A global provider of credit ratings, data, and risk analytics, Moody's works through two arms: Moody's Investors Service, which issues letter-grade credit ratings on bonds, and Moody's Analytics, whose software and research help banks, insurers, and governments manage risk. Founded by financial analyst John Moody, the company gave its name to the modern rating business: after the 1907 market panic cost him his first publishing venture, he returned in 1909 with ratings for railroad bonds that introduced the now-familiar Aaa letter grades.
Q2 2026 revenue rose 8.1% to $2.08B with EPS up 7.8% to $3.73 as MIS and MA each grew
Both reporting segments grew again after flattened in mid-2025. rose 8.1% to $2,079.0M and rose 7.8% to $3.73 as MIS and each grew 8%, with at 44.3% and up 25.6% to $844.0M; the company carries $6,387.0M of against $1,469.0M cash after $1,483.0M of Q1 buybacks. Growth is broad-based, but the cash balance fell 38.4% from year-end on share repurchases.
Key takeaways
rose 8.1% to $2,079.0M in Q2 2026, with external revenue up 8% to $1,153.0M and external revenue up 8% to $926.0M, extending the 8% pace both segments set in Q1.
growth was led by Corporate Finance up 12% on investment-grade issuance including AI-related financing and PPIF up 8% on infrastructure and data center deals, broadening the issuance base beyond 2024's corporate-finance-led expansion.
's 8% rise to $926.0M was led by up 17%, Insurance up 11%, and Data & Information up 10%, with increasing 8% to $3.6B, confirming recurring subscription demand persisted from Q1.
Section summaries
Management's Discussion and Analysis
Moody's Q2 2026 revenue rose 15% to $2.2B, driven by 25% growth in MIS on strong debt issuance and 4% growth in MA, with operating margin expanding 480 bps.
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Total grew 15% to $2,185 million, with MIS up 25% to $1,260 million and MA up 4% to $925 million; was 16%.
was 44.3%, up 0.4 points and 3.6 points from Q1, as growth outpaced a 7% rise in operating expenses to $1,157.0M that included a $34.0M reserve for an international non-income tax obligation.
rose 7.8% to $3.73 and rose 5.8% to $661.0M; rose 25.6% to $844.0M from $672.0M a year earlier, while rose 24.0% to $939.0M.
The company repurchased $1,483.0M in shares during Q1 2026, leaving cash and equivalents at $1,469.0M, down 38.4% from year-end, and at $6,387.0M, down 6.4% .
What changed
Q2 2026 grew 8% versus the flat Q2 2025 reading, settling the prior flag that flat Q2 would give way to decline or recovery — it recovered on Corporate Finance and PPIF issuance.
The Strategic and Operational Efficiency Restructuring Program carried a $34.0M Q1 charge and targets $250M–$300M annualized savings by 2026, continuing from the $108.0M booked in FY2025 with no new outlay figure this quarter.
Share repurchases deployed $1,483.0M in Q1 2026 versus $1,620.0M for all of 2025, answering the flag on pace — it continued at a similar rate.
rose 8% to $3.6B in Q2, matching the 8% Q1 rise and FY2025 pace, confirming subscription demand holds without new acquisition contributions as earlier flagged.
New cross-currency swaps designated as net investment hedges in Q1 2026 updated FX sensitivity to a 10% euro move causing ~$450.0M impact, offset by translation gains — a change from the Q2 2025 hedge disclosure.
What to watch
Q3 2026 to see if the 8% Q2 growth holds as Corporate Finance and PPIF issuance responds to rate and credit-spread trends
Next cash outlays and charges under the Strategic and Operational Efficiency Restructuring Program toward the $250M–$300M annualized savings target by 2026
Q3 2026 volume after $1,483.0M deployed in Q1 to see if buybacks continue at that pace
Q3 2026 and growth beyond the 8% Q2 rise to confirm subscription demand persists
MIS growth was led by (up 27%) on higher leveraged finance and investment-grade issuance, and PPIF (up 38%) on data center and infrastructure financing.
MA growth was driven by Data & Information (up 9%) and (up 2%), with Insurance and KYC up 11% and 12%, respectively; Banking declined 14% due to divestitures.
expanded to 47.9% from 43.1%, and to 55.3% from 50.9%, reflecting growth and disciplined cost management.
rose 57% to $5.03, including a $179 million pre-tax gain on the sale of the MA Regulatory Solutions business; grew 31% to $4.68.
was $1,532 million for the first half of 2026, up from $1,140 million, driven by higher and lower incentive compensation payments.
Quantitative and Qualitative Disclosures About Market Risk
The company entered new cross-currency swaps as net investment hedges, updating sensitivity to a 10% adverse FX move to ~$670M in OCI, offset by translation gains.
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New cross-currency swaps were designated as net investment hedges in the six months ended June 30, 2026, with no other material market risk changes.
A 10% strengthening of the euro vs. USD would cause an approximate $450 million unfavorable impact on cross-currency swaps in .
A 10% strengthening of the Hong Kong dollar vs. USD would cause an approximate $50 million unfavorable impact on cross-currency swaps in .
A 10% strengthening of the Singapore dollar vs. HKD would cause an approximate $30 million unfavorable impact on cross-currency swaps in .
Euro-denominated debt (€500M 2015 Notes and €750M 2019 Notes) designated as net investment hedges would see a ~$140M unfavorable adjustment if the euro strengthens 10% vs. USD.
All unfavorable impacts from these hedges are expected to be offset by favorable currency translation gains on the hedged net investments.
For information regarding legal proceedings, see Item 1 – “Financial Statements – Notes to Consolidated Financial Statements (Unaudited),” Note 15 “Contingencies” in this Form 10-Q.
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For information regarding legal proceedings, see Item 1 – “Financial Statements – Notes to Consolidated Financial Statements (Unaudited),” Note 15 “Contingencies” in this Form 10-Q.
There have been no material changes from the significant risk factors and uncertainties previously disclosed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2025, that if they were to occur, could materially adversely…
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There have been no material changes from the significant risk factors and uncertainties previously disclosed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2025, that if they were to occur, could materially adversely affect the Company’s business, financial condition, operating results and/or cash flow. For a discussion of the Company’s risk factors, refer to Item 1A. “Risk Factors” contained in the Company’s annual report on Form 10-K for the year ended December 31, 2025.