Moody’s (MCO) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $2,007 million in Q3 2025, up 11% year-over-year, with both Moody's Analytics (MA) and Moody's Investors Service (MIS) contributing to growth.

• Adjusted diluted EPS rose 22% to $3.92, and adjusted operating margin expanded to 52.9%, reflecting strong operating leverage and innovation.

• Net income attributable to shareholders increased 21% to $646 million, with diluted EPS up 23% to $3.60.

• Raised full-year 2025 guidance for revenue, margins, and EPS, supported by robust performance, cost discipline, and confidence in future growth.

• Continued investment in technology, AI, and expansion in emerging markets, including acquisitions and a majority stake in Egypt's leading ratings agency.

Financial highlights

• Q3 2025 revenue: $2,007 million (up 11% year-over-year); nine months YTD: $5,829 million (up 8%).

• Adjusted operating margin for Q3 2025 was 52.9%, up from 47.8% in Q3 2024.

• Adjusted diluted EPS for Q3: $3.92 (up 22%); YTD: $11.30 (up 15%).

• Free cash flow for the first nine months was $1.8 billion; full-year guidance is approximately $2.5 billion.

• Share repurchase guidance raised to at least $1.5 billion, with $4 billion in new authorization.

Outlook and guidance

• Full-year 2025 revenue growth expected in the high single-digit percent range.

• Adjusted diluted EPS guidance increased to $14.50–$14.75, implying 17% growth at midpoint.

• Adjusted operating margin guidance raised to about 51% for the group, 63–65% for MIS, and approximately 33–34% for MA.

• Free cash flow projected at approximately $2.5 billion.

• Strategic and Operational Efficiency Restructuring Program expected to deliver $250–$300 million in annualized savings by end of 2026.