Moody's Corporation Reports 15% Revenue Growth to $2.185 Billion in Q2 2026

Moody's Corporation reported a significant increase in financial performance for the second quarter of 2026, with total revenue reaching $2.185 billion, a 15% rise from $1.898 billion in the same period last year. The company's net income attributable to Moody's shareholders also saw a substantial increase, climbing to $878 million, or $5.03 per diluted share, compared to $578 million, or $3.21 per diluted share, in the prior year. This growth was driven by strong performance across both of its reportable segments, Moody's Analytics (MA) and Moody's Investors Service (MIS), with MIS experiencing a 25% increase in external revenue.

In comparison to the previous fiscal period, Moody's total revenue for the first half of 2026 was $4.264 billion, up 12% from $3.822 billion in the first half of 2025. The increase in revenue was attributed to strong demand for ratings and analytics, particularly in the corporate finance and project finance sectors. The company also reported a gain of $181 million from the divestiture of its MA Regulatory Solutions business, which contributed to the overall increase in net income.

Strategically, Moody's has been focusing on restructuring efforts aimed at enhancing operational efficiency. The Strategic and Operational Efficiency Restructuring Program, which was expanded in July 2026, is expected to yield annualized savings of $300 million to $350 million. This program includes staff reductions and the exit from certain business lines, including the divestiture of the MA Regulatory Solutions business. As of June 30, 2026, the company had a total employee headcount of approximately 15,627, reflecting a decrease from the previous year primarily due to these divestitures.

Operationally, Moody's has reported a 9% increase in Annualized Recurring Revenue (ARR) across its MA segment, driven by strong demand for subscription-based services. The company also noted a 4% increase in external revenue for MA, totaling $925 million, with notable growth in its Decision Solutions and Data and Information lines of business. Geographic expansion was evident, with U.S. revenue increasing by 23% and non-U.S. revenue growing by 7% in the second quarter.

Looking ahead, Moody's remains optimistic about its growth trajectory, supported by strong market demand and ongoing strategic initiatives. The company anticipates continued revenue growth driven by its analytics and ratings services, alongside the successful execution of its restructuring program. Moody's management emphasized the importance of maintaining operational efficiency and leveraging its extensive data and analytics capabilities to navigate the evolving risk landscape.