Moody's Corporation Reports 8% Revenue Increase to $1.924 Billion in Q1 2025

Moody's Corporation reported a revenue increase of 8% for the first quarter of 2025, reaching $1.924 billion compared to $1.786 billion in the same period last year. The company's net income attributable to Moody's rose to $625 million, or $3.46 per diluted share, reflecting a 10% increase in earnings per share from $3.15 in the prior year. The operating income also saw a 6% rise, totaling $846 million, while the operating margin slightly decreased to 44.0% from 44.8% in the previous year.

The financial performance was bolstered by growth across both of Moody's reportable segments: Moody's Analytics (MA) and Moody's Investors Service (MIS). MA's external revenue increased by 8% to $859 million, driven by strong demand in its Decision Solutions and Research & Insights lines. MIS also reported an 8% rise in external revenue, reaching $1.065 billion, with notable growth in structured finance and public finance sectors. The company’s adjusted operating income improved by 10% to $994 million, indicating effective cost management despite rising expenses.

In terms of strategic developments, Moody's completed the acquisition of CAPE Analytics in January 2025, enhancing its capabilities in AI-powered property risk intelligence. The company is also undergoing a Strategic and Operational Efficiency Restructuring Program aimed at realigning operations and achieving annualized savings of $250 million to $300 million. This program includes staff reductions and the exit from certain real estate leases, with restructuring costs amounting to $33 million in the first quarter.

Operationally, Moody's reported a slight decrease in employee headcount, with approximately 16,000 employees as of March 31, 2025, down from 16,200 a year earlier. The company continues to focus on geographic expansion, with revenue growth in both the U.S. and international markets. U.S. revenue increased by 10%, while non-U.S. revenue grew by 5%, indicating a balanced performance across regions.

Looking ahead, Moody's expects continued revenue growth driven by its strategic initiatives and market demand for its services. The company anticipates that the restructuring program will enhance operational efficiency and support future investments. Moody's remains committed to returning value to shareholders through dividends and share repurchases, with approximately $1.2 billion of share repurchase authority remaining as of the end of the first quarter.