Moody's Corporation Reports 11% Revenue Growth to $2.007 Billion in Q3 2025

Moody's Corporation reported a significant increase in its financial performance for the third quarter of 2025, with total revenue reaching $2.007 billion, an 11% rise from $1.813 billion in the same period last year. The company's net income attributable to Moody's shareholders was $646 million, or $3.60 per diluted share, compared to $534 million, or $2.93 per diluted share, in the prior year, marking a 21% increase in net income and a 23% increase in earnings per share. For the nine months ended September 30, 2025, total revenue was $5.829 billion, up 8% from $5.416 billion in 2024, with net income of $1.849 billion, reflecting an 11% increase from $1.663 billion.

The company experienced growth across both of its reportable segments, Moody's Analytics (MA) and Moody's Investors Service (MIS). MA's external revenue increased by 9% to $909 million, driven by strong demand for insurance and Know Your Customer (KYC) offerings, while MIS external revenue rose by 12% to $1.098 billion, supported by robust investor demand and increased issuance activity in leveraged finance. The overall operating margin improved to 45.7%, up from 40.7% in the previous year, reflecting effective cost management alongside revenue growth.

In terms of strategic developments, Moody's has been actively pursuing acquisitions to enhance its service offerings. The company completed the acquisition of CAPE Analytics in January 2025, which is expected to bolster its capabilities in property risk intelligence. Additionally, Moody's is executing a Strategic and Operational Efficiency Restructuring Program aimed at realigning its operations towards high-priority growth areas, which is projected to yield annualized savings of $250 million to $300 million upon completion.

Operationally, Moody's reported a total employee headcount of approximately 16,000 across more than 40 countries, with a slight decrease in the U.S. workforce but an increase in non-U.S. staff. The company also noted a 6% organic constant currency revenue growth, with Annualized Recurring Revenue (ARR) increasing by 8%. The geographic distribution of revenue showed strong performance in both the U.S. and international markets, with U.S. revenue growing by 12% and non-U.S. revenue by 9%.

Looking ahead, Moody's remains optimistic about its growth trajectory, citing sustained demand for its products and services. The company anticipates continued revenue growth driven by its strategic investments and operational efficiencies. However, it also acknowledges potential risks from market volatility and regulatory changes that could impact its operations. The company is committed to maintaining its focus on delivering value to shareholders through dividends and share repurchases, with an additional $4 billion in share repurchase authority authorized in October 2025.