Moody's Posts 4% Revenue Gain in Q2
Moody’s (NYSE:MCO), a major player in credit ratings, research, and risk analytics, released its latest quarterly results on July 23, 2025, for the second quarter of fiscal 2025. The most notable news was a solid beat on both adjusted earnings per share and revenue, with bottom-line performance at $3.56 (Non-GAAP EPS), well ahead of the $3.39 analyst estimate. Revenue reached $1.9 billion, exceeding consensus and rising from $1.82 billion a year earlier. These numbers reflect strong execution in Moody's Analytics, cost discipline, and expanding margins. The quarter was marked by resilient top-line growth and an improved operating profile, with management also raising the lower end of their adjusted full-year EPS outlook. Overall, the quarter showed expansion in recurring revenues, strong margin gains, and a continued focus on innovation, but signs of softness in select revenue streams and a dip in free cash flow suggest areas for investors to watch.
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Moody’s provides credit ratings, risk analysis, research, and financial analytics to customers including banks, governments, corporations, and investors. Its business model relies on two main segments: Moody’s Analytics, which delivers software and data services, and Moody’s Investors Service, which issues credit ratings and related research.
Source Fool.com
