Moody's Corporation (NYSE:MCO) Reports Strong Q2 Earnings and Receives Price Target Increase

Font: Financial Modeling Prep  • Jul 22, 2026

• Morgan Stanley raised its price target for Moody's Corporation (NYSE:MCO) to $512, indicating potential for growth.
• Moody's Corporation reported strong Q2 results, with adjusted earnings per share of $4.68 beating estimates and quarterly sales growing 15% to $2.19 billion.
• Profitability improved significantly, with operating income rising to $1.05 billion and operating margin increasing to 47.9%, alongside $688 million in free cash flow.

Moody's Corporation (NYSE:MCO) is a global risk assessment firm. It operates two main segments: Moody's Investors Service, which provides credit ratings on debt, and Moody's Analytics, which offers financial intelligence and analytical tools. The company competes with other major rating agencies like S&P Global and Fitch Group.

Following strong performance, Morgan Stanley raised its price target for Moody's Corporation to $512 from $496. A price target is an analyst's projection of a stock's future price. At the time, the stock was trading at $489.79, which is 4.53% below the new target, suggesting potential for growth.

This optimism is supported by Moody's Corporation's second-quarter results. The company reported adjusted earnings per share of $4.68, beating analyst estimates of $4.24. As highlighted by Zacks Investment Research, this represents an earnings surprise of over 10%. Quarterly sales also grew 15% year-over-year to $2.19 billion.

The revenue growth was broad-based. The Moody's Investors Service division saw its revenue climb by a significant 25%. Meanwhile, the Moody's Analytics segment grew its revenue by 4%, with its Data and Information services showing a strong 9% increase, as noted by Benzinga in its reporting.

Profitability also improved. Operating income, the profit from core business activities, rose to $1.05 billion. This pushed the company's operating margin to 47.9% from 43.1% a year ago. Moody's Corporation also generated $688 million in free cash flow, which is cash available after funding operations and capital spending.