Moody's Corporation stock research
FY2026 Q1
Moody's (MCO) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue increased at a slower pace relative to revenue, leading to a higher gross margin versus the prior quarter and a stable gross margin compared to the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, while cost of revenue increased at a slower pace relative to revenue, leading to a higher gross margin versus the prior quarter and a stable gross margin compared to the same quarter last year.
- The gross margin improved sequentially as revenue grew faster than cost of revenue. Compared to the same quarter last year, the gross margin was unchanged, indicating consistent profitability from revenue after deducting cost of revenue.
- Current quarter revenue is higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit is also higher in both comparisons. The gross margin improved relative to the prior quarter but was the same as the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.5%
Gross profit
$1.5B
Revenue
$2.1B
Cost of revenue
$531.0M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $2.1B | $1.5B | $531.0M | 74.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+1.0 pts
Year-over-year change
Mar 31, 2025
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as revenue grew faster than cost of revenue. Compared to the same quarter last year, the gross margin was unchanged, indicating consistent profitability from revenue after deducting cost of revenue.
Current quarter revenue is higher than both the immediately preceding quarter and the same quarter one year earlier. Gross profit is also higher in both comparisons. The gross margin improved relative to the prior quarter but was the same as the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue, as a faster increase in cost of revenue could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Moody's Corporation (MCO) | 74.5% |