Financial Performance Highlights - Moody's achieved its second-highest Q2 revenue on record[9] - Moody's Analytics (MA) Annualized Recurring Revenue (ARR) reached $33 billion, an increase of 8% year-over-year[9] - Adjusted Operating Margin increased by 130 basis points to 509%[12] - Adjusted Diluted EPS increased by 9% to $356[12] Moody's Investors Service (MIS) Performance - MIS revenue outpaced issuance by approximately 12%[13] - MIS achieved an Adjusted Operating Margin of 642%, up 100 basis points[12, 16] - Total MIS rated issuance guidance was updated to reflect a decrease in the low-single-digit to mid-single-digit percent range[27, 36] Moody's Analytics (MA) Performance - MA experienced strong recurring revenue growth, with recurring revenue accounting for 96% of total revenue[19] - MA's Adjusted Operating Margin increased by 360 basis points to 321%[12, 19] - Decision Solutions led with 10% ARR growth[12] - MA revenue grew by 11% year-over-year[19] Updated Full Year 2025 Guidance - MCO revenue growth is projected to be in the mid-single-digit percent range[10] - Adjusted Diluted EPS is now expected to be in the range of $1350 to $1400[12] - The company plans to repurchase at least $13 billion in shares[39]

Core Insights - Moody's (MCO) is set to announce its second-quarter 2025 results on July 23, with expectations of limited revenue growth in its Corporate Finance line, which is the largest revenue contributor within the Moody's Investors Service (MIS) division [1][10] - Global bond issuance activity showed some health, but there was a significant slowdown in leveraged loan issuance compared to the previous year [1][2] Corporate Finance - The consensus estimate for Corporate Finance revenues is $492 million, indicating a 6.3% decline year-over-year [2][10] - Weaker leveraged loan issuance, attributed to lower repricing activity and increased corporate debt spreads, has notably impacted revenue [2][10] Financial Institutions and Other Segments - The Financial Institutions business line is expected to generate revenues of $198 million, reflecting a year-over-year increase of 1.5% [3] - Public, Project, and Infrastructure Finance revenues are estimated at $164 million, suggesting a 6.5% increase [3] Structured Finance - Quarterly issuance volumes for collateral debt obligations were strong, but commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) saw a decline, leading to a projected 6.1% drop in Structured Finance revenues to $123 million [4][10] Overall MIS Division Performance - The consensus estimate for total MIS division revenues is $1.03 billion, indicating a 3.1% year-over-year decline [5] Moody's Analytics Division - Revenues from the Moody's Analytics (MA) division are projected to rise to $876 million, reflecting an 8.7% increase year-over-year due to rising demand and inorganic growth strategies [6][7] Key Developments - Moody's fully acquired ICR Chile in June, enhancing its presence in Latin America's credit markets, although the deal is not expected to materially impact 2025 financial results [8][9] Earnings Expectations - The Zacks Consensus Estimate for earnings is $3.42, representing a 4.3% increase from the previous year, while sales are expected to reach $1.85 billion, a 1.8% rise year-over-year [13]

Core Insights - Moody's Corporation has fully acquired ICR Chile, enhancing its position in Latin America's domestic credit markets. The financial terms of the deal remain undisclosed, and it is not expected to materially impact Moody's financial results for 2025 [1][7]. Group 1: Acquisition Details - The acquisition follows Moody's initial minority stake in ICR Chile from 2019, indicating a long-term strategic partnership [2][7]. - ICR Chile will continue to issue domestic ratings under its own methodologies, and will be integrated into Moody's Local in the coming months [2][3]. Group 2: Strategic Growth Initiatives - Moody's has been actively pursuing inorganic growth through strategic acquisitions, including recent purchases like Numerated Growth Technologies and GCR to strengthen its presence in Africa's domestic credit market [3][4]. - The acquisition of SCRiesgo in 2023 further solidified Moody's position in Central America and the Dominican Republic, contributing to revenue diversification [4]. Group 3: Expansion Beyond Credit Ratings - Moody's is also expanding its services beyond core credit ratings, with acquisitions such as CAPE Analytics and Praedicat aimed at enhancing insurance solutions and risk assessment strategies [5]. - The company is increasing its exposure to banking and insurance sectors while diversifying into professional services and ERS businesses [5]. Group 4: Market Performance - Over the past year, Moody's shares have increased by 14.8%, slightly trailing the industry's growth of 15.6% [6].

Financial Performance - Q1 2025 - S&P Global's revenue increased by 8% from $3491 million in 1Q 2024 to $3777 million in 1Q 2025[40] - The company's operating profit increased by 10% from $1738 million in 1Q 2024 to $1920 million in 1Q 2025, with the operating margin increasing by 100 bps to 508%[40] - Net income (less NCI) increased by 7% from $1258 million in 1Q 2024 to $1344 million in 1Q 2025, and diluted EPS increased by 9% from $401 to $437[40] - Adjusted Free Cash Flow, excluding certain items, decreased by 11% from $1018 million in 1Q 2024 to $901 million in 1Q 2025[40] Segment Performance - Q1 2025 - S&P Global Market Intelligence revenue increased by 5% to $1199 million, with recurring revenue accounting for 953% of the total[71] - S&P Global Ratings revenue increased by 8% to $1149 million, with transaction revenue up 7% to $620 million and non-transaction revenue up 10% to $529 million[79] - S&P Global Commodity Insights revenue increased by 9% to $612 million, with recurring revenue accounting for 794% of the total[86] - S&P Global Mobility revenue increased by 9% to $420 million, with recurring revenue accounting for 817% of the total[92] - S&P Dow Jones Indices revenue increased by 15% to $445 million, with recurring revenue accounting for 817% of the total[98] Updated 2025 Guidance - The company revised its revenue growth guidance from 5%-7% to 4%-6%[110, 116] - The company revised its operating profit margin guidance from 415%-425% to 425%-435%[110] - The company revised its diluted EPS guidance from $1420-$1445 to $1460-$1510[110]