Moody's Corporation Declares $1.03 Quarterly Dividend

Moody's Corporation (NYSE: MCO), a global provider of credit ratings and financial analytics, declared a regular quarterly dividend of $1.03 per share on April 20, 2026. The dividend will be paid on June 5, 2026, to shareholders of record as of May 15, 2026. Read more dividend announcements.

The announcement follows a strong first quarter in which Moody's returned approximately $1.7 billion to shareholders, including $1.5 billion in share repurchases and $185 million in dividends.

First Quarter Financial Performance

Moody's operating margin reached 44.3% in the first quarter of 2026, while its adjusted operating margin expanded 150 basis points to 53.2%. The company's two main business segments both posted margin improvements during the period.

Moody's Analytics delivered an adjusted operating margin of 32.5%, up 250 basis points from the prior year, driven by strong revenue growth and cost efficiency initiatives. Moody's Investors Service posted an adjusted operating margin of 66.7%, up 70 basis points year-over-year.

Operating expenses grew 7% compared to the first quarter of 2025, including a 3% increase related to a reserve for an international non-income tax obligation and a 2% unfavorable impact from foreign currency translation.

Revenue Growth Across Rating Categories

Moody's Investors Service total transaction revenue increased 8% in the first quarter, with rated issuance volume up 6% overall. Investment grade revenue jumped 33% with issuance volume rising 32%, while high yield revenue climbed 31% on a 21% increase in issuance.

Corporate finance revenue grew 12% with issuance volume up 9%. Public, project and infrastructure finance revenue rose 8% on a 4% increase in volume, while financial institutions revenue edged up 2% despite a 4% decline in transaction revenue. Structured finance revenue slipped 1% as issuance volume fell 5%. Leveraged loan revenue and volume both declined 13%.

Recurring revenue at Moody's Investors Service reached $363 million in the quarter, up 9% from $333 million in the prior-year period.

Updated 2026 Outlook

Moody's updated its full-year 2026 guidance on April 22, raising its diluted earnings per share forecast to a range of $16.00 to $16.60, up from $15.00 to $15.60 previously. The company also increased its share repurchase target to approximately $2.5 billion from $2.0 billion, subject to available cash, market conditions and other capital allocation decisions.

The company maintained its revenue guidance for high-single-digit percentage growth and its adjusted operating margin target of 52% to 53%. Moody's now expects an operating margin of approximately 45%, down slightly from its previous range of 45% to 46%.

Net interest expense guidance increased to $220 million to $240 million from $210 million to $230 million. Non-operating income guidance improved significantly to $70 million to $90 million from a previously expected loss of $180 million to $200 million. The company held its effective tax rate guidance at 23% to 25%.

Operating cash flow is expected to reach $3.25 billion to $3.45 billion, with free cash flow projected at $2.8 billion to $3.0 billion.