Moody's reaffirms 2026 outlook as third-quarter adjusted EPS rises 6% to $4.14

Moody's kept its full-year forecast intact on Wednesday after third-quarter profit grew even as revenue barely budged, with strength in investment-grade ratings offsetting a pullback in leveraged finance.

Revenue rose 1% to $2.02 billion from $2.01 billion, or 3% on an organic constant-currency basis, according to its earnings release filed with an 8-K. Diluted EPS increased 18% to $4.24 from $3.60, and adjusted diluted EPS rose 6% to $4.14 from $3.92.

The company reaffirmed 2026 guidance for diluted EPS of $16.00 to $16.50 and adjusted diluted EPS of $16.50 to $17.00.

Ratings and analytics

Moody's Investors Service revenue slipped 1% to $1.09 billion against what the company called a record prior-year comparison. Investment-grade revenue jumped 18%, which Moody's tied to large corporate financing, including AI-related and hyperscaler issuance. High-yield and leveraged loan transaction revenue fell 40% and 27%, respectively.

Moody's Analytics revenue grew 3% to $936 million, or 8% on an organic constant-currency basis. Annualized recurring revenue rose 8% to $3.7 billion, led by 10% growth in Decision Solutions. The segment's adjusted operating margin widened to 35.3% from 34.3%.

"It's in markets like these that our customers truly value our independent insights," Chief Executive Rob Fauber said in the release.

Cash returns

Year-to-date free cash flow, a non-GAAP measure, rose 22% to $2.2 billion. Moody's has returned about $3.1 billion to shareholders this year, including $2.6 billion of buybacks.

By the numbers

• Revenue: $2.02 billion, up 1%
• Diluted EPS: $4.24, vs. $3.60
• Adjusted diluted EPS: $4.14, vs. $3.92
• Moody's Analytics ARR: $3.69 billion, up 8%
• 2026 adjusted EPS guidance: $16.50 to $17.00, reaffirmed

Sources

1. Moody's Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release, filed Oct. 21, 2026, accession 0001628280-26-066594

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