Moody's stock steadies as recurring revenue and margins support valuation

Moody's stock trades on the NYSE with a multibillion dollar valuation, backed by double digit recurring revenue growth and resilient margins in its latest reported quarter.

Moody's Corp (US6153691059) runs one of the most widely followed credit rating and analytics franchises worldwide, and Moody's stock on the NYSE reflects that scale with a multibillion dollar market capitalization as of mid 2026. The latest reported quarterly figures show that the company delivered revenue well above the USD 1 billion mark in that period, with year on year growth in the low double digit percentage range, according to the most recent earnings information available from its investor relations materials. That combination of steady top line expansion and resilient profitability is central to how many investors look at Moody's stock in the current market environment.

Revenue above USD 1 billion with double digit growth

According to the company’s most recent quarterly earnings data published in its investor presentations, Moody's reported revenue clearly above USD 1 billion in that quarter, reflecting a business that has scaled materially over the past decade. Compared with the same quarter a year earlier, that revenue increased by a low double digit percentage rate, underlining that growth is still present despite a more mature market for traditional credit ratings. Within that total, a substantial share came from subscription and other recurring revenue streams, which grew faster than the consolidated figure and now accounts for a clear majority of group revenue in that quarter. This recurring component gives Moody's stock a quality tilt, because investors can model cash flows with more confidence when a larger portion is contract based rather than tied to volatile transaction issuance.

The company’s analytics segment, which includes data and risk solutions used by banks, insurers, corporates, and public sector clients, has become an increasingly important driver of that growth. In the last reported quarter, that segment alone contributed hundreds of millions of dollars of revenue and grew at a faster pace than the more cyclical ratings segment versus the prior year period, based on the company’s published segment disclosures. This diversification helps balance the effects of bond issuance cycles on the overall top line and is one reason why Moody's stock is often analyzed together with broader financial technology peers rather than purely traditional financials.

Margins remain high despite investment needs

Profitability remains a key feature of Moody's financial profile. In the most recently reported quarter, the company generated an operating margin comfortably above twenty percent, and an adjusted operating margin even higher once restructuring and certain other items are excluded, according to its earnings commentary. When compared with the equivalent quarter a year earlier, that margin profile was broadly stable even though the firm has continued to invest in technology, data assets, and regulatory capabilities. This indicates that management has been able to balance growth spending with cost discipline, a point that matters for investors evaluating what multiple to pay for Moody's stock.

Net income for that same quarter ran into the hundreds of millions of dollars, translating into earnings per share in the low to mid single digit dollar range on a diluted basis. On a year on year comparison, EPS increased meaningfully, supported by both revenue growth and cost control, and it benefited slightly from share repurchases executed over the preceding twelve months. That EPS development helps frame how the current share price relates to trailing and forward earnings, and it also anchors the company’s capacity to return capital through dividends.

Dividend, balance sheet and capital returns

Alongside earnings, capital allocation is an important part of the Moody's equity story. In its latest full fiscal year, the company reported paying out a regular cash dividend that, at the time, corresponded to an annual total of more than one dollar per share, extended by multiple dividend increases over the past decade. The payout ratio relative to adjusted EPS remained below half of earnings, leaving meaningful room for reinvestment and buybacks. This dividend record offers an income component to Moody's stock, even though the headline yield, when measured against the current share price, remains modest compared with some higher yielding financials.

The balance sheet reported at the end of the most recent fiscal year shows total debt in the billions of dollars, reflecting bond issues used to finance acquisitions and share repurchases over time. However, leverage metrics such as net debt to EBITDA remained within the range that rating agencies typically associate with an investment grade profile for a company with Moody's cash flow characteristics. The firm also reported significant undrawn capacity on its revolving credit facilities, providing liquidity to navigate market cycles or to fund further bolt on deals in analytics or data. These balance sheet features help explain how Moody's can pursue growth while continuing to return cash to shareholders.

Products and analytics platform support growth

Moody's business is built on two main pillars: its credit ratings franchise and a diversified portfolio of data, risk and analytics solutions. On the ratings side, the company provides opinions on the creditworthiness of sovereigns, corporates, financial institutions, and structured finance deals, which underpin a significant portion of global fixed income markets. Issuers pay for these ratings, and investors rely on them as one input when they evaluate risk and return across bonds and loans. Because the mix of issuance changes over time, ratings revenue can fluctuate with the cycle, but over longer periods issuance has tended to grow alongside the depth of capital markets.

The analytics pillar includes a broad set of tools used for credit risk modeling, climate and ESG analysis, regulatory reporting, and portfolio management. These offerings are primarily subscription based and sold to banks, insurers, asset managers, and corporates around the world. Recent quarters have seen demand for solutions that help financial institutions manage regulatory capital, model stress scenarios, and integrate climate risk into their planning. The fact that this segment has grown faster than the consolidated business, as shown in the latest reported segment figures, underpins the thesis that Moody's is progressively becoming a more data and software driven company.

Moody's stock and valuation context

Moody's stock trades on the New York Stock Exchange under the MCO ticker, and its share price levels in mid 2026 imply a market capitalization in the tens of billions of dollars. Measured against the trailing twelve month earnings per share reported in its most recent full year and the last four quarters, this corresponds to a price to earnings multiple in the twenties, a level that reflects both the resilience of its recurring revenue and the concentrated nature of the global ratings and analytics market. Compared with a number of more cyclical financial stocks, this multiple is higher, but investors are effectively paying for the stability and growth profile that the company’s mix of ratings and analytics businesses offers.

Another way to view valuation is to relate enterprise value to EBITDA, using the adjusted EBITDA figures that Moody's discloses alongside its quarterly results. With EBITDA in the billions of dollars over the trailing twelve months and net debt at a more modest multiple of that figure, the enterprise value to EBITDA ratio also lands at a level that is typical for high quality, high margin information services firms. For those comparing Moody's stock with other data and analytics names, this frame can be as relevant as a simple P/E analysis, especially when considering long term growth in the analytics segment.

Moody's Corp at a glance

• Company: Moody's Corp
• ISIN: US6153691059
• Ticker: NYSE: MCO
• Trading venue: NYSE
• Price (as of 19 July 2026, 16:00 ET): value USD
• Market capitalization: tens of billions USD (as of 19 July 2026)
• Sector / Industry: Financials / Financial data and analytics
• Index membership: S&P 500