Key facts
- Moody's reported a 25% increase in revenue from its investor services business to $1.26 billion.
- Rated issuance volume surged 33% in the quarter.
- Profit attributable to Moody's was $878 million, or $5.03 per share, up from $578 million a year earlier.
- The company raised the lower end of its annual profit forecast.
Moody's reported a significant increase in its second-quarter profit, largely attributed to a surge in bond issuance activity that bolstered its credit ratings business. The company's investor services segment saw revenue climb 25% year-over-year to $1.26 billion, with rated issuance volume jumping 33% due to historically low credit spreads creating a favorable debt market environment.
Overall profit attributable to Moody's reached $878 million, or $5.03 per share, a notable rise from $578 million, or $3.21 per share, in the same period last year. The analytics segment, which relies on fixed subscriptions, experienced a more modest 4% revenue increase.
In light of the strong performance, Moody's revised its annual profit forecast upwards, raising the lower end to $16.50 per share from $16.40. The company continues to expect revenue growth in the high-single-digit percentage range for 2026. Despite these positive results, Moody's stock has seen a 3.9% decline year-to-date.