How Does Moodys Make its Money?
Moody’s Corporation is a global risk assessment and analytics firm operating in two segments: Moody’s Investors Service (credit ratings) and Moody’s Analytics (financial intelligence and risk management tools). As one of only three major credit rating agencies globally (alongside S&P Global and Fitch), Moody’s plays a critical role in global capital markets — its ratings influence borrowing costs for companies, governments, and financial institutions. The company has been investing heavily in AI and data analytics to transform its Analytics business into a comprehensive integrated risk management platform.
Moodys (MCO) Business Model
Moodys operates in the financial services sector. Below is a summary of Moodys’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Moodys’ 2024 fiscal year filings with the SEC.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Moodys Competitors
Moodys’s key competitors and comparable public companies in the financial services sector include Sp Global, BlackRock, CME Group, and Goldman Sachs. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Moodys stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Moody’s Investors Service (Ratings) | $4,300 | $3,600 | +19.4% |
| Moody’s Analytics (Data & Software) | $3,200 | $3,000 | +6.7% |
| Total Revenue | $7,100 | $5,900 | +20.3% |
Moody’s Investors Service (Ratings) — 61% of Revenue
Moody’s Analytics (Data & Software) — 45% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $7,100 | $5,900 |
| Cost of Revenue | $1,800 | $1,600 |
| Gross Profit | $5,300 | $4,300 |
| Operating Expenses | $2,600 | $2,300 |
| Operating Income | $2,700 | $2,000 |
| Net Income | $2,200 | $1,800 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 74.6%
- Operating Margin: 38.0%
- Revenue Growth: 20.3%
Is Moodys Profitable?
Yes, Moodys is profitable. The company reported net income of $2,200 on total revenue of $7,100. With an operating margin of 38.0%, Moodys demonstrates solid profitability for the financial services sector. The gross margin of 74.6% reflects Moodys’ pricing power and cost structure.
What to Watch
- Debt issuance volumes as the primary driver of ratings revenue
- Moody’s Analytics SaaS transformation and recurring revenue growth
- AI product adoption across risk, compliance, and KYC use cases
- Competitive dynamics with S&P Global and new entrants in credit assessment
Moodys (MCO) Financial Summary
Moodys (MCO) is a financial services company that generated $7,100 in total revenue in fiscal year 2024. Revenue grew 20.3% year-over-year. The company earned $2,200 in net income, making it profitable. For a deeper look at Moodys’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.