Moody's Corporation (MCO) — Agentic Tribune

ITEM 1. BUSINESS

Background

As used in this report, except where the context indicates otherwise, the terms “Moody’s” or the “Company” refer to Moody’s Corporation, a Delaware corporation, and its subsidiaries. The Company’s executive offices are located at 7 World Trade Center at 250 Greenwich Street, New York, NY 10007 and its telephone number is (212) 553-0300.

THE COMPANY

Company Overview

In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. Moody’s offerings are distinguished by our vast proprietary and curated data and validated analytical models, which provide the trusted foundation that enable our customers to navigate an increasingly complex risk landscape. Moody’s solutions enable the transformation of information into decision-grade intelligence, which is deeply interconnected across risk domains. Moody's also offers valuable insights into financial stability and creditworthiness for organizations, debt instruments, and securities, serving a key role in bringing transparency to the global debt markets. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive in a dynamic global environment.

Moody's is helping customers accelerate value creation in an era of exponential risk by embedding our decision-grade intelligence directly into customer workflows

Moody's

Ratings

Research & Insights

Data & Information

Decision Solutions

Banking

Insurance

KYC

Agency of Choice

Premier fixed income research business

Unparalleled, decision-grade intelligence

Serving mission critical workflows across lending, underwriting, and KYC

Enabling Banks, Insurers, Investors, Corporations and Governments to...

What do
we do?

Issue, Originate, Select, Underwrite

Identify, Measure,
Monitor & Manage Risk

Verify, Comply, Plan

& Report

Leveraging AI, decision-grade data, analytics & domain expertise across...

How do we
do this?

Credit

Companies

Properties

Securities

People

Economies

Climate

ESG

Moody’s has two reportable segments: MA and MIS.

Moody's Analytics

Moody's Investors Service

MA provides curated data, intelligence and analytical tools to help business and financial leaders make confident decisions.

For more than 115 years, MIS has been a leading provider of credit ratings, research, and risk analysis helping businesses, governments, and other entities around the globe.

Financial information and operating results of these segments, including revenue, expenses and Adjusted Operating Income, are included in Part II, Item 8. Financial Statements of this annual report and are herein incorporated by reference.

10 MOODY'S 2025 10-K

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Moody's Analytics Overview

MA empowers financial services, corporate and public sector customers to anticipate risks, adapt and thrive in a new era of exponential risk. MA's curated data and analytics transform information into decision-grade intelligence and power its AI-enabled cloud-based workflow tools, helping customers start business relationships, monitor and manage risk, and comply and report based on global laws, rules and regulations.

MA is comprised of: i) a premier fixed income and economic research business (Research & Insights); ii) a data business powered by the world’s largest database on companies and credit (Data & Information); and iii) three cloud-based subscription businesses serving banking, insurance and KYC workflows (Decision Solutions), enabling customers to integrate Moody's proprietary data and analytics through a number of delivery channels.

Moody's Investors Service Overview

MIS is a leading global provider of credit ratings, research, and risk analysis. A rating from Moody’s enables issuers to create timely, go-to-market debt strategies with the ability to capture wider investor focus and provides investors with a comprehensive view of global debt markets through our credit ratings and research. Moody’s trusted insights can help decision-makers navigate the safest path through market turmoil and volatility.

MIS publishes credit ratings and provides assessment services on a wide range of debt obligations, programs and facilities, and the entities that issue such obligations in markets worldwide, including various corporate, financial institution and governmental obligations, and structured finance securities.

MIS also generates revenue from certain non-ratings-related operations, which primarily consist of financial instruments pricing services in the Asia-Pacific region, revenue from Second Party Opinions and Net Zero Assessments and revenue from ICRA's non-ratings operations. The revenue from these operations is included in the MIS Other LOB and is not material to the results of the MIS segment.

Sustainability

Moody's manages its business with the goal of delivering value to all of its stakeholders, including its customers, employees, business partners, local communities, and stockholders. Moody's considers sustainability-related factors throughout our operations, value chain, products, and services. We use our expertise, technology tools, and research and analytical services to help other organizations evaluate sustainability-related risk and make better risk mitigation and planning decisions.

The Company provides updated information on its sustainability strategy and progress via its sustainability website, and discloses information frequently requested by investors via its sustainability-related disclosures website.

The Board oversees sustainability matters via the Audit, Governance & Nominating, and Compensation & Human Resources Committees, as part of its oversight of management and the Company’s overall strategy. The Audit Committee oversees financial, risk and other disclosures made in the Company’s annual and quarterly reports related to sustainability. The Governance & Nominating Committee oversees sustainability matters, including significant issues of corporate social and environmental responsibility, as they pertain to the Company’s business and to long-term value creation for the Company and its stockholders, and makes recommendations to the Board regarding these issues. Finally, the Compensation & Human Resources Committee oversees inclusion of sustainability-related performance goals for determining compensation of certain senior executives. Together, these committee functions support the development of a robust sustainability-related strategy and disclosure framework for the Company. The Board also oversees Moody’s policies for assessing and managing the Company's exposure to risk, including climate-related risks such as business continuity disruption and reputational or credibility concerns stemming from incorporation of climate-related risks into our credit rating methodologies and credit ratings of Moody's Ratings.

HUMAN CAPITAL

Our employees are vital to Moody’s continued success, and we seek to create an environment that attracts, develops and sustains a highly skilled, performance-oriented and engaged workforce. Our approach is oriented around the following pillars:

–providing market-competitive compensation, benefits and wellness programs as part of our Total Rewards program;

–implementing a robust talent management, employee engagement and retention strategy; and

–fostering an inclusive environment where all employees have a sense of belonging and are given the opportunity to perform their best.

Total Rewards

Moody's Total Rewards programs are designed to attract and maintain a high-performing, engaged and motivated global workforce. The Company's compensation packages include market-competitive salaries, performance-based annual bonuses, and equity grants aligned to our long-term performance for certain employees.

The Company's industry leading benefits programs offer comprehensive resources to support physical, mental and financial well-being. We invest in AI powered technologies in order to provide our employees with a world-class experience accessing and managing their benefits. We continuously evaluate our market benchmarks and employee feedback so that our benefits are competitive and support the attraction of the best talent. For example, in recent years we implemented a global paid parental leave policy to give parents time off to care for and bond with a new child and updated our tuition reimbursement program.

MOODY'S

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-04-23 (period ending 2026-03-31).

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This discussion and analysis of financial condition and results of operations should be read in conjunction with the Moody’s Corporation consolidated financial statements and notes thereto included elsewhere in this quarterly report on Form 10–Q.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains Forward-Looking Statements. See “Forward-Looking Statements” commencing on page 63 for a discussion of uncertainties, risks and other factors associated with these statements.

THE COMPANY

In a world shaped by increasingly interconnected risks, Moody's data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. Moody’s offerings are distinguished by our vast proprietary and curated data and validated analytical models, which provide the trusted foundation that enables our customers to navigate an increasingly complex risk landscape. Moody’s solutions enable the transformation of information into decision-grade intelligence, which is deeply interconnected across risk domains. Moody's also offers valuable insights into financial stability and creditworthiness for organizations, debt instruments, and securities, serving a key role in bringing transparency to the global debt markets. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody's gives customers the comprehensive perspective needed to act with confidence and thrive in a dynamic global environment. Moody’s has two reportable segments: MA and MIS.

Moody's Analytics			Moody's Investors Service
MA provides curated data, intelligence and analytical tools to help business and financial leaders make confident decisions.			For more than 115 years, MIS has been a leading provider of credit ratings, research, and risk analysis helping businesses, governments, and other entities around the globe.

MA comprises three interconnected businesses: i) Research & Insights, which provides credit research, economic analysis and scenario modeling used in investment, risk, and regulatory decisions; ii) Data & Information, which is powered by the world's largest database on companies and credit and serves as a critical input to financial analysis and AI model development/risk assessment; and iii) Decision Solutions, a set of cloud-based platforms embedding Moody's data and analytics directly into regulated banking, insurance, and KYC workflows. Together, these businesses benefit from deep customer integration, long-term subscription structures, and data assets that are proprietary in sourcing, breadth, and historical depth.

Critical Accounting Estimates

Moody’s discussion and analysis of its financial condition and results of operations are based on the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires Moody’s to make estimates and judgments that affect reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the dates of the financial statements and revenue and expenses during the reporting periods. These estimates are based on historical experience and on other assumptions that are believed to be reasonable under the circumstances. On an ongoing basis, Moody’s evaluates its estimates, including those related to revenue recognition, contingencies, goodwill and acquired intangible assets, pension and other retirement benefits, investments in non-consolidated affiliates, and income taxes. Actual results may differ from these estimates under different assumptions or conditions. Item 7, MD&A, in the Company’s annual report on Form 10-K for the year ended December 31, 2025, includes descriptions of some of the judgments that Moody’s makes in applying its accounting estimates in these areas. Since the date of the annual report on Form 10-K, there have been no material changes to the Company’s critical accounting estimates disclosures.

Reportable Segments

The Company is organized into two reportable segments as of March 31, 2026: MA and MIS, which are more fully described in the section entitled “The Company” above and in Note 16 to the consolidated financial statements.

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RESULTS OF OPERATIONS

The following footnotes are applicable throughout the discussion of the Company's results of operations:

(1) Refer to the section entitled "Non-GAAP Financial Measures" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

(2) Refer to the section entitled "Key Performance Metrics" of this MD&A for the definition and methodology that the Company utilizes to calculate this metric.

Three months ended March 31, 2026 compared with three months ended March 31, 2025

Executive Summary

The following table provides an executive summary of key operating results for the quarter ended March 31, 2026. Following this executive summary is a more detailed discussion of the Company’s operating results as well as a discussion of the operating results of the Company’s reportable segments.

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	Three Months Ended March 31,
Financial measure:	2026			2025			% Change Favorable (Unfavorable)		Insight and Key Drivers of Change Compared to Prior Year
Moody's total revenue	$	2,079		$	1,924		8	%	— reflects revenue growth in both segments
MA external revenue	$	926		$	859		8	%	— sustained demand for insurance offerings and cloud-based KYC and banking solutions; — continued demand for ratings data feed and credit research product offerings — Organic constant currency recurring revenue(1) and ARR(2) increased 7% and 8%, respectively
MIS external revenue	$	1,153		$	1,065		8	%	— robust investment‑grade issuance activity in CFG driven by several jumbo transactions, including AI‑related financing from hyperscalers; and — strong issuance activity in Project and Infrastructure Finance driven by ongoing infrastructure funding needs and AI and data center‑related issuance — revenue growth was supported by favorable investor demand and tight credit spreads, despite market volatility late in the quarter — Organic constant currency revenue(1) growth was 6%
Total operating and SG&A expenses	$	1,008		$	930		(8	%)	— higher salaries and benefits including unfavorable foreign exchange impacts; and — a reserve recorded for an international non-income tax obligation
Depreciation and amortization	$	122		$	113		(8	%)	— higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions
Restructuring	$	27		$	33		18	%	— relates to the Company's restructuring program, more fully discussed in Note 9 to the consolidated financial statements
Total non-operating (expense) income, net	$	(52)		$	(42)		(24	%)	— interest and penalties related to a reserve for an international non-income tax obligation; — a decrease in interest income due to lower cash balances resulting from higher share repurchase activity; partially offset by — lower interest expense primarily related to the maturity of both debt and related interest rate swaps
Operating margin	44.3		%	44.0		%	30	BPS	— Modest operating margin expansion is due to revenue growth coupled with disciplined cost management, mostly offset by the impact of a reserve for an international non-income tax obligation
Adjusted Operating Margin(1)	53.2		%	51.7		%	150	BPS	— Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management
ETR	24.0		%	22.3		%	170	BPS	— primarily reflects a decrease in Excess Tax Benefits related to stock-based compensation
Diluted EPS	$	3.73		$	3.46		8	%	— increase reflects growth in operating income/Adjusted Operating Income
Adjusted Diluted EPS(1)	$	4.33		$	3.83		13	%

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Moody's Corporation

	Three Months Ended March 31,						% Change Favorable (Unfavorable)
	2026			2025
Revenue:
United States	$	1,180		$	1,065		11	%
Non-U.S.:
EMEA	615			569			8	%
Asia-Pacific	177			167			6	%
Americas	107			123			(13	%)
Total Non-U.S.	899			859			5	%
Total	2,079			1,924			8	%
Expenses:
Operating	531			491			(8	%)
SG&A	477			439			(9	%)
Depreciation and amortization	122			113			(8	%)
Restructuring	27			33			18	%
Charges related to asset abandonment	—			2			100	%
Total	1,157			1,078			(7	%)
Operating income	$	922		$	846		9	%
Adjusted Operating Income(1)	$	1,105		$	994		11	%
Interest expense, net	$	(66)		$	(61)		(8	%)
Other non-operating income, net	14			19			(26	%)
Non-operating (expense) income, net	$	(52)		$	(42)		(24	%)
Net income attributable to Moody's	$	661		$	625		6	%
Diluted weighted average shares outstanding	177.3			180.7			2	%
Diluted EPS attributable to Moody's common shareholders	$	3.73		$	3.46		8	%
Adjusted Diluted EPS(1)	$	4.33		$	3.83		13	%
Operating margin	44.3		%	44.0		%
Adjusted Operating Margin(1)	53.2		%	51.7		%
ETR	24.0		%	22.3		%

The table below shows Moody’s global staffing by geographic area:

		March 31,		Change
		2026	2025	%
MA	U.S.	2,760	2,921	(6	%)
	Non-U.S.	4,981	5,093	(2	%)
	Total	7,741	8,014	(3	%)
MIS	U.S.	1,570	1,572	—	%
	Non-U.S.	4,593	4,196	9	%
	Total	6,163	5,768	7	%
MSS	U.S.	677	711	(5	%)
	Non-U.S.	1,469	1,302	13	%
	Total	2,146	2,013	7	%
Total MCO	U.S.	5,007	5,204	(4	%)
	Non-U.S.	11,043	10,591	4	%
	Total	16,050	15,795	2	%

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GLOBAL REVENUE

2026-----------------------------------------------------------------------------------2025

_______________________________________________________________________________________________________

Global revenue ⇑ $155 million

U.S. Revenue ⇑ $115 million

Non-U.S. Revenue ⇑ $40 million

The 8% increase in global revenue reflects growth of 8% in both MA and MIS. On an organic constant currency basis, revenue(1) grew 6%. Refer to the section entitled “Segment Results” of this MD&A for a more comprehensive discussion of the Company’s segment revenue.

Compensation expenses of $392 million increased $25 million, reflecting:						Non-compensation expenses of $139 million increased $15 million, reflecting:
— growth in salaries and benefits due to:						— increases in costs to support operating growth, including technology infrastructure costs
— unfavorable foreign exchange impacts; — annual salary increases; and — higher headcount, primarily from acquisitions
Changes in foreign currency translation rates unfavorably impacted operating expenses by 2%.

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Compensation expenses of $289 million increased $14 million, primarily reflecting:			Non-compensation expenses of $188 million increased $24 million, primarily reflecting:
— growth in salaries and benefits due to:			— a reserve recorded in the first quarter of 2026 for an international non-income tax obligation
— unfavorable foreign exchange impacts; — annual salary increases; and — higher headcount, primarily from acquisitions
Changes in foreign currency translation rates unfavorably impacted SG&A expenses by 3%.

The increase is primarily driven by amortization of internally developed software, which relates to the development of MA cloud-based solutions.

The amounts reflect charges and adjustments related to the Company's restructuring program, more fully discussed in Note 9 to the consolidated financial statements.

Operating margin 44.3%, ⇑ 30 BPS

Adjusted Operating Margin(1) 53.2%, ⇑ 150 BPS

Modest operating margin expansion is due to revenue growth coupled with disciplined cost management, mostly offset by the impact of a reserve recorded in the first quarter of 2026 relating to an international non-income tax obligation.

Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management.

Interest Expense, net ⇑ $5 million

Other non-operating income ⇓ $5 million

Interest expense increase is primarily due to:

Decrease in income is primarily due to:

— interest related to a reserve for an international non-income tax obligation of $12 million; and

— accrued penalties related to a reserve for an international non-income tax obligation of $7 million

— a decrease in interest income of $12 million, reflecting lower cash balances resulting from higher share repurchase activity coupled with lower interest rates; partially offset by

— lower interest expense on borrowings of $17 million primarily related to the maturity of both debt and related interest rate swaps

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The ETR was higher than the prior year primarily reflecting a decrease in Excess Tax Benefits related to stock-based compensation.

Diluted EPS ⇑ $0.27

Adjusted Diluted EPS(1) ⇑ $0.50

Both diluted EPS and Adjusted Diluted EPS(1) growth primarily reflects the increase in operating income/Adjusted Operating Income.

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Segment Results

Moody’s Analytics

The table below provides a summary of revenue and operating results, followed by further insight and commentary:

	Three Months Ended March 31,						% Change Favorable (Unfavorable)
	2026			2025
Revenue:
Decision Solutions (DS)	$	432		$	405		7	%
Research and Insights (R&I)	255			236			8	%
Data and Information (D&I)	239			218			10	%
Total external revenue	926			859			8	%
Intersegment revenue	3			3			—	%
Total MA revenue	929			862			8	%
Expenses:
Operating and SG&A (external)	610			554			(10	%)
Operating and SG&A (intersegment)	51			49			(4	%)
Total operating and SG&A	661			603			(10	%)
Adjusted Operating Income	$	302		$	259		17	%
Adjusted Operating Margin	32.5		%	30.0		%
Depreciation and amortization	100			94			(6	%)
Restructuring	20			26			23	%
Charges related to asset abandonment	—			2			100	%
Reserve for international non-income tax obligation	34			—			NM

MOODY'S ANALYTICS REVENUE

2026-----------------------------------------------------------------------------------2025

_______________________________________________________________________________________________________

MA: Global revenue ⇑ $67 million

U.S. Revenue ⇑ $24 million

Non-U.S. Revenue ⇑ $43 million

The 8% increase in global MA revenue reflects growth both in the U.S. (6%) and internationally (9%).

–Organic constant currency revenue(1) growth was 6%.

–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 11% and 7%, respectively.

–ARR(2) increased 8%.

The increases are reflective of growth across all LOBs, as discussed in further detail below.

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DECISION SOLUTIONS REVENUE

2026-----------------------------------------------------------------------------------2025

_______________________________________________________________________________________________________

DS: Global revenue ⇑ $27 million

U.S. Revenue ⇑ $8 million

Non-U.S. Revenue ⇑ $19 million

Global DS revenue for the three months ended March 31, 2026 and 2025 was comprised as follows:

Global DS revenue increased 7% compared to the first quarter of 2025 and reflects increases in the U.S. (5%) and internationally (8%). DS recurring revenue grew 13%. Organic constant currency revenue(1)

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Recent insider activity

Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 6 transactions across 2 insiders. Net: -4,875 shares, -$2,206,474.

Date	Insider	Role	Action	Shares	Price	Value
2026-06-01	Fauber Robert	President and CEO	Sell	-1,467 ×2	$453.67	-$665,534
2026-06-01	Steele Richard G	SVP - General Counsel	Sell	-158	$453.67	-$71,680
2026-05-01	Fauber Robert	President and CEO	Sell	-1,467 ×2	$466.39	-$684,194
2026-05-01	Steele Richard G	SVP - General Counsel	Sell	-158	$466.39	-$73,690
2026-04-01	Steele Richard G	SVP - General Counsel	Sell	-158 ×2	$437.77	-$69,168
2026-04-01	Fauber Robert	President and CEO	Sell	-1,467 ×3	$437.77	-$642,209

Source: SEC Form 4 filings.

Next expected filings

~2026-07-24 10-Q expected by 2026-08-08 (in 43 days)
~2026-10-23 10-Q expected by 2026-11-07 (in 134 days)
~2027-02-17 10-K expected by 2027-02-26 (in 251 days)
~2027-04-23 10-Q expected by 2027-05-08 (in 316 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-04-23 10-Q Quarterly Report
2026-04-22 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2026-02-18 10-K Annual Report
2026-02-18 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2026-01-12 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-12-19 8-K Officer/Director Change; Financial Statements and Exhibits
2025-10-23 10-Q Quarterly Report
2025-10-22 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2025-10-17 8-K Bylaws/Articles Amended; Other Events; Financial Statements and Exhibits
2025-08-21 8-K Officer/Director Change
2025-07-24 10-Q Quarterly Report
2025-07-23 8-K Earnings Release; Regulation FD Disclosure; Financial Statements and Exhibits
2025-07-21 8-K Officer/Director Change
2025-07-16 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
2025-04-23 10-Q Quarterly Report

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