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How Moody's (MCO) makes money
Moody's (MCO) made $2.0B of revenue in the third quarter 2026 (Q3 2026), +0.8% from a year earlier. Recurring Revenue brought in $1.3B (64%); Transaction Revenue brought in $722M (36%). Of every dollar of revenue, 45¢ was left as operating profit, 36¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Recurring Revenue | $1.3B | 64.3% | +1% | +7% |
| Transaction Revenue | $722M | 35.7% | -20% | -8% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $2.0B | 100.0% |
| Operating profit | $906M | 44.8% |
| Income tax | $232M | 11.5% |
| Net earnings | $736M | 36.4% |
| Operating cash flow | $753M | 37.2% |
| Free cash flow | $668M | 33.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $2.0B | +0.8% |
| Q2 2026 | $2.2B | +15% |
| Q1 2026 | $2.1B | +8% |
| Q4 2025 | $1.9B | +13% |
| Q3 2025 | $2.0B | +11% |
| Q2 2025 | $1.9B | +4% |
| Q1 2025 | $1.9B | +8% |
From Moody's 10-Q filed Oct 21, 2026 (on EDGAR).
Questions
How does Moody's make money?
Moody's (MCO) made $2.0B of revenue in the third quarter 2026 (Q3 2026), +0.8% from a year earlier. Recurring Revenue brought in $1.3B (64%); Transaction Revenue brought in $722M (36%). Of every dollar of revenue, 45¢ was left as operating profit, 36¢ was left as net earnings.
What is Moody's biggest business?
Recurring Revenue: $1.3B in the third quarter 2026, 64% of revenue, +7% from a year earlier.
What is Moody's profit margin?
Net earnings were $736M, 36.4% of revenue, in the third quarter 2026; the operating margin was 44.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.