Moody's (MCO) Q2 FY26 earnings
Revenue $2.2B, up 15% from a year ago. Net income $878M.
Moody's grew revenue 15% to $2.2B, with Moody's Investors Service at $1.3B — 58% of the total. Net income of $878M, up 52%, includes the quarter's divestiture gain, marked on the card.
Recurring revenue rose every year, $3.4B to $4.8B. Transaction fell to $1.7B in 2022.
The filer's own split: transaction revenue prices the initial rating of a new debt issuance; recurring revenue is the monitoring fee on debt already rated. Recurring rose in all five drawn years — including 2022, when transaction collapsed with the issuance cycle.
Where the revenue came from
| Segment | Amount | % of revenue | Y/Y |
|---|---|---|---|
| MIS | $1.3B | 57.7% | +25% |
| MA | $925M | 42.3% | +4% |
Income statement, line by line
| Line | Amount | % of revenue | Y/Y |
|---|---|---|---|
| Revenue | $2.2B | +15% | |
| Cost of revenue | $518M | 23.7% | +6% |
| Gross profit † | $1.7B | 76.3% | +18% |
| Operating expenses † | $621M | 28.4% | +5% |
| Operating income | $1.0B | 47.9% | +28% |
| Pretax income | $1.2B | 53.6% | — |
| Income tax | $292M | 13.4% | +51% |
| Net income | $878M | 40.2% | +52% |
— means the filing states no comparable prior-year figure for that line, so we do not compute one.
The filing also prints consolidated net income of $879M, of which $1M belongs to outside co-owners of Moody's's subsidiaries (noncontrolling interests, in the filing's words). The figures above are net income attributable to Moody's, the filer's own line.
Effective tax rate: 24.9%. That is tax as a share of pretax income. The 13.4% in the column above is tax as a share of revenue, which is not a tax rate.
† The filing doesn't print this line. We calculated it from the filed figures; it adds up to the dollar.
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Jun 30, 2026 | $2.2B | $878M | 40.2% |
| Mar 31, 2026 | $2.1B | $661M | 31.8% |
| Dec 31, 2025 | $1.9B | $610M | 32.3% |
| Sep 30, 2025 | $2.0B | $646M | 32.2% |
| Jun 30, 2025 | $1.9B | $578M | 30.5% |
| Mar 31, 2025 | $1.9B | $625M | 32.5% |
| Dec 31, 2024 | $1.7B | $395M | 23.6% |
| Sep 30, 2024 | $1.8B | $534M | 29.5% |
Held by tracked 13F managers
MOODYS CORP (COM): 17 of 69 tracked managers reported holding it — $18,806M across tracked reports, as filed.
13F reports arrive up to 45 days after quarter end and may be amended; totals sum across tracked reports, not unique economic ownership.
Get the next Moody's card when it files — free, one issue a week, no ratings. Subscribe on Substack.