Strong Revenue Growth But Slower Compared to Last Year: Moody's reported Q2 2025 revenue of $1.9 billion, a 4% year-over-year increase, compared to 22% growth in Q2 2024. The adjusted diluted EPS grew by 9% to $3.56, reflecting a 130 basis point improvement in adjusted operating margin to 50.9%. However, revenue growth appears to be moderating due to prior year comparisons.

Guidance Adjustments: The company narrowed its guidance for rated issuance and MIS revenue, now expecting low to mid-single-digit growth in MIS for the full year 2025. Adjusted operating margin guidance remains at 61%-62%, with expectations of mid-single-digit growth at the MCO (Moody's Corporation) level and adjusted diluted EPS seeing an implication of 10% growth at the midpoint versus last year.

Opportunities in Private Credit: Private credit has emerged as a significant growth driver, with related revenue growing 75% year-over-year despite a challenging issuance environment. Investments in this sector are positioning Moody's as a key player in providing essential insights and Ratings, thereby fostering long-term growth in this area.