How does Moody's (MCO) make money?

Moody's (MCO) generates revenue primarily from Moodys Analytics, which accounted for 61.8% of total revenue in TTM through Q2 2026. The company reported $8.16B in revenue and converted 34.3% of it into net profit, equivalent to roughly $2.8B 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 71.9% in TTM through Q2 2026, equivalent to $5.87B in gross profit on $8.16B 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 45.1% in TTM through Q2 2026, equivalent to $3.68B 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 34.3% in TTM through Q2 2026, equivalent to $2.8B 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 $2.8B in net income for TTM through Q2 2026, with a net profit margin of 34.3%. 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 $79M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 1.0% 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 $3.4B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 41.6%. 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 22.2% in TTM through Q2 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 61.8% of total revenue in TTM through Q2 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 Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 23, 2026).

Moody's (MCO) Revenue by Product Segment — TTM through Q2 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), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Moodys Analytics	$5.04B	61.8%
Moodys Investors Service	$3.12B	38.2%
Total	$8.16B	100%

Moodys Analytics$5.04B
Moodys Investors Service$3.12B
Total$8.16B

Moody's (MCO) Revenue by Geography — TTM through Q2 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 Q2 2026
Region	Revenue (USD)	% of total
International Regions	$3.44B	48.5%
EMEA	$2.46B	34.7%
Asia Pacific	$731M	10.3%
U S	$458M	6.5%
Total	$7.09B	100%

International Regions
EMEA
Asia Pacific
U S
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Moody's (MCO) reports revenue across 2 reportable product segments; the largest segment was Moodys Analytics at 61.8%, followed by Moodys Investors Service (38.2%). Geographically, International Regions accounted for 48.5% of revenue, followed by EMEA (34.7%) and Asia Pacific (10.3%).

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