Moody’s Corporation (MCO) Q4 2025 Financial Results Summary
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Moody’s Corporation (MCO) Q4 2025 Financial Results Summary
Release Date: February 18, 2026
Moody’s Corporation (NYSE: MCO) has reported its financial results for the fourth quarter and full year of 2025, highlighting significant growth across various metrics. Below is a concise overview of the key learnings from the report, clearly identifying growth percentages and initiatives.
Financial Summary
Revenue
- Total Revenue:
- Q4 2025: $1.9 billion, up 13% from Q4 2024.
- FY 2025: $7.7 billion, up 9% from FY 2024.
- Moody’s Analytics (MA) Revenue:
- Q4 2025: $943 million, up 9% from Q4 2024.
- FY 2025: $3.6 billion, up 9% from FY 2024.
- Moody’s Investors Service (MIS) Revenue:
- Q4 2025: $946 million, up 17% from Q4 2024.
- FY 2025: $4.1 billion, up 9% from FY 2024.
- Impact of Currency:
- Q4 2025: Favorably impacted MCO revenue by 2%.
- FY 2025: Favorably impacted MCO revenue by 1%.
Earnings
- Diluted Earnings Per Share (EPS):
- Q4 2025: $3.41, up 57% from Q4 2024.
- FY 2025: $13.67, up 21% from FY 2024.
- Adjusted Diluted EPS:
- Q4 2025: $3.64, up 39% from Q4 2024.
- FY 2025: $14.94, up 20% from FY 2024.
Operating Expenses
- Operating Expenses:
- FY 2025: Increased by 4% compared to FY 2024, with increases driven primarily by investment and operational spending (3%) and acquisition-related costs (2%).
- Operating Margin:
- Q4 2025: 40.8%, with Adjusted Operating Margin at 48.7%.
- FY 2025: 43.4%, with Adjusted Operating Margin at 51.1%.
Cash Flow and Capital Allocation
- Cash Flow from Operations:
- $2,901 million in FY 2025.
- Free Cash Flow:
- $2,575 million in FY 2025.
- Capital Returned to Shareholders:
- Quarterly Dividend: On February 10, 2026, Moody’s declared a quarterly dividend of $1.03 per share, payable on March 13, 2026.
- Share Repurchase: During Q4 2025, Moody’s repurchased 0.9 million shares at an average cost of $485.55 per share and issued net 48 thousand shares as part of employee compensation programs. Moody’s had approximately $4.0 billion of share repurchase authority remaining as of December 31, 2025.
Segment Details
Moody’s Analytics
- Q4 2025 Revenue Growth:
- 9% increase overall, with 12% growth in Decision Solutions.
- Recurring Revenue: Grew by 11% on a reported basis.
Moody’s Investors Service
- Q4 Revenue Growth:
- 17% increase, the strongest fourth quarter on record.
- Driven by robust Investment Grade issuance activity, including significant AI-related deals.
Outlook for 2026
Moody’s has provided guidance reflecting expectations for further growth in various areas:
- Revenue Growth: Projected to increase in the high-single-digit percent range.
- Operating Expenses: Expected to rise in the mid-single-digit percent range.
- Diluted EPS: Expected between $15.00 to $15.60.
- Adjusted Diluted EPS: Expected between $16.40 to $17.00.
Macroeconomic Assumptions:
- U.S. GDP Growth: 1.5% – 2.5%
- Euro Area GDP Growth: 1.0% – 2.0%
- Global GDP Growth: 2.0% – 3.0%
Conclusion
Moody’s Corporation’s fourth quarter and full-year results for 2025 depict a successful year with significant revenue increases, improved margins, and strong cash flow. The outlook for 2026 suggests continued growth with set targets for earnings and revenue expansion. The company remains committed to rewarding shareholders through dividend payments and share repurchases.
Note: The amounts in the following tables are in millions.
| Three Months Ended | Year Ended | |||
|---|---|---|---|---|
| Amounts in millions, except per share | December 31, 2025 | 2024 | December 31, 2025 | 2024 |
| Revenue | $1,889 | $1,672 | $7,718 | $7,088 |
| Expenses: | ||||
| Operating | 502 | 497 | 1,973 | 1,945 |
| Selling, general and administrative | 467 | 442 | 1,803 | 1,735 |
| Depreciation and amortization | 124 | 113 | 480 | 431 |
| Restructuring | 27 | 46 | 108 | 59 |
| Charges related to asset abandonment | -1 | 13 | 3 | 43 |
| Total expenses | 1,119 | 1,111 | 4,367 | 4,213 |
| Operating income | 770 | 561 | 3,351 | 2,875 |
| Non-operating (expense) income, net | ||||
| Interest expense, net | -33 | -52 | -213 | -237 |
| Other non-operating income, net | -73 | 16 | -31 | 61 |
| Gain on divestiture of business | 23 | — | 23 | — |
| Total non-operating (expense) income, | -83 | -36 | -221 | -176 |
| net | ||||
| Income before provision for income taxes | 687 | 525 | 3,130 | 2,699 |
| Provision for income taxes | 76 | 130 | 668 | 640 |
| Net income | 611 | 395 | 2,462 | 2,059 |
| Less: Net income attributable to | 1 | — | 3 | 1 |
| noncontrolling interests | ||||
| Net income attributable to Moody’s | $610 | $395 | $2,459 | $2,058 |
| Earnings per share attributable to | ||||
| Moody’s common shareholders | ||||
| Basic | $3.43 | $2.18 | $13.73 | $11.32 |
| Diluted | $3.41 | $2.17 | $13.67 | $11.26 |
| Weighted average number of shares | ||||
| outstanding | ||||
| Basic | 177.9 | 180.8 | 179.1 | 181.8 |
| Diluted | 178.7 | 181.7 | 179.9 | 182.7 |
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $2,384 | $2,408 |
| Short-term investments | 64 |