Moody’s (MCO) Q2 2024 earnings summary

Executive summary

• Achieved 22% year-over-year revenue growth in Q2 2024, reaching $1.82 billion, with strong performance in both Moody's Analytics (MA) and Moody's Investors Service (MIS) segments.

• Adjusted diluted EPS rose 43% to $3.28, and diluted EPS increased 47% to $3.02; net income attributable to Moody's increased 46% to $552 million.

• Operating margin expanded 590 basis points to 42.7%, and adjusted operating margin reached 49.6%.

• Growth was fueled by robust demand for insurance, KYC, and SaaS-based banking solutions in MA, and significant issuance activity across all MIS lines of business.

• Continued innovation with new GenAI-powered products and expanded partnerships to drive long-term growth.

Financial highlights

• Q2 2024 revenue: $1.82 billion (up 22% year-over-year); adjusted operating margin at 49.6%.

• Adjusted diluted EPS: $3.28 for Q2 (up 43%); diluted EPS: $3.02 (up 47%).

• Free cash flow for the first half: $1.29 billion, up from $1.09 billion in the prior year.

• MIS revenue grew 36% with 47% rated issuance growth; MA revenue up 7% with 10% ARR growth.

• MIS adjusted operating margin increased to 63.2%; MA adjusted operating margin at 28.5%.

Outlook and guidance

• FY 2024 revenue expected to increase in the high single-digit to low double-digit percent range.

• Adjusted diluted EPS guidance raised to $11.00–$11.40; free cash flow expected at $2.0B–$2.2B.

• Share repurchase guidance increased to approximately $1.3 billion for 2024.

• MA revenue projected to grow in the high single-digit to low double-digit percent range; MIS revenue in the high teens percent range.

• Adjusted operating margin guidance: 46%–47% for 2024.