Moody’s Corp (NYSE:MCO) stock fell 1.84% (As on February 19, 11:31:00 AM UTC-4, Source: Google Finance) though the company reported fourth quarter earnings that exceeded analyst expectations, driven by strong performance across both its ratings and analytics segments. Moody’s Investors Service (MIS), the company’s ratings division, saw revenue jump 17% to $946 million compared to the prior-year period. The growth was primarily fueled by robust Investment Grade issuance activity, including several sizable AI-related deals, and record-high fourth-quarter issuance in Infrastructure Finance. Corporate Finance revenue growth was primarily driven by robust Investment Grade issuance activity, including several sizable AI-related deals. Revenue in Public, Project, and Infrastructure Finance grew 30%, driven by heightened activity in U.S. Public Finance and a record-high fourth quarter issuance in Infrastructure Finance, primarily led by Investment Grade issuers. Moody’s Analytics (MA) revenue increased 9% to $943 million, or 6% on an organic constant currency basis, versus the prior-year period, including 12% growth in Decision Solutions, 6% in Research and Insights and 8% in Data & Information, each on a reported basis. Recurring revenue, comprising 97% of total MA revenue, grew 11% on a reported and 8% on an organic constant currency basis. Transaction revenue declined by 30%, reflecting MA’s ongoing strategic shift towards subscription based solutions

MCO in the fourth quarter of FY25 has reported the adjusted earnings per share of $3.64, beating the analysts’ estimates for the adjusted earnings per share of $3.41. The company h.ad reported the adjusted revenue growth of 13 percent to $1.89 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.86 billion. Cash flow from operations was $2,901 million and free cash flow was $2,575 million

Additionally, the board declared a quarterly dividend of $1.03 per share, payable on March 13, 2026, to stockholders of record as of March 2, 2026. During the fourth quarter of 2025, Moody’s repurchased 0.9 million shares at an average cost of $485.55 per share and issued net 48 thousand shares as part of its employee stock-based compensation programs. As of December 31, 2025, Moody’s had 177.5 million shares outstanding, with approximately $4.0 billion of share repurchase authority remaining. On October 21, 2025, the Moody’s Board of Directors authorized $4.0 billion in share repurchase authority. As of December 31, 2025, Moody’s had $7 billion of outstanding debt and an undrawn $1.25 billion revolving credit facility

For the full year 2026, Moody’s expects revenue to increase in the high-single-digit percent range, with adjusted earnings projected between $16.40 and $17.00 per share. The company plans to repurchase approximately $2 billion in shares, subject to available cash and market conditions.