Moody’s revenue reaches $2.1B as strong issuance drives 13% adjusted EPS growth

Moody’s (NYSE:MCO) delivered a record-breaking performance for the first quarter of 2026, characterized by robust top-line growth and significant margin expansion.

The global integrated risk assessment firm reported total revenue of $2.1 billion, an 8% increase over the prior-year period.

The results were driven by a resurgence in debt issuance volumes and continued double-digit demand for its data and analytics platforms.

Profitability metrics showed substantial improvement as the company leveraged its high-margin recurring revenue streams.

Moody’s GAAP operating margin reached 44.3%, while its adjusted operating margin expanded by 150 basis points to 53.2%.

Diluted earnings per share (EPS) grew 8% to $3.73, and adjusted diluted EPS surged 13% to $4.33, reflecting powerful operating leverage across both the Investors Service (MIS) and Analytics (MA) segments.

The company also announced a key leadership transition, naming Christina Kosmowski as the new Chief Executive Officer of Moody’s Analytics, effective June 2026.

Kosmowski, an enterprise technology veteran with deep experience at Salesforce and Slack, is expected to accelerate the division's integration of generative AI and connected intelligence platforms for global financial institutions.

Financially, Moody’s generated $939 million in operating cash flow, up 24%, while free cash flow reached $844 million.

Capital returns were a major focus of the quarter, with the firm returning $1.7 billion to shareholders through $1.5 billion in share repurchases and $185 million in dividends.

Following the strong cash performance, Moody’s raised its full-year 2026 share repurchase guidance from $2 billion to approximately $2.5 billion.