Moody's MCO Q2 2026: 10% EPS Beat Fueled by 31% Issuance Surge
As seen on the 24/7 Wall St. homepage on July 22, 2026.
Moody's crushed second quarter with a 10% EPS beat on back of a 31% surge in rated issuance volumes, while management raised full-year share repurchase guidance to $3 billion and narrowed EPS guidance higher, signaling sustained strength in capital markets.
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Moody's reported second-quarter 2026 earnings per share of $4.68, clearing the consensus estimate of $4.25 by roughly 10%. Revenue came in at $2.185 billion, about 5% above the $2.083 billion Wall Street had expected. The standout driver was a 31% surge in rated issuance volumes, reflecting a robust appetite in credit markets that fed directly into Moody's core ratings business.
The strong quarter gave management enough confidence to raise its full-year share repurchase guidance to $3 billion and to narrow its full-year EPS guidance range to the upside. Those moves signal that Moody's leadership sees the favorable issuance environment as durable rather than a one-quarter anomaly, and the buyback commitment adds a tangible return-of-capital floor for shareholders.
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The Q2 2026 result is also the latest in a consistent run of beats: Moody's has topped EPS estimates in each of the past eight reported quarters, with the margin of outperformance widening materially from Q1 2026's smaller beat of $4.33 reported versus $4.22 estimated. Investors will be watching whether issuance volumes can hold at elevated levels and whether management follows through on the raised repurchase target as the year progresses.
Mentioned: MCO