Moody's Corporation Reports 4% Revenue Growth to $1.898 Billion in Q2 2025

Moody's Corporation reported a total revenue of $1.898 billion for the second quarter of 2025, marking a 4% increase from $1.817 billion in the same period last year. The company's net income attributable to Moody's rose to $578 million, or $3.21 per diluted share, compared to $552 million, or $3.02 per diluted share, in the prior year, reflecting a 5% increase in profitability. For the first half of 2025, total revenue reached $3.822 billion, up 6% from $3.603 billion in the first half of 2024, with net income attributable to Moody's at $1.203 billion, compared to $1.129 billion in the previous year.

The company experienced notable growth in its Moody's Analytics (MA) segment, which reported external revenue of $888 million, an 11% increase from $802 million in the prior year. This growth was driven by strong performance across all lines of business, particularly in Decision Solutions, which saw a 13% increase in revenue. In contrast, the Moody's Investors Service (MIS) segment reported external revenue of $1.010 billion, a slight decline from $1.015 billion, primarily due to lower issuance volumes in corporate finance and financial institutions.

Strategically, Moody's has been active in acquisitions, including the purchase of CAPE Analytics in January 2025, which contributed to the growth in the MA segment. The company is also implementing a Strategic and Operational Efficiency Restructuring Program aimed at realigning operations and achieving annualized savings of $250 million to $300 million. This program has resulted in restructuring charges of $60 million in the first half of 2025, reflecting the company's commitment to enhancing operational efficiency.

Operationally, Moody's reported a total employee headcount of approximately 16,000, a slight increase from the previous year. The company also noted a 10% growth in Annualized Recurring Revenue (ARR) in the MA segment, indicating strong demand for subscription-based services. The geographic breakdown of revenue showed growth in both the U.S. and international markets, with U.S. revenue increasing by 2% and non-U.S. revenue rising by 7%.

Looking ahead, Moody's anticipates continued growth driven by its strategic initiatives and market demand for its services. The company expects to maintain a positive operating cash flow and is committed to returning value to shareholders through dividends and share repurchases. The outlook remains cautiously optimistic, with management emphasizing the importance of navigating market conditions and potential economic uncertainties.