April 22 - Moody’s reported a rise in profit for the first quarter, driven by continued customer demand for its research and analytics offerings and robust activity in its ratings business.
Profit attributable to the company was $661 million, or $3.73 per share, for the three months ended March 31, compared with $625 million, or $3.46 per share, in the same period a year earlier.
Revenue from Moody’s analytics division, which is primarily subscription-based, increased 8% in the quarter to $926 million. The company said the growth reflected strong demand for its research and analytics products.
Meanwhile, Moody’s investor service business - the unit that issues credit ratings - posted a record $1.15 billion in revenue, also up 8% from the prior-year period. Strong bond issuance supported the ratings business, according to the company.
"As AI adoption accelerates, it is driving demand for Moody’s decision-grade connected intelligence in highstakes environments," said Chief Executive Rob Fauber.
Moody’s said it raised its full-year adjusted earnings per share guidance to a range of $16 to $16.60, up from a prior outlook of $15 to $15.60 per share.
Despite the better-than-expected quarter and the higher outlook, Moody’s shares have fallen about 10% so far this year as of the last close.
Traders and market watchers pay close attention to Moody’s earnings because the company’s results can serve as an indicator of broader bond market demand given its wide industry reach. The firm’s mix of subscription analytics and ratings services provides a lens on both recurring revenue trends and capital markets activity.
The company’s performance comes amid a backdrop where borrowing and issuance activity face pressures from market volatility, concerns about private credit, and geopolitical uncertainty, factors Moody’s noted as weighing on investor sentiment.
Separately, the company’s results and outlook have drawn attention from financial research tools such as ProPicks AI, which evaluates stocks including Moody’s using numerous financial metrics. ProPicks AI highlights past winners in its strategies, including Super Micro Computer and AppLovin, while noting its data-driven approach to stock selection.
Key takeaways:
- Q1 profit rose to $661 million, or $3.73 per share, up from $625 million, or $3.46 per share, a year earlier.
- Analytics revenue, mainly subscription-based, grew 8% to $926 million; investor services revenue reached a record $1.15 billion, also up 8% year-over-year.
- Company raised full-year adjusted EPS guidance to $16.00 - $16.60 from $15.00 - $15.60, while shares are down about 10% year-to-date.