How does Moody's (MCO) make money?

Moody's (MCO) generates revenue primarily from Moodys Analytics, which accounted for 63% of total revenue in TTM through Q1 2026. The company reported $7.87B in revenue and converted 31.7% of it into net profit, equivalent to roughly $2.50B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Moody's (MCO)?

Moody's (MCO) reported a gross profit margin of 69.7% in TTM through Q1 2026, equivalent to $5.49B in gross profit on $7.87B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Moody's (MCO)?

Moody's (MCO) reported an operating profit margin of 44.2% in TTM through Q1 2026, equivalent to $3.48B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Moody's (MCO)?

Moody's (MCO) reported a net profit margin of 31.7% in TTM through Q1 2026, equivalent to $2.50B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Moody's (MCO) profitable?

Yes. Moody's (MCO) reported $2.50B in net income for TTM through Q1 2026, with a net profit margin of 31.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Moody's (MCO) spend on capital expenditures?

Moody's (MCO) spent $91.00M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Moody's (MCO) generate?

Moody's (MCO) generated $2.99B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 38.0%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Moody's (MCO)?

Moody's (MCO) had an effective tax rate of 21.8% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Moody's (MCO)?

Moody's (MCO) reports revenue across 2 reportable product segments, led by Moodys Analytics at 63% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Moody's (MCO) generate most of its revenue?

International Regions is the largest geographic market for Moody's (MCO), accounting for 48.5% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Moody's Makes Money: 2026 Visual Revenue Map

Moody's (MCO) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 23, 2026).

Moody's (MCO) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Moody's (MCO) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Moodys Analytics	$4.96B	63%
Moodys Investors Service	$2.92B	37%
Total	$7.87B	100%

Moodys Analytics$4.96B
Moodys Investors Service$2.92B
Total$7.87B

Moody's (MCO) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Moody's (MCO), TTM through Q1 2026
Region	Revenue (USD)	% of total
International Regions	$3.38B	48.5%
EMEA	$2.42B	34.8%
Asia Pacific	$709.00M	10.2%
U S	$456.00M	6.5%
Total	$6.97B	100%

International Regions
EMEA
Asia Pacific
U S
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Moody's (MCO) reports revenue across 2 operating segments; the largest segment was Moodys Analytics at 63%, followed by Moodys Investors Service (37%). Separately, by end-market geography, International Regions accounted for 48.5% of revenue, followed by EMEA (34.8%) and Asia Pacific (10.2%).

Frequently asked questions

Data & methodology

Moody's (MCO) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation