Moody's Revenue Climbs 8% to $2.08B in Q1 2026 as Net Income Rises
Moody's Corporation (NYSE: MCO), a global provider of credit ratings and financial analytics, reported revenue of $2.08 billion for the three months ending March 31, 2026, up from $1.92 billion in the year-ago quarter. Net income increased to $661 million from $625 million.
Moody's Corporation (NYSE: MCO), a global provider of credit ratings and financial analytics, posted revenue of $2.08 billion for the three months ending March 31, 2026, an 8% increase from $1.92 billion in the same period of 2025. Read more earnings reports.
Net income for the quarter rose to $661 million, or $3.73 per diluted share, compared with $625 million, or $3.46 per diluted share, in the first quarter of 2025. Operating income climbed to $922 million from $846 million year-over-year.
Segment Performance
The company's Moody's Investors Service segment generated $926 million in revenue during the quarter, up from $859 million in the prior-year period. Moody's Analytics contributed $1.15 billion in revenue, compared to $1.07 billion a year earlier.
Cost of revenue for the quarter totaled $531 million, an increase from $491 million in Q1 2025. Selling, general and administrative expenses rose to $477 million from $439 million. Labor and related expenses across the company reached $681 million, up from $642 million in the year-ago quarter.
Cash and Liquidity
Cash from operations surged to $939 million for the three months ending March 31, 2026, compared to $757 million in the same period of 2025. Cash from financing activities showed an outflow of $1.72 billion, primarily reflecting debt repayment and shareholder distributions, versus an outflow of $1.30 billion a year earlier.
The company paid $184 million in total dividends during the quarter, including $183 million to common stockholders and $1 million on preferred shares. This compared to $171 million in total dividends in Q1 2025.
As of March 31, 2026, Moody's held $1.47 billion in cash and restricted cash, down from $2.38 billion at December 31, 2025. Total assets stood at $14.73 billion as of quarter-end, compared to $15.83 billion at the end of 2025.
Balance Sheet
Total liabilities declined slightly to $11.59 billion from $11.63 billion at year-end 2025. Long-term debt decreased to $6.39 billion from $6.99 billion over the same period. Total stockholders' equity fell to $2.99 billion as of March 31, 2026, from $4.05 billion at December 31, 2025, reflecting the substantial cash return to shareholders.
Accounts receivable increased to $2.04 billion from $2.02 billion at the end of December 2025. Goodwill declined to $6.34 billion from $6.37 billion, while intangible assets decreased to $1.81 billion from $1.87 billion.
Key Financials
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $2.08 billion | $1.92 billion |
| Operating Income | $922 million | $846 million |
| Net Income | $661 million | $625 million |
| EPS (Diluted) | $3.73 | $3.46 |
| Cash from Operations | $939 million | $757 million |
| Total Assets | $14.73 billion | $15.83 billion (Dec 2025) |
Depreciation and amortization for the quarter totaled $122 million, up from $113 million in the first quarter of 2025. The company recorded income tax expense of $209 million, compared to $179 million in the year-ago period.
Weighted average diluted shares outstanding decreased to 177.3 million from 180.7 million, reflecting the company's ongoing share repurchase activity.