Shares of Moody’s Corporation (NYSE:MCO) rose 0.59% in premarket trading on Wednesday after the ratings agency reported first-quarter results that exceeded analyst expectations on both earnings and revenue.
Adjusted earnings per share came in at $4.33, ahead of the $4.23 consensus estimate, while revenue reached $2.1 billion, slightly above forecasts of $2.07 billion.
Total revenue increased 8% year-on-year, or 6% on an organic constant-currency basis, supported by solid performance across both of the company’s main business divisions.
Moody’s delivered record first-quarter results, with its ratings arm, Moody’s Investors Service, generating $1.2 billion in revenue on more than $2 trillion in rated issuance. Meanwhile, Moody’s Analytics reported 8% annualised recurring revenue growth.
“Both MIS and MA delivered strong results this quarter with sustained growth and powerful operating leverage,” said Rob Fauber, President and Chief Executive Officer. “MIS achieved record revenues of $1.2 billion on over $2 trillion in rated issuance and delivered an adjusted operating margin of 67%.”
Moody’s reaffirmed its full-year 2026 adjusted diluted EPS guidance of $16.40 to $17.00, broadly in line with analyst expectations of $16.68, with the midpoint slightly above consensus.
The company also maintained its outlook for high-single-digit revenue growth.
In addition, Moody’s increased its share buyback target to around $2.5 billion from $2.0 billion, having already returned $1.7 billion to shareholders in the first quarter through $1.5 billion in repurchases and $185 million in dividends.
Moody’s Analytics revenue rose 8%, with adjusted operating margin expanding by 250 basis points to 32.5%. Moody’s Investors Service revenue also grew 8% to a record $1.2 billion, with an adjusted operating margin of 66.7%.