Moody’s (NYSE:MCO) Updates FY 2026 Earnings Guidance

Moody’s (NYSE:MCO) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 16.400-17.000 for the period, compared to the consensus earnings per share estimate of 16.470. The company issued revenue guidance of -.

Moody’s Stock Down 1.2%

MCO traded down $5.31 during trading on Thursday, reaching $445.45. The company had a trading volume of 105,066 shares, compared to its average volume of 1,261,822. The company has a market cap of $79.47 billion, a P/E ratio of 35.84, a PEG ratio of 1.96 and a beta of 1.44. Moody’s has a 12 month low of $378.71 and a 12 month high of $546.88. The company has a debt-to-equity ratio of 1.70, a current ratio of 1.84 and a quick ratio of 1.84. The business’s fifty day moving average price is $498.58 and its 200 day moving average price is $494.79.

Moody’s (NYSE:MCO) last released its earnings results on Wednesday, February 18th. The business services provider reported $3.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.39 by $0.25. The business had revenue of $1.89 billion for the quarter, compared to the consensus estimate of $1.87 billion. Moody’s had a return on equity of 63.58% and a net margin of 29.92%.Moody’s’s quarterly revenue was up 13.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.62 earnings per share. Moody’s has set its FY 2026 guidance at 16.400-17.000 EPS. Equities analysts anticipate that Moody’s will post 13.95 EPS for the current year.

Moody’s Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Monday, March 2nd will be given a $1.03 dividend. The ex-dividend date is Monday, March 2nd. This is an increase from Moody’s’s previous quarterly dividend of $0.94. This represents a $4.12 dividend on an annualized basis and a dividend yield of 0.9%. Moody’s’s dividend payout ratio (DPR) is 30.23%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on MCO shares. Daiwa Securities Group upgraded shares of Moody’s from a “neutral” rating to an “outperform” rating and raised their price target for the company from $500.00 to $590.00 in a research note on Tuesday, January 13th. Wall Street Zen cut Moody’s from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Wells Fargo & Company lifted their price target on Moody’s from $620.00 to $660.00 and gave the company an “overweight” rating in a research note on Wednesday, January 14th. Bank of America initiated coverage on Moody’s in a research note on Tuesday. They issued a “buy” rating and a $550.00 price objective for the company. Finally, BMO Capital Markets set a $480.00 price target on shares of Moody’s in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Moody’s has an average rating of “Moderate Buy” and a consensus target price of $555.94.

Insider Activity at Moody’s

In other Moody’s news, CEO Robert Fauber sold 592 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $516.15, for a total value of $305,560.80. Following the sale, the chief executive officer directly owned 61,082 shares in the company, valued at $31,527,474.30. This represents a 0.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.14% of the company’s stock.

Moody’s News Summary

Here are the key news stories impacting Moody’s this week:

• Positive Sentiment: Q4 beat — Moody’s reported non‑GAAP EPS of $3.64 vs. consensus ~$3.39 and revenue of $1.89B (up ~13% YoY), driven by strength in Investors Services and analytics. Moodys Corp (MCO) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Growth Initiatives
• Positive Sentiment: Upbeat FY‑2026 guidance — Moody’s set FY‑2026 EPS guidance of $16.40–$17.00 and cited strong demand for credit ratings (including M&A activity), supporting expectations for continued revenue growth. Moody’s forecasts upbeat 2026 profit on strong demand for credit ratings
• Positive Sentiment: Dividend increase — Moody’s raised its quarterly dividend to $1.03 (9.6% hike), signaling confidence in cash flow and returning capital to shareholders (ex‑dividend March 2). This supports income investors and signals management conviction.
• Positive Sentiment: Geographic expansion — Moody’s established a regional headquarters in Riyadh to deepen Middle East presence amid local capital‑markets reforms, which could support long‑term market growth. Moody’s Establishes Regional Headquarters in Saudi Arabia, Deepening Presence in Region
• Neutral Sentiment: Higher near‑term costs — Some reports note expenses edged up as Moody’s scales technology and analytics, which may temper margin expansion even as revenue grows. MCO Q4 Earnings Beat on Rising Analytics Demand & High Issuance Volume
• Neutral Sentiment: Guidance largely in line — The FY‑2026 range overlaps Wall Street’s consensus (~$16.47), so upside depends on execution and sustained ratings demand; investors are pricing in continued strong performance.
• Negative Sentiment: Analyst caution / short‑term pullback risk — Some analysts and commentaries warned a post‑report pullback was possible or that valuation (P/E) leaves limited margin for disappointment. Moody’s: The Drop Was Expected, Now Looking At 2026

Hedge Funds Weigh In On Moody’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. bought a new position in Moody’s during the 2nd quarter valued at approximately $25,000. Birchwood Financial Partners Inc. bought a new stake in Moody’s in the 4th quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd bought a new stake in Moody’s during the third quarter valued at approximately $30,000. Kemnay Advisory Services Inc. bought a new position in shares of Moody’s in the fourth quarter worth about $31,000. Finally, Wealth Watch Advisors INC bought a new stake in Moody’s during the third quarter valued at about $32,000. Hedge funds and other institutional investors own 92.11% of the company’s stock.

Moody’s Company Profile

Moody’s Corporation is a global provider of credit ratings, research, data and analytics that support financial decision-making and transparency in capital markets. The company traces its origins to the early 20th century when financial analyst John Moody began publishing credit information; today Moody’s is headquartered in New York and serves a broad set of market participants including investors, issuers, financial institutions, corporations, governments and regulators.

Moody’s operates primarily through two complementary businesses.