Moody's Corporation stock research
FY2025 Q4
Moody's (MCO) Gross Margin — Quarter Ended Dec 31, 2025
Gross profit is revenue less cost of revenue, and gross margin represents this profit as a share of revenue. Compared to the preceding quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened; relative to the same quarter a year earlier, all three metrics were higher and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Gross profit is revenue less cost of revenue, and gross margin represents this profit as a share of revenue. Compared to the preceding quarter, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened; relative to the same quarter a year earlier, all three metrics were higher and gross margin improved.
- The strongest observable driver of gross margin is the relationship between revenue and cost of revenue. In the current quarter, revenue declined sequentially while cost of revenue increased, compressing margin; year-over-year, revenue growth outpaced cost growth, expanding margin.
- Sequentially, gross margin weakened as revenue decreased and cost of revenue increased. Year-over-year, gross margin improved as revenue grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.5%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$501.0M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.9B | $1.4B | $501.0M | 73.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.0 pts
Year-over-year change
Dec 31, 2024
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin is the relationship between revenue and cost of revenue. In the current quarter, revenue declined sequentially while cost of revenue increased, compressing margin; year-over-year, revenue growth outpaced cost growth, expanding margin.
Sequentially, gross margin weakened as revenue decreased and cost of revenue increased. Year-over-year, gross margin improved as revenue grew more than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its movement directly influences gross margin direction.