Moody's Corporation's 10-Q: revenue up 9.0% over twelve months

Moody’s Corporation filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $8.18 billion, which rose 9.0% on the year before. That growth rate was down 2.7 percentage points on the rate a quarter earlier.

Profitability

The trailing gross margin was 74.6%. The trailing operating margin was 44.6%, up 2.7 percentage points from a year earlier.

The trailing net margin was 35.3%. Net income over the twelve months was $2.88 billion, which rose 28.5% on the year before.

Cash flow

Operating cash flow over the twelve months was $3.33 billion, up 22.5% on the year before. Capital spending was $352.0 million, or 4.3% of revenue.

Free cash flow, operating cash flow less capital spending, was $2.98 billion, up 24.1% on the year before. Free cash flow was 36.4% of revenue (the free-cash-flow margin), up 4.4 percentage points from a year earlier.

Share count

The average diluted share count fell 2.5% over the year.

Against its own history

Today’s free-cash-flow margin of 36.4% is higher than 94% of the company’s own past quarterly readings, which have ranged from 10.2% to 41.9%. Today’s operating margin of 44.6% is higher than 90% of the company’s own past quarterly readings, which have ranged from 17.7% to 47.2%.

Today’s twelve-month revenue growth rate of 9.0% is higher than 41% of the company’s own past quarterly readings, which have ranged from −12.1% to 22.8%.

Guidance

The company kept its Full Year 2026 guidance for Operating Margin: 44% to 45%. The company kept its Full Year 2026 guidance for Interest Expense, Net: $220.0 million to $240.0 million.

The company kept its Full Year 2026 guidance for Effective Tax Rate: 23% to 25%. The company kept its Full Year 2026 guidance for Diluted EPS: $16.00 to $16.50.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 26.8%, and 5 percentage points higher would raise it by 34.8%. A free-cash-flow margin 1 percentage point lower would lower it by 3.0%.

What to watch

The next filing will show whether the recent trends in revenue growth and operating margin continue to align with the company’s internal historical benchmarks. It will also reveal if the free-cash-flow margin remains positioned above the majority of past quarterly readings. Additionally, the report will indicate if the diluted share count trajectory supports the maintained guidance for diluted earnings per share.