Credit rating agency Moody's (NYSE:MCO) announced better-than-expected revenue in Q3 CY2025, with sales up 10.7% year on year to $2.01 billion. Its non-GAAP profit of $3.92 per share was 6.4% above analysts’ consensus estimates.

Is now the time to buy Moody's? Find out in our full research report.

Revenue: $2.01 billion vs analyst estimates of $1.96 billion (10.7% year-on-year growth, 2.4% beat)

Pre-tax Profit: $867 million (43.2% margin, 23.3% year-on-year growth)

Adjusted EPS: $3.92 vs analyst estimates of $3.68 (6.4% beat)

Adjusted EPS guidance for the full year is $14.63 at the midpoint, beating analyst estimates by 3.6%

Market Capitalization: $86.99 billion

Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Regrettably, Moody’s revenue grew at a mediocre 7.1% compounded annual growth rate over the last five years. This wasn’t a great result compared to the rest of the financials sector, but there are still things to like about Moody's.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Moody’s annualized revenue growth of 14.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Moody's reported year-on-year revenue growth of 10.7%, and its $2.01 billion of revenue exceeded Wall Street’s estimates by 2.4%.

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It was great to see Moody’s full-year EPS guidance top analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $480.13 immediately after reporting.

So do we think Moody's is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.