Moody's Corporation (MCO) is a high-quality business with strong growth prospects, but after a recent 15% rally, I now rate it 'Hold' due to valuation concerns. MCO delivered solid Q1/26 results: 8.1% revenue growth, 7.8% EPS growth, and 25.6% free cash flow growth, with both Analytics and Investor Services segments performing well. Management guides for high-single-digit revenue growth and 9–14% EPS growth in 2026, supported by $5 trillion in upcoming debt refinancing and robust M&A activity.
Moody's (MCO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Moody's Corporation is well positioned to benefit from surging corporate debt issuance, with its MIS segment acting as a tollbooth for global credit ratings. MCO's Q1 revenue grew 8.1% year-over-year, driven by record investment-grade issuances and robust demand for AI-related financing from hyperscalers. The company maintains strong financial health (A- S&P rating), a 16-year dividend growth streak, and trades at a 7% discount to a $490 fair value estimate.
For most of their history, the two companies that dominate credit ratings have been valued as steady, single franchises. In early 2026 the split inside them came into view.
Moody's Corporation (MCO) Discusses Generative AI Strategy and Agentic Workflow Solutions for Enhanced Customer Insights Transcript
Moody's Corporation (MCO) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript
Moody's (MCO) reported earnings 30 days ago. What's next for the stock?
Moody's Corporation's ordinary shares have underperformed YTD, but I view AI disruption fears as overstated and see recent weakness as a buying opportunity. The analytics segment's core value lies in proprietary data, expert insights, and regulatory compliance, which AI tools cannot easily replicate or replace. The Investor Services segment has shown robust growth. Tight credit spreads and relatively low real borrowing rates might sustain issuances for an extended period.
Moody's Corporation (MCO) Presents at Barclays 18th Annual Americas Select Conference Transcript
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Cwm LLC boosted its holdings in Moody's Corporation (NYSE: MCO) by 65.4% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 8,271 shares of the business services provider's stock after purchasing an additional 3,269 shares during the period. Cwm LLC's holdings in Moody's were
Revenue Growth: MIS and MA revenues grew by 8%.Adjusted Operating Margin: Increased by 150 basis points to 53.2%.Adjusted Diluted EPS: $4.33, up 13% year-over-