Moody's Corporation stock research
FY2025 Q3
Moody's (MCO) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster pace than cost of revenue, leading to an improved gross margin.
- The primary observable driver was revenue growth that exceeded the change in cost of revenue. Sequentially, cost of revenue was nearly stable while revenue grew; year over year, cost of revenue declined as revenue increased.
- Sequentially, gross margin improved as revenue growth outpaced a modest increase in cost of revenue. Year over year, gross margin strengthened as revenue rose and cost of revenue fell.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.5%
Gross profit
$1.5B
Revenue
$2.0B
Cost of revenue
$492.0M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+3.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $1.7B | $1.2B | $497.0M | 70.3% |
| Mar 31, 2025 | $1.9B | $1.4B | $491.0M | 74.5% |
| Jun 30, 2025 | $1.9B | $1.4B | $489.0M | 74.2% |
| Sep 30, 2025 | $2.0B | $1.5B | $492.0M | 75.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.2 pts
Year-over-year change
Sep 30, 2024
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was revenue growth that exceeded the change in cost of revenue. Sequentially, cost of revenue was nearly stable while revenue grew; year over year, cost of revenue declined as revenue increased.
Sequentially, gross margin improved as revenue growth outpaced a modest increase in cost of revenue. Year over year, gross margin strengthened as revenue rose and cost of revenue fell.
Monitor the relationship between revenue and cost of revenue, as cost stability has been a key factor in margin improvement.