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- **Revenue Record**: Q3 2025 revenue of $2.02 billion (+11% YoY) and EPS of $3.92 (+22% YoY) set new highs, with full-year guidance raised.
- **Margin Expansion**: Operating margin at 53% (+500 bps YoY), MIS margin at 65.2% (up 560 bps YoY), and MA margin at 34.3% (up 400 bps YoY).
- **Strategic Wins**: Japan's largest bank and Asian regulator adopt climate models; $3M+ AI deals with U.S. bank for credit automation.
- **Emerging Markets**: MERIS acquisition strengthens Middle East/Africa presence amid $30T+ debt growth in emerging markets.
- **M&A & Private Credit**: RAS at record levels, private credit revenue +60% YoY, and 200 new mandates in Q3.

**【CEO Summary Section】**
- **Record Revenue Growth**: Q3 2025 revenue reached $2.02 billion, up 11% YoY, driven by strong issuance across all asset classes. Adjusted diluted EPS of $3.92 rose 22% YoY.
- **Margins Expand**: Adjusted operating margin expanded to 53%, up 500 bps YoY, reflecting operational leverage. Full-year guidance raised for MIS and MA, with MCO revenue expected in the high single-digit range.
- **Strategic Wins**: Notable deals include Japan's largest bank using physical climate risk models and a multi-year deal with an Asian regulator for climate data. AI-driven solutions signed over $3 million in new business with a Tier 1 U.S. bank.
- **Emerging Markets Expansion**: Acquired majority stake in MERIS, Egypt's leading ratings agency, to deepen presence in Middle East and Africa.

**【CFO Financial Commentary】**
- **MIS Performance**: Ratings revenue grew 12% YoY, with transactional revenue up 14%. MIS margin expanded to 65.2%, up 560 bps YoY, driving full-year guidance to 63-64%.
- **MA Momentum**: Analytics revenue rose 9% YoY, with ARR at $3.4 billion (8% YoY). Margin improved to 34.3%, ahead of plans, with full-year outlook at 33%.
- **Free Cash Flow & Share Buybacks**: Free cash flow expected at $2.5 billion, with share repurchases of at least $1.5 billion, returning over 85% of FCF to shareholders.
- **Tax Rate Update**: One-time 200 bps tax benefit from pre-acquisition exposure resolution, neutral to net income.

**【Q&A Key Highlights】**
- **AI in Analytics**: Embedding AI into workflows via agents and APIs, with wins in credit memo automation and early warning systems. No seat-based exposure, focusing on customer needs.
- **Private Credit Growth**: 60% YoY revenue growth in private credit, driven by fund finance and BDCs. 200 new mandates in Q3, on track for 700-750 annually.
- **M&A Outlook**: RAS revenue at record levels, signaling 15-20% M&A issuance growth in 2025. 2026 outlook positive with tailwinds from spreads, Fed easing, and infrastructure investment.
- **Climate Solutions**: Wins outside insurance, including Japan's largest bank and Asian regulator, highlight RMS model utility beyond P&C.
- **MA Growth**: High single-digit ARR growth expected, with strategic investments in lending, KYC, and AI. Medium-term margin target of mid- to high-30s remains intact.

Moody's Corporation (MCO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MCO

MCO fundamentals

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