Moody's 3Q Net Up, Company Backs 2026 EPS View, Even as Leveraged Debt Slowdown Weighs
By Rob Curran
Moody's logged higher third-quarter net income and reiterated full-year growth targets even as a slowdown in private-equity activity offset the impact of the artificial-intelligence finance boom on credit-ratings revenue.
The New York credit-ratings and research company posted earnings of $734 million, or $4.24 a share, up from $646 million, or $3.60 a share, a year earlier.
Stripping out certain one-time items, adjusted earnings were $4.14 a share, short of the average Wall Street peg of $4.25 a share, as tallied by FactSet.
Revenue rose 1% to $2.02 billion, shy of the average analyst estimate of $2.08 billion.
At Moody's Investors Service, the credit-ratings agency, revenue fell 1% to $1.09 billion, reflecting lower issuance of leveraged finance debt. In recent months, leveraged-buyout activity has slowed, partly due to rising interest rates. Investment-grade transaction revenue grew 18% in the third quarter, amid robust demand for AI infrastructure financing.
The firm's analytics unit notched revenue of $936 million, up 3% from a year earlier.
For 2026, Moody's backed its prior forecast for earnings in a range between $16 and $16.50 a share and adjusted earnings between $16.50 and $17 a share. The company also reiterated its projection for 2026 revenue growth in the high-single-digit percentage range.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
October 21, 2026 07:39 ET (11:39 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
6 ETFs To Diversify Away From AI
Are TIPS ETFs the Best Way to Fight Inflation?
What’s Ahead for Stocks This Quarter—and Where to Invest
United States