Moody's: The Bears Are Losing Their Arguments (Q1 Earnings Review)
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Luca Socci7.11K FollowersFollow5ShareSavePlay(7min)CommentsSummaryMoody's delivered strong Q1 2026 results, beating top and bottom line estimates with 8% revenue growth and 13% adj. EPS growth.MCO's analytics segment demonstrates robust, AI-resilient growth, with ARR up 8% and Decision Solutions up 12%, highlighting the value of proprietary data and regulatory integration.AI disruption fears appear overblown; Moody's is leveraging AI to expand distribution and reinforce its moat, not erode it.I maintain a Buy rating, expecting MCO to re-rate to low 30x earnings, implying a $520–$550 price target as guidance and capital returns remain strong. SeanShot/iStock Unreleased via Getty Images Introduction It has been four years since I started writing on Seeking Alpha, and last month I had my first opportunity to be featured on the Portfolio Pulse video series on SA, comparing Moody's and S&P Global. Moody's (This article was written byLuca Socci7.11K FollowersFollowI’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and high returns on invested capital—is a more reliable driver of returns than valuation alone. I manage one of my portfolios publicly on eToro, where I qualified as a Popular Investor, allowing others to copy my real-time investment decisions. My background spans Economics, Classical Philology, Philosophy and Theology. This interdisciplinary foundation sharpens both my quantitative analysis and my ability to interpret market narratives through a broader, long-term lens. I started investing when I became a father. By managing wisely what I received and earn, I aim to ensure for me and my children that we don't have so much that we don't have to do anything, but that we have enough assets to be free to do what we want. The goal is not to free myself from work, but to make sure I can work in the place and in a way where I can fully express myself.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPGI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.