-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Moody's Corporation (MCO) posted solid Q1 2026 results with operating EPS of $4.33 vs. $3.83 in the prior year, $0.11 above consensus. Revenue of $2.08B beat consensus by 1% and rose 8% Y/Y, though growth decelerated from the prior quarter's 13% as expected given tougher conditions. Operating leverage remained strong with adjusted operating margin expanding 150 bps to 53.2% as 8% revenue growth was achieved with only 7% expense growth. MIS delivered record Q1 revenue of $1.15B with growth slowing to 8% from 17% in Q4, benefiting from over $2T in rated issuance and record Investment Grade issuance, due to strong investor demand and AI-related financing from hyperscalers. Corporate Finance led MIS growth at +12% Y/Y, while Infrastructure Finance posted its strongest quarter since 2020. MA sustained growth with revenue of $926M (+8% Y/Y), where recurring revenue represented 98% of total MA revenue and grew 11% Y/Y, demonstrating subscription model resilience with Decision Solutions leading at +7% Y/Y.