MOODYS CORP /DE/

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.

Moody's Corporation

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

GLOBAL REVENUE

Three months ended March 31,

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.

First Quarter Operating Expense ⇑ $40 million

First Quarter SG&A Expense ⇑ $38 million

Depreciation and amortization

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

Restructuring

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.

ETR ⇑ 170 BPS

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

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

Segment Results

Moody’s Analytics

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

MOODY'S ANALYTICS REVENUE

Three months ended March 31,

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.

DECISION SOLUTIONS REVENUE

Three months ended March 31,

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) and organic constant currency recurring revenue(1)growth for DS was 7% and 10%, respectively, and ARR grew 10%.

The most notable drivers of the growth are as follows:

–Insurance revenue grew 11%

–recurring revenue growth of 13% in Insurance was primarily attributable to continued demand for subscription-based revenue for catastrophe modeling tools

–Organic constant currency revenue(1) growth and organic constant currency recurring revenue(1) growth for Insurance was 9% and 10%, respectively

–ARR(2) grew 7% reflecting the continued demand for subscription-based catastrophe models

–KYC revenue grew 17%

–recurring revenue growth of 17% reflects strong demand and customer retention for KYC solutions, primarily driven by expanded compliance data use cases, coupled with a favorable impact from foreign currency translation

–Both constant currency revenue(1) growth and constant currency recurring revenue(1) growth in KYC were 11%

–ARR(2) grew 13%, reflecting the aforementioned strong demand for KYC solutions

–Banking revenue declined 6%, primarily reflecting the impact of the MA Learning Solutions divestiture in the fourth quarter of 2025

–recurring revenue growth of 10% within Banking reflected:

–expansion of existing customer relationships to cloud hosted subscription-based banking offerings, which enable customers' lending, risk management and finance workflows

–a decline in revenue from installed software subscriptions

–Transaction revenue declined 77% reflecting the impact of the divestiture of the MA Learning Solutions business and MA's continued strategic shift to cloud hosted subscription-based solutions

–Organic constant currency revenue(1) growth and organic constant currency recurring revenue(1) growth for Banking was 3% and 9%, respectively

–ARR(2) grew 10% reflecting the aforementioned expansion of existing customer relationships to subscription-based banking offerings

RESEARCH AND INSIGHTS REVENUE

Three months ended March 31,

Global R&I revenue increased 8% compared to the first quarter of 2025 and reflects growth in both the U.S. (8%) and internationally (8%).

The revenue increase was attributable to continued strong retention and demand for credit research product offerings, which contributed to R&I ARR(2) growth of 7%.

DATA AND INFORMATION REVENUE

Three months ended March 31,

Global D&I revenue increased 10% compared to the first quarter of 2025 and reflects growth in both the U.S. (8%) and internationally (11%). 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, coupled with a favorable impact from foreign currency translation.

ARR(2)grew 6% reflecting the aforementioned continued strong demand for ratings data feeds and company data applications.

MA: First Quarter Operating and SG&A Expense ⇑ $56 million

MA: Adjusted Operating Margin 32.5% ⇑ 250 BPS

Adjusted Operating Margin expansion primarily reflects the aforementioned 8% increase in global MA revenue, 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 reflects higher amortization of internally developed software relating to the development of cloud-based solutions.

Restructuring

Moody’s Investors Service

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

The following chart presents changes in rated issuance volumes compared to the first quarter of 2025. 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.

MOODY'S INVESTORS SERVICE REVENUE

Three months ended March 31,

The 8% increase in global MIS revenue reflects growth in the U.S (13%), partially offset by a decline internationally (1%).

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

The increase is reflective of growth across all ratings LOBs, excluding SFG, as discussed in further detail below.

CFG REVENUE

Three months ended March 31,

Global CFG revenue for the three months ended March 31, 2026 and 2025 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.

The increase in CFG revenue of 12% reflects growth in the U.S. (21%), partially offset by a decline internationally (7%).

–Constant currency revenue(1) growth for CFG was 10%.

Transaction revenue increased $57 million compared to the same period in the prior year, which primarily reflected:

–higher investment-grade revenue reflecting robust first quarter issuance supported by several jumbo transactions, including AI‑related financing from hyperscalers in the technology sector, and continued strong investor demand for high‑quality credits;

–an increase in speculative-grade bond issuance activity, primarily in the U.S., reflecting strong investor demand supported by elevated yields and continued tight credit spreads for a majority of the first quarter;

–a decrease in bank loan revenue due to lower issuance activity when compared to a strong prior year comparative.

SFG REVENUE

Three months ended March 31,

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

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

The decrease in SFG revenue of 1% reflects a decrease in the U.S. (6%), partially offset by growth internationally (13%).

–Constant currency revenue(1) decline for SFG was 3%.

Transaction revenue decreased $4 million compared to the first quarter of 2025, mainly attributable to:

–a decline in CMBS activity coupled with lower CLO refinancing activity;

–strong ABS issuance, supported by constructive spread conditions and strong investor demand.

FIG REVENUE

Three months ended March 31,

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

The increase in FIG revenue of 2% reflects growth in the U.S. (7%) partially offset by a decline internationally (4%). Constant currency revenue(1) decline for FIG was 1%.

–Recurring revenue increased by $7 million, primarily reflecting the impact of annual price increases and higher monitored credits;

–a decrease in Transaction Revenue of $4 million compared to the first quarter of 2025, primarily reflecting lower volumes from infrequent issuers, particularly in the insurance sector.

PPIF REVENUE

Three months ended March 31,

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

The increase in PPIF revenue of 8% reflects growth in the U.S. (8%) and internationally (8%).

–Constant currency revenue(1) increase for PPIF was 6%.

Transaction revenue increased $8 million compared to the first quarter of 2025, reflecting strong investment-grade issuance in U.S. infrastructure finance driven by ongoing infrastructure funding needs and AI and data center‑related issuance.

Recurring revenue increased $5 million, driven by the impact of annual price increases and higher monitored credits.

MIS: First Quarter Operating and SG&A Expense ⇑ $22 million

MIS: Adjusted Operating Margin 66.7% ⇑ 70 BPS

MIS Adjusted Operating Margin expansion primarily reflects the aforementioned 8% increase in revenue, coupled with operating leverage of the business and disciplined cost management.

Restructuring