Moody's reports better-than-expected Q2, narrows earnings outlook.


Moody’s Corporation reported a rise in second-quarter earnings on Wednesday, underpinned by strong growth in its analytics division and resilient performance from its credit ratings business.

  • Moody's Corp.
  • 23 July 2025 14:15:25
Moodys Corporation

Source: Sharecast

The New York-based ratings and analytics firm posted revenue of $1.9bn for the three months to June, up 4% year-on-year, while adjusted diluted earnings per share rose 9% to $3.56.

Net income climbed to $578m, or $3.21 per share, from $552m, or $3.02, a year earlier.

Moody’s Analytics, which operates largely on a subscription-based model, saw revenue climb 11% to $888m, supported by heightened demand for market insights amid ongoing macroeconomic and policy uncertainty.

Meanwhile, revenue at Moody’s Investors Service, the credit ratings arm, held steady at $1bn, reflecting flat global debt issuance volumes in the quarter.

President and CEO Rob Fauber said the company had helped markets “make sense of a complex and rapidly changing global landscape,” adding that Moody’s was continuing to “strengthen the earnings engine of the company” through recurring revenue growth and cost discipline.

Following the results, Moody’s narrowed its full-year adjusted earnings forecast to a range of $13.50 to $14.00 per share, implying growth of 10% at the midpoint.

That compared with its prior guidance of $13.25 to $14.00.

Chief financial officer Noémie Heuland said the results demonstrated the success of the company’s strategic and efficiency initiatives, with margin expansion across both core divisions.

Moody’s shares, which are up nearly 5% year-to-date, were flat in pre-market trading.

At 0904 EDT (1404 BST), shares in Moody’s Corporation were up 0.02% in premarket trading in New York, at $499.12.

Reporting by Josh White for Sharecast.com.


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