Moody's Corporation Reports $2.023 Billion Revenue in Q3 2026, 1% Increase Year-Over-Year

Moody's Corporation reported a total revenue of $2.023 billion for the third quarter of 2026, reflecting a 1% increase from $2.007 billion in the same period last year. For the nine months ending September 30, 2026, revenue rose to $6.287 billion, an 8% increase compared to $5.829 billion in the prior year. The company's operating income for the third quarter was $906 million, slightly down from $917 million a year earlier, while net income attributable to Moody's increased by 14% to $734 million, up from $646 million in the previous year. Diluted earnings per share rose to $4.24, an 18% increase from $3.60.

The financial performance was bolstered by growth in the Moody's Analytics (MA) segment, which saw external revenue increase by 3% to $936 million, driven by strong demand for insurance offerings and cloud-based banking solutions. However, the Moody's Investors Service (MIS) segment experienced a slight decline in external revenue, down 1% to $1.087 billion, primarily due to lower issuance activity in leveraged finance. The overall increase in revenue was also supported by a gain of $115 million from the divestiture of the MA Regulatory Solutions business.

In terms of operational developments, Moody's continued to execute its Strategic and Operational Efficiency Restructuring Program, which is expected to yield annualized savings of $300 million to $350 million. The program includes staff reductions and the exit of certain business lines, including the divestiture of the MA Regulatory Solutions business. As of September 30, 2026, the company had approximately 16,000 employees, a decrease from 15,952 a year earlier, reflecting the impact of these divestitures.

Geographically, Moody's reported that U.S. revenue increased by 1% to $1.134 billion, while non-U.S. revenue remained stable at $889 million. The company noted that its Annualized Recurring Revenue (ARR) grew by 8%, indicating strong customer retention and demand for subscription-based services. The company also reported a significant increase in cash flow from operating activities, which rose to $2.471 billion for the nine months ended September 30, 2026, compared to $2.043 billion in the prior year.

Looking ahead, Moody's expects continued growth driven by its strategic focus on high-priority areas and operational efficiencies. The company remains committed to returning value to shareholders through dividends and share repurchases, with approximately $1.4 billion remaining under its share repurchase authorization as of September 30, 2026.