy now, and one worthy of building an everlasting portfolio around.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
American Express is an advertising partner of Motley Fool Money. Daniel Foelber has positions in American Express. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, and Moody's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Dividend Growth Stock That Warren Buffett Held for Decades, and Greg Abel Pegged as One of Berkshire Hathaway's Multidecade Compounders

An updated edition of the June 3, 2026 article.
A wide moat refers to companies with lasting competitive advantages that protect them from rivals, similar to how a moat defends a castle. Made famous by Warren Buffett, this strategy targets businesses that can sustain strong long-term profitability due to factors like distinct market positions, strong brand loyalty, cost advantages, network effects and regulatory barriers.
Among the companies that are recognized for their wide moats, some are Applied Materials, Inc. AMAT, Texas Instruments Incorporated TXN, Moody's Corporation MCO, Visa Inc. V and Walmart Inc. WMT. These companies compete in industries with significant barriers to entry, which safeguard their market positions and promote consistent revenue growth by reducing the risk of new competitors.
Wide-moat companies generally benefit from several key factors such as brand strength, network effects, high customer switching costs, regulatory protections and economies of scale. These characteristics make it challenging for new entrants or existing competitors to erode their market share. Companies with wide moats typically benefit from strong pricing power, stable profit margins and the capacity to reinvest in their businesses, further reinforcing their competitive advantages.
The case for investing in wide-moat businesses is rooted in their ability to deliver steady, long-term returns. In contrast to companies operating in fiercely competitive industries, where profits can be highly volatile due to pricing pressures and rivalry, wide-moat businesses tend to show greater resilience during economic downturns and market turbulence. Their solid market positions and robust balance sheets enable them to endure challenges that might seriously impact less competitive firms.
Investing in wide-moat companies can be an effective strategy for building long-term wealth, as these businesses typically produce steady cash flows, navigate market volatility with resilience, and deliver value to shareholders through dividends and stock price growth. While no investment is entirely risk-free, companies with strong economic moats provide a level of durability that many investors seek in an ever-changing market. Our Wide Moat Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
Ready to uncover more transformative thematic investment ideas? Explore 39 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
5 Wide-Moat Stocks to Buy Now
Applied Materials’ moat is supported by a strong position in semiconductor equipment, efficient operational scale and a broad portfolio. It is a dominant name in the semiconductor equipment sales domain. AMAT is one of the world’s largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and modules. AMAT has the broadest and most diversified offerings as it provides solutions across multiple fabrication steps, such as deposition, materials engineering, etch, metrology and packaging.
Applied Materials expects to strengthen its position even further in wafer fabrication equipment (“WFE”) thanks to an expanding product portfolio. Furthermore, the emergence of data centers will continue to be a major contributor to the company's top-line growth with the growing demand for dynamic random access memory (“DRAM”) by the cloud service providers.
Applied Materials is seeing artificial intelligence (AI) adoption broaden and diversify, which is pushing wafer fab equipment spending toward leading-edge foundry-logic, DRAM and advanced packaging. Management expects these three areas to drive more than 80% of year-on-year total WFE growth in calendar 2026, with a similar profile in 2027. The company also expects its semiconductor equipment business to grow more than 30% in calendar 2026 as customers expand cleanroom capacity and accelerate equipment pull-ins.
Applied Materials’ semiconductor business continues to be on a growth trajectory with significant design wins. Moreover, the company's AI Design Forum bodes well for its strong focus on the development of new computing materials and designs. The industry's transition to 3D NAND is also helping the company to further expand the served available market. Applied Materials is a Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments has a strong position in the foundational analog and embedded processing semiconductor markets, which are critical for long-term growth in key industries like industrial, automotive, personal electronics and data center. It serves diverse end markets that balance individual ups and downs in multiple ways. For instance, the seasonality in the personal electronics business is balanced out by the industrial, communications, automotive and data center segments.
The company serves individuals and corporations, industrial customers and infrastructure providers. The emergence of 5G technology is aiding the performance of the company's analog products in the communication equipment market. All these are making its revenue stream relatively steady despite the dynamism in each of the markets served. This is very important for a company like Texas Instruments because it has huge facilities of its own that come along with high fixed costs.
Texas Instruments is focusing more on making chips under its internal manufacturing facilities instead of relying on outside foundries. The company aims to manufacture more than 95% of its wafers internally by 2030, with a significant portion of those on 300-millimeter wafers. By building its internal manufacturing, the company will gain better control over production, quality and costs. This will also reduce risks from supply-chain issues and global trade tensions. It also makes Texas Instruments more flexible in responding to customer needs. Over time, this approach can improve profit margins and strengthen the company’s position in the market as demand for reliable chip supply grows.
Texas Instruments, a Zacks Rank #2 stock, is one of the largest suppliers of analog and digital signal processing integrated circuits. The company’s compelling product lineup and efficient manufacturing strategies are anticipated to drive long-term earnings. Also, Texas Instruments is nearing the completion of a six-year elevated capital expenditure cycle, investing in 300-millimeter wafer fabs to secure low-cost manufacturing capacity at scale. This initiative positions the company to meet customer demand while enhancing margins and free cash flow. Further, its focus on innovation of the product portfolio across both the Analog and Embedded Processing segments remains a major positive.
Moody’s is a leader in credit ratings and analytics. Its position is fortified by regulatory reliance on its ratings and a reputation built over decades, creating high barriers for new entrants. Its dominant position in the credit rating industry, along with opportunistic acquisitions and restructuring efforts to diversify revenues and footprint, supports top-line expansion. A strong balance sheet position and earnings strength also keep the company’s capital distributions sustainable.
Moody’s has been meaningfully growing through strategic acquisitions, increasing scale and cross-selling opportunities across products and vertical markets. In August 2025, it announced its plans to secure a majority equity ownership in Middle East Rating & Investors Service. In June 2025, it fully acquired ICR Chile, strengthening its presence in Latin America’s domestic credit markets. In 2024, it announced the acquisition of Numerated Growth Technologies and a 100% stake in Global Credit Rating Company Limited (GCR) to deepen its presence in Africa’s credit market. These deals, along with several other strategic buyouts, will continue helping the company diversify revenues and be accretive to earnings. Moody's will continue to pursue opportunistic deals that are strategic fits and complement its existing operations.
Moody’s continues to pursue growth in areas outside the core credit ratings service. This Zacks Rank #2 company has increased its exposure to the banking and insurance industries and is diversifying into fast-growing professional services and enterprise risk solutions businesses. The rising share of the analytics business, which is not correlated with the volatility of interest rates, has added stability to top-line growth.
Visa, the global leader in digital payments, benefits from an extensive payment network that connects millions of merchants, banks and consumers worldwide. Its economic moat stems from the network effect, where the value of its services increases as more users and businesses participate. With a near-monopoly in card transactions, Visa generates significant revenues through transaction fees while facing minimal competition due to high regulatory and technological barriers in the payment processing industry.
Visa consistently achieves growth in payments volume and processed transactions. The company's robust market position, strategic acquisitions and digital payment trends contribute to revenue expansion. Visa's strategic emphasis on inorganic growth through mergers, acquisitions, and partnerships has solidified its dominance. The company's partnerships and investments underscore its ongoing efforts to extend its network and maintain a leading position in the payment industry. These strategic moves have expanded its global network, resulting in continuous growth in cross-border volumes.
Visa continues to drive product and platform innovation through solutions like Visa Token Service, Visa Checkout, and In-App Provisioning, reinforcing its leadership in secure digital payments. The company keeps pushing emerging form factors such as contactless, tap-to-pay, and secure remote commerce, while expanding partnerships across fintech and crypto-linked use cases. Visa has also moved quickly into agentic commerce. In April 2026, it unveiled Intelligent Commerce Connect, an ‘on ramp’ that lets businesses connect AI agents to payments and acceptance through a single integration. It is also expanding its Agentic Ready testing program from Europe into Asia Pacific and Latin America to validate enrollment, tokenization, authentication and authorization flows before broader rollout. Visa currently carries a Zacks Rank #2.
Walmart, the world’s largest retailer, operates more than 10,900 stores in 19 countries, serving roughly 270 million customers weekly through its vast network of supercenters, discount stores and e-commerce platforms. It thrives on everyday low prices and digital accessibility.
Walmart’s diverse business model is a major advantage. The company generates growth not only from stores but also through digital advertising, memberships and marketplace operations. These areas provide new profit streams that are less dependent on traditional retail sales. Advertising through Walmart Connect and international platforms like Flipkart Ads is growing quickly, while membership income from Walmart+ and Sam’s Club is also rising at a rapid pace.
Walmart’s progress in digital and logistics capabilities has also been impressive. The company uses its massive store network as fulfillment hubs, allowing it to deliver faster and more efficiently. Marketplace growth and greater use of Walmart Fulfillment Services are strengthening both customer convenience and profitability.
This Zacks Rank #2 company is also investing heavily in automation and AI to improve productivity and simplify shopping experiences. Its international operations add another source of growth. Markets like China, Mexico and India (Flipkart) continue to post strong gains, driven by strong e-commerce demand and expansion in quick delivery services.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Wide-Moat Stocks to Invest in for Sustainable Growth

For the second day in a row, we have no economic reports to parse. All market activity is based on current geopolitical conditions and, of course, Q2 earnings season. Pre-market futures are in the red and sinking at this hour, following a nice Tuesday in the green, on higher spot oil prices due to hostilities at the Strait of Hormuz and new tariffs being slapped on Canada this week.
It’s been a rough month of trading, particularly for the tech-heavy Nasdaq, which is down around -6% over that time period. Year to date, the index only lags the small-cap Russell 2000 in gains, though we haven’t seen a new high on the index since mid-June. Currently, the Dow is -93 points, the S&P 500 -28, the Nasdaq has fallen another -284 points and the Russell 2000 -12.
Q2 Earnings Updates at a Glance: GEV, TSLA, GOOGL
GE Vernova GEV, the power and grid solutions component of the old General Electric conglomerate, posted mixed results in its Q2 earnings report this morning. The company outperformed on revenues of $11.1 billion by +3.12%, which earnings of $2.47 per share fell -22% from the $3.17 Zacks consensus estimate, partly on $200 million in new tariffs slapped on import equipment. Shares are down -3% in early trading, but the stock had been performing great: +65% year to date.
Two finance companies outperformed estimates by more than +10% on earnings results ahead of today’s open: Northern Trust NTRS and Moody’s MCO are up +1.25% and +4.5% in early trading. Northern Trust saw clear gains in fees, markets and net interest income during the quarter. Moody’s saw rising demand for analytics and pointed to a better environment for stock repurchases.
After today’s close, Tesla TSLA, Alphabet GOOGL and IBM IBM will be among a slew of fresh earnings reports awaiting investors. These three companies are the most closely aligned with the AI trade which has been propelling markets for much of the past year but has met some resistance on capex spending questions. Today’s reports ought to color-in plenty of lines in this regard.
Tesla, a Zacks Rank #3 (Hold) stock currently, is expected to bring in a +25% gain on quarterly earnings, +14.7% on revenues. Alphabet, the Google and YouTube parent, as well as a Zacks Rank #1 (Strong Buy) stock, is anticipated to post +24.24% on earnings and +23.93% on revenues and has beaten earnings estimates by an average +34% over the past four quarters. IBM carries a Zacks Rank #4 (Sell) into its earnings report, expected +4.64% on earnings and +1.1% on revenues.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Moody's Corporation (MCO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Markets Slip Following Tuesday's Rally

Wednesday, July 22nd, 2026
For the second day in a row, we have no economic reports to parse. All market activity is based on current geopolitical conditions and, of course, Q2 earnings season. Pre-market futures are in the red and sinking at this hour, following a nice Tuesday in the green, on higher spot oil prices due to hostilities at the Strait of Hormuz and new tariffs being slapped on Canada this week.
It’s been a rough month of trading, particularly for the tech-heavy Nasdaq, which is down around -6% over that time period. Year to date, the index only lags the small-cap Russell 2000 in gains, though we haven’t seen a new high on the index since mid-June. Currently, the Dow is -93 points, the S&P 500 -28, the Nasdaq has fallen another -284 points and the Russell 2000 -12.
Q2 Earnings Updates at a Glance: GEV, TSLA, GOOGL
GE Vernova GEV, the power and grid solutions component of the old General Electric conglomerate, posted mixed results in its Q2 earnings report this morning. The company outperformed on revenues of $11.1 billion by +3.12%, which earnings of $2.47 per share fell -22% from the $3.17 Zacks consensus estimate, partly on $200 million in new tariffs slapped on import equipment. Shares are down -3% in early trading, but the stock had been performing great: +65% year to date. For more on GEV’s earnings, click here.
Two finance companies outperformed estimates by more than +10% on earnings results ahead of today’s open: Northern Trust NTRS and Moody’s MCO are up +1.25% and +4.5% in early trading. Northern Trust saw clear gains in fees, markets and net interest income during the quarter. Moody’s saw rising demand for analytics and pointed to a better environment for stock repurchases.
After today’s close, Tesla TSLA, Alphabet GOOGL and IBM IBM will be among a slew of fresh earnings reports awaiting investors. These three companies are the most closely aligned with the AI trade which has been propelling markets for much of the past year but has met some resistance on capex spending questions. Today’s reports ought to color-in plenty of lines in this regard.
Tesla, a Zacks Rank #3 (Hold) stock currently, is expected to bring in a +25% gain on quarterly earnings, +14.7% on revenues. Alphabet, the Google and YouTube parent, as well as a Zacks Rank #1 (Strong Buy) stock, is anticipated to post +24.24% on earnings and +23.93% on revenues and has beaten earnings estimates by an average +34% over the past four quarters. IBM IBM carries a Zacks Rank #4 (Sell) into its earnings report, expected +4.64% on earnings and +1.1% on revenues.
Questions or comments about this article and/or author? Click here>>
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Moody's Corporation (MCO) : Free Stock Analysis Report
Northern Trust Corporation (NTRS) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
GE Vernova Inc. (GEV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Markets Down After Solid Tuesday Session

Moody's MCO reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.
Shares of MCO have lost almost 2% in pre-market trading on broader market weakness despite posting better-than-expected quarterly performance.
The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.
After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $5.03 per share, in the prior-year quarter.
MCO’s Revenues Improve, Costs Rise
Quarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year.
Total expenses were $1.14 billion, up 5% year over year.
Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago.
Moody's Strong Quarterly Segment Performance
Moody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based impressive performance across all lines of business.
Moody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information.
MCO’s Solid Balance Sheet
As of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $1.51 billion as of Dec. 31, 2025.
The company had $6.38 billion in outstanding long-term debt.
Moody's Share Repurchase Update
In the first half of 2026, MCO repurchased $2.2 billion worth of shares.
MCO’s 2026 Guidance
Moody’s expects adjusted earnings in the range of $16.50-$17.00 per share, narrower than the previous guidance of $16.40-$17.00.
Moody’s projects revenues to increase in the high-single-digit percent range.
Operating expenses are expected to be in the mid-single-digit range.
Our Take on MCO
Moody’s remains well-positioned for growth, driven by a solid market position, strength in diverse operations and strategic acquisitions. Elevated operating expenses and geopolitical and macroeconomic concerns are likely to hurt its financials.
Moody's Corporation Price, Consensus and EPS Surprise
Currently, Moody’s carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Expectations of MCO’s Peers
Accenture plc ACN reported third-quarter fiscal 2026 earnings of $3.80 per share, beating the Zacks Consensus Estimate by 2.7%. The metric increased 9% from the year-ago quarter.
ACN’s revenues of $18.72 billion missed the consensus mark by 0.4% but rose 6% year over year in U.S. dollars and 3% in local currency. Managed services, EMEA and communications, media, and technology aided top-line growth.
S&P Global Inc. SPGI is scheduled to report first-quarter 2026 results on July 28.
Over the past seven days, the Zacks Consensus Estimate for S&P Global’s quarterly earnings has been revised lower to $4.49. The estimated figure indicates 1.4% growth from the prior-year quarter.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MCO Q2 Earnings Beat on Rising Analytics Demand & Higher Issuances

Moody's (MCO) came out with quarterly earnings of $4.68 per share, beating the Zacks Consensus Estimate of $4.24 per share. This compares to earnings of $3.56 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +10.38%. A quarter ago, it was expected that this credit ratings agency would post earnings of $4.25 per share when it actually produced earnings of $4.33, delivering a surprise of +1.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Moody's, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $2.19 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.43%. This compares to year-ago revenues of $1.9 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Moody's shares have lost about 3.9% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Moody's?
While Moody's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Moody's was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.35 on $2.09 billion in revenues for the coming quarter and $16.73 on $8.26 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, HIVE Digital Technologies (HIVE), is yet to report results for the quarter ended June 2026.
This crypto currency mining company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -233.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
HIVE Digital Technologies' revenues are expected to be $80.19 million, up 75.8% from the year-ago quarter.
Should You Invest in Moody's Corporation (MCO)?
Before you invest in Moody's Corporation (MCO), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moody's (MCO) Tops Q2 Earnings and Revenue Estimates

(RTTNews) - Credit ratings and analytics company Moody's Corporation (MCO) on Wednesday reaffirmed its full-year 2026 revenue growth outlook and narrowed its adjusted earnings guidance. The company's second-quarter profit surged more than 50%.
However, Moody's shares fell nearly 2% in pre-market trading after closing at $490.77 on Tuesday.
The company continues to expect high-single-digit percentage revenue growth for fiscal 2026. It now forecasts adjusted earnings per share of $16.50 to $17.00, compared with its prior outlook of $16.40 to $17.00. Moody's expects reported EPS of $16.00 to $16.50, versus its previous forecast of $16.00 to $16.60.
For the second quarter, net profit increased to $878 million, or $5.03 per share, from $578 million, or $3.21 per share, a year earlier. Excluding items, adjusted earnings were $816 million, or $4.68 per share.
Revenue rose 15.1% to $2.185 billion from $1.898 billion in the prior-year period.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moody's Q2 Profit Jumps; Reaffirms FY26 Revenue Growth Outlook; Stock Down

(RTTNews) - Moody`s Corp. (MCO) reported a profit for its second quarter that Increases, from last year
The company's bottom line totaled $878 million, or $5.03 per share. This compares with $578 million, or $3.21 per share, last year.
Excluding items, Moody`s Corp. reported adjusted earnings of $816 million or $4.68 per share for the period.
The company's revenue for the period rose 15.1% to $2.185 billion from $1.898 billion last year.
Moody`s Corp. earnings at a glance (GAAP) :
-Earnings: $878 Mln. vs. $578 Mln. last year. -EPS: $5.03 vs. $3.21 last year. -Revenue: $2.185 Bln vs. $1.898 Bln last year.
-Guidance: Full year EPS guidance: $ 16.50 To $ 17.00
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moody`s Corp. Announces Advance In Q2 Bottom Line

(RTTNews) - Moody's Corp. (MCO) will host a conference call at 9:00 AM ET on July 22, 2026, to discuss Q2 26 earnings results.
To access the live webcast, log on to http://ir.moodys.com
To listen to the call, dial +1 833 461 5787 (US) or +1 626 884 3620 (International), Passcode 116 244 197.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moody's Q2 26 Earnings Conference Call At 9:00 AM ET

The following companies are expected to report earnings prior to market open on 07/22/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Philip Morris International Inc (PM)is reporting for the quarter ending June 30, 2026. The tobacco company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.04. This value represents a 6.81% increase compared to the same quarter last year. In the past year PM has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 7.69%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PM is 23.03 vs. an industry ratio of 17.60, implying that they will have a higher earnings growth than their competitors in the same industry.
GE Vernova Inc. (GEV)is reporting for the quarter ending June 30, 2026. The alternative energy company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.16. This value represents a 69.89% increase compared to the same quarter last year. GEV missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -7.87%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GEV is 71.66 vs. an industry ratio of 18.00, implying that they will have a higher earnings growth than their competitors in the same industry.
AT&T Inc. (T)is reporting for the quarter ending June 30, 2026. The wireless (national) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.59. This value represents a 9.26% increase compared to the same quarter last year. T missed the consensus earnings per share in the 3rd calendar quarter of 2025 by -1.82%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for T is 9.46 vs. an industry ratio of -7.30, implying that they will have a higher earnings growth than their competitors in the same industry.
CME Group Inc. (CME)is reporting for the quarter ending June 30, 2026. The securities exchange company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.92. This value represents a 1.35% decrease compared to the same quarter last year. CME missed the consensus earnings per share in the 1st calendar quarter of 2026 by -0.3%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CME is 20.12 vs. an industry ratio of 22.00.
Moody's Corporation (MCO)is reporting for the quarter ending June 30, 2026. The financial services company's consensus earnings per share forecast from the 8 analysts that follow the stock is $4.23. This value represents a 18.82% increase compared to the same quarter last year. In the past year MCO has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.88%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MCO is 30.21 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
TE Connectivity plc (TEL)is reporting for the quarter ending June 30, 2026. The electrical instrument company's consensus earnings per share forecast from the 4 analysts that follow the stock is $2.84. This value represents a 25.11% increase compared to the same quarter last year. In the past year TEL has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.11%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for TEL is 17.96 vs. an industry ratio of 28.10.
Westinghouse Air Brake Technologies Corporation (WAB)is reporting for the quarter ending June 30, 2026. The transportation company's consensus earnings per share forecast from the 3 analysts that follow the stock is $2.63. This value represents a 15.86% increase compared to the same quarter last year. In the past year WAB has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.27%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for WAB is 24.23 vs. an industry ratio of 14.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Northern Trust Corporation (NTRS)is reporting for the quarter ending June 30, 2026. The bank company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.68. This value represents a 25.82% increase compared to the same quarter last year. In the past year NTRS has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 14.35%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for NTRS is 16.19 vs. an industry ratio of 13.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Teledyne Technologies Incorporated (TDY)is reporting for the quarter ending June 30, 2026. The aerospace and defense company's consensus earnings per share forecast from the 3 analysts that follow the stock is $5.78. This value represents a 11.15% increase compared to the same quarter last year. In the past year TDY has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 5.84%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for TDY is 26.00 vs. an industry ratio of 35.00.
Otis Worldwide Corporation (OTIS)is reporting for the quarter ending June 30, 2026. The machinery company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.00. This value represents a 4.76% decrease compared to the same quarter last year. OTIS missed the consensus earnings per share in the 1st calendar quarter of 2026 by -2.2%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for OTIS is 17.66 vs. an industry ratio of 35.70.
PulteGroup, Inc. (PHM)is reporting for the quarter ending June 30, 2026. The building (residential/commercial) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $2.38. This value represents a 21.45% decrease compared to the same quarter last year. PHM missed the consensus earnings per share in the 1st calendar quarter of 2026 by -0.56%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PHM is 12.38 vs. an industry ratio of 10.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Rogers Communication, Inc. (RCI)is reporting for the quarter ending June 30, 2026. The diversified company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.79. This value represents a 3.66% decrease compared to the same quarter last year. In the past year RCI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.37%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for RCI is 10.37 vs. an industry ratio of 11.80.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moody's Corporation

Sign up and unlock all the capabilities of the AI-screener