How Moody's (MCO) Strong Q3 Results May Shape Investor Expectations Amid Uncertain Markets

• On October 22, 2025, Moody's Corporation reported third quarter earnings with sales reaching US$2.01 billion and net income rising to US$646 million, both higher than the same period last year, alongside improved earnings per share.
• This performance signals increased financial strength for Moody's and highlights its ability to deliver earnings growth even as questions remain around market stability and regulatory scrutiny.
• We will explore how Moody's strong quarterly results and higher profitability impact the company’s investment narrative and future outlook.

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Moody's Investment Narrative Recap

To be a Moody’s shareholder, you need to believe in the company’s capacity to sustain recurring revenue and earnings growth as demand for risk assessment, especially in private credit and data analytics, expands. Moody’s latest quarter delivered solid top- and bottom-line gains, but this does not materially shift the primary catalyst, increasing private credit market penetration, or the biggest risk posed by heightened regulatory attention that could impact profit margins via new compliance demands.

Among recent announcements, Moody’s Board amended its By-Laws to clarify and update procedures for director nominations and stockholder proposals. While unrelated to earnings, this governance update is meaningful for investors focused on clear corporate processes and transparency, both of which can support confidence as Moody's scales in fast-moving financial sectors.

Yet, despite robust results, investors should remain alert to how regulatory scrutiny, in contrast to prior periods, may introduce unexpected costs or complexities that ...

Read the full narrative on Moody's (it's free!)

Moody's narrative projects $9.0 billion revenue and $3.0 billion earnings by 2028. This requires 7.3% yearly revenue growth and a $0.9 billion earnings increase from $2.1 billion.

Uncover how Moody's forecasts yield a $545.50 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Nine separate fair value estimates from the Simply Wall St Community range from US$282.56 to US$545.50 per share. While your expectations may differ, it is important to keep in mind that new regulatory burdens remain the key risk that could impact Moody’s profitability and its outlook.

Explore 9 other fair value estimates on Moody's - why the stock might be worth as much as 12% more than the current price!

Build Your Own Moody's Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Moody's research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Moody's research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Moody's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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