Moody's(NYSE) MCO

Moody's Corporation helps lenders decide if borrowers can pay back loans. It gives credit ratings to companies and governments around the world. The company also provides data tools to manage financial risks.

Ratings, Data, and Analytics

• Moody's Investors Service: Issues credit ratings and risk analysis for businesses and governments; earned $1.26 billion in external revenue in the three-month period ended June 30, 2026.
• Decision Solutions: Delivers cloud-based software for banking, insurance, and Know Your Customer (KYC) compliance workflows; generated $423 million in external revenue during the second quarter of 2026.
• Research and Insights: Provides credit research and economic modeling for investment decisions; accounted for $256 million in external revenue in the three months ended June 30, 2026.
• Data and Information: Manages a database on companies and credit for financial analysis; contributed $246 million in external revenue in the second quarter of 2026.

Reshaping the Business Portfolio

• Sold the MA Regulatory Solutions business in the second quarter of 2026.
• Divested the MA Learning Solutions business during the fourth quarter of 2025.
• Acquired CAPE Analytics in the first quarter of 2025 to expand insurance data capabilities.
• Shifted toward cloud-based subscription models within the banking and insurance sectors to provide recurring revenue.

Why Moody's Stays Essential

The company operates in more than 40 countries with data on hundreds of thousands of entities. Its ratings and analytical tools are integrated directly into the regulated workflows of global banks and insurance providers.

Numbers from the Second Quarter

• Revenue was $2.19 billion in the second quarter of 2026, up 15% year over year.
• Net income was $878 million in the three months ended June 30, 2026, up 52% year over year.
• Adjusted operating margin reached 55.3% in the quarter ended June 30, 2026, up 440 basis points year over year.
• Free cash flow was $1.53 billion for the six-month period ended June 30, 2026, up from $1.14 billion in the prior-year period.

Evolution into Intelligence

Moody's has transitioned from a traditional credit rating agency into a global provider of risk intelligence. Its shift toward recurring, cloud-based subscriptions supports business stability against fluctuations in debt markets.