MCO

Moody's reported Q3 2026 adjusted earnings of $4.14 per share, missing the consensus estimate of $4.25, though earnings grew 6% year-over-year. Revenues rose 1% to $2.02B but fell short of expectations.

The results were pressured by increased operating expenses and a 1% decline in Moody's Investors Service revenues due to lower leveraged finance issuance, partially offset by 3% growth in Moody's Analytics. The company reaffirmed its 2026 guidance.

Zacks Research Daily features analysis of 12 major stocks on October 20, 2026. SAP benefits from strong AI strategy and large deal bookings despite underperformance, while Accenture faces economic uncertainty but gains from enterprise transformation demand.

Moody's outperforms its industry with strong earnings, while Peoples Bancorp shows margin expansion but faces credit risks. Additional coverage includes Nucor, Tenet Healthcare, Toast, and other companies with mixed growth prospects.

Moody's is set to report Q3 2026 earnings on October 21, with consensus estimates projecting 8.4% earnings growth and 2.7% revenue growth to $2.06 billion. The MIS division is expected to benefit from healthy bond issuance, though Corporate Finance revenues are projected to decline 8.9% year-over-year.

Moody's Analytics division is anticipated to grow 2.9% driven by recurring subscriptions and AI tools. However, the company has a negative Earnings ESP of -1.46%, suggesting low probability of beating estimates.