Moody's Q1 2025: Key Contradictions in M&A Growth, Private Credit, and AI Revenue Trajectory
Wednesday, Apr 23, 2025 9:48 am ET
2min read M&A contribution to revenue growth, private credit contribution to revenue, data & information ARR growth and impact of government contracts, AI-related revenue trajectory, and MA ARR growth and impact of KYC products are the key contradictions discussed in moody's latest 2025Q1 earnings call.
Revenue and Earnings Growth:
- moody's corporation reported revenue of $3.4 billion for Q1 2025, up 9% year-over-year, with adjusted EPS of $2.18, rising by 12% year-over-year.
- Growth was driven by strong performance across its credit ratings, research, and analytics segments, with particular Notably, the Credit Ratings segment experienced a 12% increase in revenue, largely due to growth in public obligation ratings and continued strength in corporate credit ratings.
Credit Ratings and Public Obligations:
- The Credit Ratings segment reported a revenue increase of 12% year-over-year, with growth primarily driven by public obligation ratings.
- This growth was supported by an increase in new public obligation rating assignments, reflecting a broader market recovery and increased issuance activity.
Analytics and Research Performance:
- The Research and Analytics segment reported a revenue increase of 7% year-over-year, driven by strong performance in Moody's Analytics Solutions and Risk & Economic Research & Data offerings.
- The growth in these segments was attributed to increased demand for risk management solutions and economic research data, particularly in light of evolving market conditions.
MCO Total Revenue YoY, Total Revenue
Revenue and Earnings Growth:
- moody's corporation reported revenue of $3.4 billion for Q1 2025, up 9% year-over-year, with adjusted EPS of $2.18, rising by 12% year-over-year.
- Growth was driven by strong performance across its credit ratings, research, and analytics segments, with particular Notably, the Credit Ratings segment experienced a 12% increase in revenue, largely due to growth in public obligation ratings and continued strength in corporate credit ratings.
Credit Ratings and Public Obligations:
- The Credit Ratings segment reported a revenue increase of 12% year-over-year, with growth primarily driven by public obligation ratings.
- This growth was supported by an increase in new public obligation rating assignments, reflecting a broader market recovery and increased issuance activity.
Analytics and Research Performance:
- The Research and Analytics segment reported a revenue increase of 7% year-over-year, driven by strong performance in Moody's Analytics Solutions and Risk & Economic Research & Data offerings.
- The growth in these segments was attributed to increased demand for risk management solutions and economic research data, particularly in light of evolving market conditions.
