Credit rating agency Moody's (NYSE:MCO) missed Wall Street’s revenue expectations in Q3 2026, with sales flat year on year at $2.02 billion. Its non-GAAP profit of $4.14 per share was 2.5% below analysts’ consensus estimates.
Is now the time to buy Moody's? Find out by accessing our full research report, it’s free.
Moody's (MCO) Q3 2026 highlights:
- Revenue: $2.02 billion vs analyst estimates of $2.07 billion (flat year on year, 2.4% miss)
- Pre-tax Profit: $968 million (47.8% margin)
- Adjusted EPS: $4.14 vs analyst expectations of $4.25 (2.5% miss)
- Management slightly raised its full-year Adjusted EPS guidance to $16.75 at the midpoint
- Market Capitalization: $82.32 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 performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Moody's grew its revenue at a mediocre 6.5% compounded annual growth rate. 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 8.9% over the last two years is above its five-year trend, suggesting some bright spots. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Moody’s $2.02 billion of revenue was flat year on year, falling short of Wall Street’s estimates.
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Key takeaways from Moody’s Q3 results
We struggled to find many positives in these results. Its EBITDA missed and its revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 2.9% to $462.61 immediately following the results.
Moody’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).