MOODYS CORP /DE/
For the period ended Dec 31, 2025. Filed Feb 18, 2026.
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FY2025 · Filed Feb 18, 2026
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Item 7. Results of Operations
This section of this Form 10-K generally discusses the year ended December 31, 2025 and 2024 financial results and year-to-year comparisons between these years. Discussions related to the year ended December 31, 2024 financial results and year-to-year comparisons between the years ended December 31, 2024 and 2023 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
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.
40 MOODY'S 2025 10-K
Year ended December 31, 2025 compared with year ended December 31, 2024
Executive Summary
The following table provides an executive summary of key operating results for the year ended December 31, 2025. 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.
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
| Financial measure: · 2025 · 2024 · % Change Favorable (Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year | |||||
| Moody's total revenue | $7,718 | $7,088 | 9% | — reflects strong revenue growth in both segments | |
| MA external revenue | $3,599 | $3,295 | 9% | — sustained demand for insurance and KYC offerings; and— continued demand for credit research and ratings data feed product offerings— Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 8% | |
| MIS external revenue | $4,119 | $3,793 | 9% | — strong investor demand and tight credit spreads supported revenue growth in all ratings LOBs | |
| Total operating and SG&A expenses | $3,776 | $3,680 | (3%) | — higher salaries and benefits reflecting an increase in headcount, including from acquisitions, and annual salary increases; and— increases in technology infrastructure costs within the MA segment attributable to operational growth; partially offset by— a decrease in incentive compensation which aligns with financial and operational performance relative to targets | |
| Depreciation and amortization | $480 | $431 | (11%) | — higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions; and— amortization of recently acquired intangible assets | |
| Restructuring | $108 | $59 | (83%) | — relates to the Company's restructuring programs, more fully discussed in Note 9 to the consolidated financial statements | |
| Charges related to asset abandonment | $3 | $43 | 93% | — costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements | |
| Total non-operating (expense) income, net | $(221) | $(176) | (26%) | — a net expense reflecting the release of an indemnification asset and tax-related interest accruals associated with the resolution of tax exposures assumed in a prior-year M&A transaction. These amounts offset the tax benefit described in the ETR section below, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1); partially offset by— a gain on the divestiture of the MA Learning Solutions business as more fully discussed in Note 22 to the consolidated financial statements. | |
| Operating Margin | 43.4% | 40.6% | 280BPS | — Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management | |
| Adjusted Operating Margin(1) | 51.1% | 48.1% | 300BPS | ||
| ETR | 21.3% | 23.7% | 240BPS | — Primarily reflects tax benefits recognized in 2025 pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, as more fully discussed in Note 15 to the consolidated financial statements. These amounts offset the net expense described in the non-operating (expense) income, net section above, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1) | |
| Diluted EPS | $13.67 | $11.26 | 21% | — increase reflects the aforementioned revenue growth and margin expansion | |
| Adjusted Diluted EPS(1) | $14.94 | $12.47 | 20% | ||
MOODY'S 2025 10-K 41
Moody’s Corporation
| Year Ended December 31, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2025 · 2024 | |||
| Revenue: | |||
| United States | $4,171 | $3,836 | 9% |
| Non-U.S.: | |||
| EMEA | 2,376 | 2,174 | 9% |
| Asia-Pacific | 699 | 629 | 11% |
| Americas | 472 | 449 | 5% |
| Total Non-U.S. | 3,547 | 3,252 | 9% |
| Total | 7,718 | 7,088 | 9% |
| Expenses: | |||
| Operating | 1,973 | 1,945 | (1%) |
| SG&A | 1,803 | 1,735 | (4%) |
| Depreciation and amortization | 480 | 431 | (11%) |
| Restructuring | 108 | 59 | (83%) |
| Charges related to asset abandonment | 3 | 43 | 93% |
| Total | 4,367 | 4,213 | (4%) |
| Operating income | 3,351 | 2,875 | 17% |
| Adjusted Operating Income (1) | 3,942 | 3,408 | 16% |
| Interest expense, net | (213) | (237) | 10% |
| Other non-operating income, net | (31) | 61 | (151%) |
| Gain on divestiture of business | 23 | — | NM |
| Non-operating (expense) income, net | (221) | (176) | (26%) |
| Net income attributable to Moody’s | $2,459 | $2,058 | 19% |
| Diluted weighted average shares outstanding | 179.9 | 182.7 | 2% |
| Diluted EPS attributable to Moody’s common shareholders | $13.67 | $11.26 | 21% |
| Adjusted Diluted EPS (1) | $14.94 | $12.47 | 20% |
| Operating margin | 43.4% | 40.6% | |
| Adjusted Operating Margin (1) | 51.1% | 48.1% | |
| ETR | 21.3% | 23.7% | |
GLOBAL REVENUE
42 MOODY'S 2025 10-K
| Global Revenue ⇑ $630 million | U.S. Revenue ⇑ $335 million | Non-U.S. Revenue ⇑ $295 million |
|---|
Growth in global revenue reflected increases in both MA and MIS, both in the U.S. and internationally. Refer to the section entitled “Segment Results” of this MD&A for a more fulsome discussion of the Company’s segment revenue.
Operating Expense ⇑ $28 million
| Compensation expenses of $1,467 million decreased $2 million, with the most notable drivers reflecting: | Non-compensation expenses of $506 million increased $30 million, with the most notable drivers reflecting: |
|---|---|
| — a decrease in incentive compensation, which aligns with actual financial and operational performance relative to targets; mostly offset by | — costs associated with recent acquisitions; and |
| — increases in increases in technology infrastructure costs correlated with operating growth | |
| — growth in salaries and benefits attributable to hiring and salary increases to support continued growth in the business as well as recent acquisitions | |
MOODY'S 2025 10-K 43
SG&A Expense ⇑ $68 million
| Compensation expenses of $1,107 million increased $37 million, reflecting: | Non-compensation expenses of $696 million increased $31 million, with the most notable driver reflecting: |
|---|---|
| — growth in salaries and benefits attributable to hiring and salary increases to support continued business growth, coupled with costs from recent acquisitions; partially offset by | — costs to support business growth, including from recent acquisitions |
| — a decrease in incentive compensation, which aligns with actual financial and operational performance relative to targets | |
Depreciation and amortization
The increase is driven by the amortization of internally developed software, which is primarily related to the development of MA cloud-based solutions as well as the amortization of recently acquired intangible assets.
Restructuring
The amounts reflect charges and adjustments related to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.
Charges related to asset abandonment
Reflects costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements.
| Operating margin 43.4%, up 280 BPS | Adjusted Operating Margin 51.1%, up 300 BPS |
|---|
Operating margin and Adjusted Operating Margin(1) expansion reflects the 9% increase in revenue, partially offset by growth of 3% in operating and SG&A expenses.
44 MOODY'S 2025 10-K
| Interest Expense ⇓ $24 million | Other non-operating income ⇓ $92 million |
|---|
| The decrease in expense is primarily due to: | The most notable driver of the decrease in income is: |
|---|---|
| — lower interest expense on borrowings of $49 million, which is primarily attributable to favorable impacts from fixed-to-floating interest rate swaps reflecting a lower interest rate environment compared to the prior year; and | — the release of an indemnification asset of $79 million associated with the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3), as more fully discussed in Note 15 to the consolidated financial statements. |
| — a $16 million reduction in tax-related interest expense primarily reflecting the lapse in the statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3), as more fully discussed in Note 15 to the consolidated financial statements; partially offset by | |
| — lower interest income of $37 million reflecting lower cash and short-term investment balances and lower interest rates | |
(3) These amounts offset the tax benefit described in the ETR section below, and accordingly, have no impact on diluted or Adjusted Diluted EPS(1)
Gain on divestiture of business ⇑ 23 million
Reflects the gain on divestiture of the MA Learning Solutions business.
ETR ⇓ 240 BPS
Decrease primarily reflects tax benefits recognized in 2025 pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(3) as more fully discussed in Note 15 to the consolidated financial statements. These tax benefits had no impact on Diluted EPS/Adjusted Diluted EPS(1) as they were offset by the net impact of the reversal of indemnification assets and tax-related interest accruals as further described above.
| Diluted EPS ⇑ $2.41 | Adjusted Diluted EPS ⇑ $2.47 |
|---|
Both diluted EPS and Adjusted Diluted EPS(1) growth is mostly attributable to the aforementioned growth in operating income/adjusted operating income(2).
MOODY'S 2025 10-K 45
Segment Results
Moody’s Analytics
The table below provides a summary of revenue and operating results, followed by further insight and commentary:
| Year Ended December 31, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2025 · 2024 | |||
| Revenue: | |||
| Decision Solutions (DS) | $1,692 | $1,516 | 12% |
| Research and Insights (R&I) | 995 | 926 | 7% |
| Data and Information (D&I) | 912 | 853 | 7% |
| Total external revenue | 3,599 | 3,295 | 9% |
| Intersegment revenue | 12 | 13 | (8%) |
| Total MA Revenue | 3,611 | 3,308 | 9% |
| Expenses: | |||
| Operating and SG&A (external): | |||
| Compensation expense | 1,438 | 1,370 | (5%) |
| Non-compensation expense | 779 | 731 | (7%) |
| Total Operating and SG&A (external) | 2,217 | 2,101 | (6%) |
| Operating and SG&A (intersegment) | 198 | 193 | (3%) |
| Total operating and SG&A expense | 2,415 | 2,294 | (5%) |
| Adjusted Operating Income | $1,196 | $1,014 | 18% |
| Adjusted Operating Margin | 33.1% | 30.7% | |
| Depreciation and amortization | 393 | 353 | (11%) |
| Restructuring | 77 | 42 | (83%) |
| Charges related to asset abandonment | 3 | 43 | 93% |
MOODY'S ANALYTICS REVENUE
| MA: Global Revenue ⇑ $304 million | U.S. Revenue ⇑ $158 million | Non-U.S. Revenue ⇑ $146 million |
|---|
The 9% increase in global MA revenue reflects growth both in the U.S. (11%) and internationally (8%).
–Organic constant currency revenue(1) growth was 7%.
–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 11% and 8%, respectively.
–ARR(2) increased 8%.
These increases are reflective of growth across all LOBs, as discussed in further detail below.
46 MOODY'S 2025 10-K
DECISION SOLUTIONS REVENUE
| DS: Global Revenue ⇑ $176 million | U.S. Revenue ⇑ $104 million | Non-U.S. Revenue ⇑ $72 million |
|---|
Global DS revenue for the years ended December 31, 2025 and 2024 was comprised as follows:
Global DS revenue increased 12% driven by growth in both the U.S. (18%) and internationally (8%). DS recurring revenue grew 15%. Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for DS was 8% and 11%, respectively, and ARR(2) grew 10%.
The most notable drivers of the growth in Decision Solutions are as follows:
–Insurance revenue grew 15%
–recurring revenue growth of 16% in Insurance was attributable to:
–continued demand resulting in new sales for subscription-based revenue for catastrophe modeling tools; and
–revenue from Praedicat and CAPE Analytics, which the Company acquired in the third quarter of 2024 and first quarter of 2025, respectively
–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth was 8% and 9%, respectively
–ARR(2) grew 7%, reflecting the aforementioned continued demand for subscription-based catastrophe modeling tools
–KYC revenue grew 19%
–recurring revenue growth of 21% in KYC reflects strong demand and customer retention for KYC and compliance solutions, driven by increased customer and supplier risk data usage
–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for KYC was 17% and 18%, respectively
–ARR(2) grew 15%, reflecting the aforementioned strong demand for KYC solutions, however trailed organic constant currency recurring revenue(1) growth mainly due to certain isolated customer attrition events in 2025
MOODY'S 2025 10-K 47
–Banking revenue grew 3%
–recurring revenue growth of 9% within Banking reflected:
–expansion of existing customer relationships into cloud-hosted subscription-based banking offerings, which enable customers' lending, risk management and finance workflows; and
–revenue from Numerated, which the Company acquired in the fourth quarter of 2024;
–a decline in transaction revenue of 18%, reflecting MA's continued strategic shift to cloud-hosted subscription-based solutions
–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for Banking was 2% and 6%, respectively
–ARR(2) grew 8% reflecting the aforementioned expansion of existing customer relationships into cloud-hosted subscription-based offerings.
RESEARCH AND INSIGHTS REVENUE
| R&I: Global Revenue ⇑ $69 million | U.S. Revenue ⇑ $33 million | Non-U.S. Revenue ⇑ $36 million |
|---|
Global R&I revenue increased 7% compared to 2024 and reflects growth in both the U.S. (6%) and internationally (9%).
The revenue increase was attributable to sales growth for credit research product offerings, which contributed to ARR(2)growth of 8%.
DATA AND INFORMATION REVENUE
| D&I: Global Revenue ⇑ $59 million | U.S. Revenue ⇑ $21 million | Non-U.S. Revenue ⇑ $38 million |
|---|
48 MOODY'S 2025 10-K
Global D&I revenue increased 7% compared to 2024 and reflects growth in both the U.S. (7%) and internationally (7%). Organic constant currency revenue(1) growth for D&I was 5%.
This growth was mainly driven by continued strong demand for ratings data feeds and company data applications, which contributed to ARR(2) growth of 7% for D&I.
MA: Operating and SG&A Expense ⇑ $116 million
| Compensation expenses of $1,438 million increased $68 million, reflecting: | Non-compensation expenses of $779 million increased $48 million, reflecting: | |
|---|---|---|
| — growth in salaries and benefits driven by recent acquisitions and annual salary increases | — increases in technology infrastructure costs correlated with operating growth; and | |
| — costs associated with recent acquisitions |
MA: Adjusted Operating Margin 33.1% ⇑ 240BPS
Adjusted Operating Margin expansion reflects the aforementioned 9% increase in global MA revenue outpacing growth of 6% in operating and SG&A expenses, which was supported by operational efficiency/disciplined cost management and cost savings from the Strategic and Operational Efficiency Restructuring Program.
Depreciation and amortization
The increase in depreciation and amortization expense primarily reflects higher amortization of internally developed software relating to the development of cloud-based solutions as well as the amortization of recently acquired intangible assets.
Restructuring
The restructuring charges relate to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.
Charges related to asset abandonment
Reflects costs related to the Company's decision to outsource the production of certain sustainability content utilized in our product offerings, which are more fully discussed in Note 22 to the consolidated financial statements.
MOODY'S 2025 10-K 49
Moody’s Investors Service
The table below provides a summary of revenue and operating results, followed by further insight and commentary:
| Year Ended December 31, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2025 · 2024 | |||
| Revenue: | |||
| Corporate finance (CFG) | $2,132 | $1,950 | 9% |
| Structured finance (SFG) | 558 | 518 | 8% |
| Financial institutions (FIG) | 759 | 727 | 4% |
| Public, project and infrastructure finance (PPIF) | 635 | 564 | 13% |
| Total ratings revenue | 4,084 | 3,759 | 9% |
| MIS Other | 35 | 34 | 3% |
| Total external revenue | 4,119 | 3,793 | 9% |
| Intersegment royalty | 198 | 193 | 3% |
| Total | 4,317 | 3,986 | 8% |
| Expenses: | |||
| Operating and SG&A (external): | |||
| Compensation expense | 1,136 | 1,169 | 3% |
| Non-compensation expense | 423 | 410 | (3%) |
| Total Operating and SG&A (external) | 1,559 | 1,579 | 1% |
| Operating and SG&A (intersegment) | 12 | 13 | 8% |
| Total operating and SG&A expense | 1,571 | 1,592 | 1% |
| Adjusted Operating Income | $2,746 | $2,394 | 15% |
| Adjusted Operating Margin | 63.6% | 60.1% | |
| Depreciation and amortization | 87 | 78 | (12%) |
| Restructuring | 31 | 17 | (82%) |
The following chart presents changes in rated issuance volumes compared to 2024. To the extent that changes in rated issuance volumes had a material impact to MIS's revenue compared to the prior year, those impacts are discussed below.
50 MOODY'S 2025 10-K
MOODY'S INVESTORS SERVICE REVENUE
| MIS: Global Revenue ⇑ $326 million | U.S. Revenue ⇑ $177 million | Non-U.S. Revenue ⇑ $149 million |
|---|
The increase in global MIS revenue reflects growth across all ratings LOBs.
CFG REVENUE
| CFG: Global Revenue ⇑ $182 million | U.S. Revenue ⇑ $94 million | Non-U.S. Revenue ⇑ $88 million |
|---|
Global CFG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:
- Other includes: recurring monitoring fees of a rated debt obligation and/or entities that issue such obligations as well as fees from programs such as commercial paper, medium term notes, and ICRA corporate finance revenue.
MOODY'S 2025 10-K 51
The increase in CFG revenue of 9% reflects increases in both the U.S (7%) and internationally (14%).
Transaction revenue increased $144 million compared to the prior year, which primarily reflected:
–higher issuance activity for investment-grade bonds, which reflected continued tight credit spreads and investor demand for higher quality credits, and includes the impact of several jumbo transactions in the technology sector; and
–higher issuance activity for high-yield bonds as issuers took advantage of favorable conditions, including tight spreads and lower interest rates, primarily to refinance debt.
Recurring revenue increased $38 million, primarily reflecting the impact of annual price increases and higher monitored credits.
SFG REVENUE
| SFG: Global Revenue ⇑ $40 million | U.S. Revenue ⇑ $28 million | Non-U.S. Revenue ⇑ $12 million |
|---|
Global SFG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:
The increase in SFG revenue of 8% reflects growth in the U.S. (8%) and internationally (8%).
The increase in revenue reflected growth across all asset classes, supported by tight credit spreads and strong investor demand.
52 MOODY'S 2025 10-K
FIG REVENUE
| FIG: Global Revenue ⇑ $32 million | U.S. Revenue ⇓ $2 million | Non-U.S. Revenue ⇑ $34 million |
|---|
Global FIG revenue for the years ended December 31, 2025 and 2024 was comprised as follows:
** Other includes: monitoring, commercial paper, medium term notes, and ICRA revenue.
The increase in FIG revenue of 4% reflects growth internationally (10%), partially offset by a decline in the U.S. (1%).
Revenue increased $32 million compared to the same period in the prior year, primarily due to:
–strong issuance volumes from infrequent issuers in the banking sector;
–lower volumes from infrequent issuers in the insurance sector, compared to strong activity in the prior year.
MOODY'S 2025 10-K 53
PPIF REVENUE
| PPIF: Global Revenue ⇑ $71 million | U.S. Revenue ⇑ $57 million | Non-U.S. Revenue ⇑ $14 million |
|---|
Global PPIF revenue for the years ended December 31, 2025 and 2024 was comprised as follows:
The 13% increase in PPIF revenue reflects increases in both the U.S. (16%) and internationally (7%), reflecting:
–higher issuance in U.S. Public Finance, particularly within the state, regional, and healthcare sectors; and
–higher investment‑grade issuance within U.S. Infrastructure Finance, most notably from the utilities sector, coupled with a favorable issuance mix
54 MOODY'S 2025 10-K
MIS: Operating and SG&A Expense ⇓ $20 million
| Compensation expenses of $1,136 million decreased $33 million, reflecting: | Non-compensation expenses of $423 million increased $13 million, primarily reflecting: |
|---|---|
| — a decrease in incentive compensation aligned with actual financial and operating performance relative to targets; partially offset by: | — an increase in costs to support operating growth |
| — growth in salaries and benefits reflecting higher headcount and annual salary increases | |
MIS: Adjusted Operating Margin of 63.6% ⇑ 350BPS
The MIS Adjusted Operating Margin expansion primarily reflected the aforementioned 9% increase in revenue, supported by the operating leverage of the business, benefits from technology investments and a disciplined approach to expense management.
Restructuring Charges
The restructuring charges relate to the Company's restructuring programs as more fully discussed in Note 9 to the consolidated financial statements.
MOODY'S 2025 10-K 55
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