Moody's Delivers Record Revenue Amidst Market Volatility
Moodys Corporation has released its first-quarter 2025 earnings report, showcasing a resilient performance amidst market turmoil. The company achieved a record $1.9 billion in revenue, representing an 8% year-over-year increase.
Both of Moodys' businesses demonstrated growth, with the firm's adjusted operating margin reaching 51.7%, a 100-basis-point improvement from the first quarter of last year. Adjusted diluted earnings per share (EPS) also grew by 14% to $3.83.
The Mortgage and Consumer Finance segment (MIS) delivered 8% revenue growth, driven by issuance growth of 9%. MIS achieved its highest-ever quarterly revenue of $1.1 billion, with an adjusted operating margin of 66%, a 140-basis-point increase from the same period last year.
Private credit emerged as a significant contributor to growth, particularly in Structured Finance, where 20% of first-quarter revenue growth was attributable to private credit deals. The company processed 143 private credit-related transactions, a substantial increase from the 69 deals recorded in the first quarter of 2024.
The firm's research and webcasts saw engagement levels surge by 2-3 times compared to more stable market conditions. A recent webinar on tariffs attracted approximately 3,000 registrants across 89 countries.
Moodys' CEO, Robert Fauber, highlighted the company's confidence in its market position and its ability to strengthen earnings power despite the current environment. He emphasized that customers rely heavily on Moodys during times of uncertainty, leveraging the firm's vast proprietary data, insights, and software solutions.
The company maintains a positive outlook for select metrics, revising its guidance for full-year 2025. Moody's adjusted operating margin is expected to reach 52% or higher, while adjusted diluted EPS may exceed $16 per share, representing a 14% increase from the previous year.
Moodys' CEO, Robert Fauber, attributed the company's success to its ability to adapt and navigate through complex market conditions. He stated that the firm has a deep understanding of credit impacts on countries, industries, and companies, which enables it to deliver critical insights and solutions during periods of uncertainty.
