Credit rating agency Moody's (NYSE: MCO) announced better-than-expected revenue in Q3 CY2025, with sales up 10.7% year on year to $2.01 billion. Its non-GAAP profit of $3.92 per share was 6.4% above analysts’ consensus estimates.
Is now the time to buy Moody's? Find out by accessing our full research report, it’s free for active Edge members.
Moody's (MCO) Q3 CY2025 Highlights:
- Revenue: $2.01 billion vs analyst estimates of $1.96 billion (10.7% year-on-year growth, 2.4% beat)
- Pre-tax Profit: $867 million (43.2% margin, 23.3% year-on-year growth)
- Adjusted EPS: $3.92 vs analyst estimates of $3.68 (6.4% beat)
- Adjusted EPS guidance for the full year is $14.63 at the midpoint, beating analyst estimates by 3.6%
- Market Capitalization: $86.99 billion
Company Overview
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE: MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Moody’s revenue grew at a mediocre 7.1% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the financials sector, but there are still things to like about Moody's.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Moody’s annualized revenue growth of 14.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Moody's reported year-on-year revenue growth of 10.7%, and its $2.01 billion of revenue exceeded Wall Street’s estimates by 2.4%.
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Key Takeaways from Moody’s Q3 Results
It was great to see Moody’s full-year EPS guidance top analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $480.13 immediately after reporting.
Big picture, is Moody's a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
