MOODYS CORP /DE/
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 23, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 2. Results of Operations
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 June 30, 2026 compared with three months ended June 30, 2025
Executive Summary
The following table provides an executive summary of key operating results for the quarter ended June 30, 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.
| Three Months Ended June 30, | |||||
|---|---|---|---|---|---|
| Financial measure: · 2026 · 2025 · % Change Favorable(Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year | |||||
| Moody's total revenue | $2,185 | $1,898 | 15% | — reflects revenue growth in both segments | |
| MA external revenue | $925 | $888 | 4% | — sustained demand for insurance offerings and cloud-based KYC and banking solutions within Decision Solutions; partially offset by — the impacts of the MA Learning Solutions and MA Regulatory Solutions divestitures— continued demand for ratings data feeds, company data applications and credit research product offerings— Organic constant currency recurring revenue(1) and ARR(2) both increased 9% | |
| MIS external revenue | $1,260 | $1,010 | 25% | — strong CFG issuance activity, driven by: — higher leveraged finance issuance, primarily in the U.S., supported by strong investor demand and tight credit spreads; — investment-grade issuance related to continued AI-related financing by hyperscalers; and— strong Project and Infrastructure Finance issuance activity related to data centers and broader build-out of technology infrastructure | |
| Total operating and SG&A expenses | $981 | $932 | (5%) | — higher incentive compensation which aligns with operational performance relative to targets; and— increases in costs to support operating growth, including technology infrastructure costs | |
| Depreciation and amortization | $126 | $120 | (5%) | — higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions | |
| Restructuring | $32 | $27 | (19%) | — relates to the Company's restructuring program, more fully discussed in Note 9 to the consolidated financial statements | |
| Total non-operating income (expense), net | $125 | $(46) | 372% | — a gain on the divestiture of the MA Regulatory Solutions business as more fully discussed in Note 11 to the consolidated financial statements | |
| Operating margin | 47.9% | 43.1% | 480 | BPS | — Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management |
| Adjusted Operating Margin(1) | 55.3% | 50.9% | 440 | BPS | |
| ETR | 24.9% | 25.0% | (10 | BPS) | — in line with the prior year |
| Diluted EPS | $5.03 | $3.21 | 57% | — increase in Diluted EPS reflects growth in operating income coupled with the gain on the divestiture of the MA Regulatory Solutions business | |
| Adjusted Diluted EPS(1) | $4.68 | $3.56 | 31% | — increase in Adjusted Diluted EPS(1) reflects growth in Adjusted Operating Income(1) | |
Moody's Corporation
| Three Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| United States | $1,218 | $992 | 23% |
| Non-U.S.: | |||
| EMEA | 650 | 613 | 6% |
| Asia-Pacific | 196 | 174 | 13% |
| Americas | 121 | 119 | 2% |
| Total Non-U.S. | 967 | 906 | 7% |
| Total | 2,185 | 1,898 | 15% |
| Expenses: | |||
| Operating | 518 | 489 | (6%) |
| SG&A | 463 | 443 | (5%) |
| Depreciation and amortization | 126 | 120 | (5%) |
| Restructuring | 32 | 27 | (19%) |
| Charges related to asset abandonment | — | 1 | 100% |
| Total | 1,139 | 1,080 | (5%) |
| Operating income | $1,046 | $818 | 28% |
| Adjusted Operating Income(1) | $1,208 | $966 | 25% |
| Interest expense, net | $(58) | $(61) | 5% |
| Other non-operating income, net | 2 | 15 | (87%) |
| Gain on business divestitures | 181 | — | NM |
| Non-operating income (expense), net | $125 | $(46) | 372% |
| Net income attributable to Moody's | $878 | $578 | 52% |
| Diluted weighted average shares outstanding | 174.5 | 180.2 | 3% |
| Diluted EPS attributable to Moody's common shareholders | $5.03 | $3.21 | 57% |
| Adjusted Diluted EPS(1) | $4.68 | $3.56 | 31% |
| Operating margin | 47.9% | 43.1% | |
| Adjusted Operating Margin(1) | 55.3% | 50.9% | |
| ETR | 24.9% | 25.0% | |
The table below shows Moody’s global staffing by geographic area:
| June 30, · Change | ||||
|---|---|---|---|---|
| 2026 · 2025 · % | ||||
| MA | U.S. | 2,706 | 2,934 | (8%) |
| Non-U.S. | 4,573 | 5,045 | (9%) | |
| Total(3) | 7,279 | 7,979 | (9%) | |
| MIS | U.S. | 1,559 | 1,560 | —% |
| Non-U.S. | 4,693 | 4,274 | 10% | |
| Total(4) | 6,252 | 5,834 | 7% | |
| MSS | U.S. | 654 | 694 | (6%) |
| Non-U.S. | 1,442 | 1,406 | 3% | |
| Total | 2,096 | 2,100 | —% | |
| Total MCO | U.S. | 4,919 | 5,188 | (5%) |
| Non-U.S. | 10,708 | 10,725 | —% | |
| Total | 15,627 | 15,913 | (2%) | |
(3) Headcount decrease year over year is primarily due to business divestitures.
(4) Headcount increase year over year is primarily due to business acquisitions.
GLOBAL REVENUE
Three months ended June 30,
| Global revenue ⇑ $287 million | U.S. Revenue ⇑ $226 million | Non-U.S. Revenue ⇑ $61 million |
|---|
The 15% increase in global revenue reflects growth of 25% in MIS and 4% in MA. On an organic constant currency basis, revenue(1) grew 16%. Refer to the section entitled “Segment Results” of this MD&A for a more comprehensive discussion of the Company’s segment revenue.
Second Quarter Operating Expense ⇑ $29 million
| Compensation expenses of $374 million increased $12 million, reflecting: | Non-compensation expenses of $144 million increased $17 million, reflecting: |
|---|---|
| — an increase in incentive compensation aligned with operational performance relative to targets | — increases in costs to support operating growth, including technology infrastructure costs |
Second Quarter SG&A Expense ⇑ $20 million
| Compensation expenses of $289 million increased $17 million, primarily reflecting: | Non-compensation expenses of $174 million increased $3 million, primarily reflecting: |
|---|---|
| — an increase in incentive compensation aligned with operational performance relative to targets; and | — non-compensation expenses were generally in line compared to the prior year |
| — growth in salaries and benefits primarily reflecting annual salary increases | |
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
| Operating margin 47.9%, ⇑ 480 BPS | Adjusted Operating Margin(1) 55.3%, ⇑ 440 BPS |
|---|
Operating margin and Adjusted Operating Margin(1) expansion reflects the 15% increase in revenue, partially offset by growth of 5% in operating and SG&A expenses.
| Interest Expense, net ⇓ $3 million | Other non-operating income ⇓ $13 million |
|---|
| Interest expense decrease is primarily due to: | Decrease in income is primarily due to: |
|---|---|
| — lower interest expense on borrowings of $7 million, reflecting favorable impacts from fixed-to-floating interest rate swaps due to a lower interest rate environment compared with the prior year, as well as the maturity of certain swaps in prior periods; partially offset by | — an increase in FX losses of $11 million |
| — a decrease in interest income of $4 million reflecting lower cash balances and lower interest rates | |
Gain on business divestitures ⇑ $181 million
Primarily reflects the gain on divestiture of the MA Regulatory Solutions business.
ETR ⇓ 10 BPS
The ETR was in line with the prior year.
| Diluted EPS ⇑ $1.82 | Adjusted Diluted EPS(1) ⇑ $1.12 |
|---|
The increase in Diluted EPS reflects growth in operating income coupled with the gain on the divestiture of the MA Regulatory Solutions business.
The increase in Adjusted Diluted EPS(1) reflects growth in Adjusted Operating Income(1).
Segment Results
Moody’s Analytics
| Three Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Decision Solutions (DS) | $423 | $413 | 2% |
| Research and Insights (R&I) | 256 | 249 | 3% |
| Data and Information (D&I) | 246 | 226 | 9% |
| Total external revenue | 925 | 888 | 4% |
| Intersegment revenue | 3 | 3 | —% |
| Total MA revenue | 928 | 891 | 4% |
| Expenses: | |||
| Compensation expense | 357 | 355 | (1%) |
| Non-compensation expense | 207 | 200 | (4%) |
| Total compensation and non-compensation expense | 564 | 555 | (2%) |
| Intersegment expense | 52 | 50 | (4%) |
| Total | 616 | 605 | (2%) |
| Adjusted Operating Income | $312 | $286 | 9% |
| Adjusted Operating Margin | 33.6% | 32.1% | |
| Depreciation and amortization | 102 | 97 | (5%) |
| Restructuring | 27 | 18 | (50%) |
| Charges related to asset abandonment | — | 1 | 100% |
| Reserve for international non-income tax obligation | 2 | — | NM |
| Duplicate Rent | 1 | — | NM |
MOODY'S ANALYTICS REVENUE
Three months ended June 30,
| MA: Global revenue ⇑ $37 million | U.S. Revenue ⇑ $28 million | Non-U.S. Revenue ⇑ $9 million |
|---|
The 4% increase in global MA revenue reflects growth both in the U.S. (7%) and internationally (2%).
–Organic constant currency revenue(1) growth was 8%.
–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 7% and 9%, respectively.
–ARR(2)increased 9%.
The increases are reflective of growth across all LOBs, as discussed in further detail below.
DECISION SOLUTIONS REVENUE
Three months ended June 30,
| DS: Global revenue ⇑ $10 million | U.S. Revenue ⇑ $16 million | Non-U.S. Revenue ⇓ $6 million |
|---|
Global DS revenue for the three months ended June 30, 2026 and 2025 was comprised as follows:
Global DS revenue increased 2% compared to the second quarter of 2025 and reflects increases in the U.S. (10%), partially offset by a decline internationally (2%). DS recurring revenue grew 9%. Organic constant currency revenue(1) and organic constant currency recurring revenue(1)growth for DS was 12% and 14%, respectively, and ARR grew 10%.
The most notable drivers of the growth are as follows:
–Insurance revenue grew 9%
–recurring revenue growth of 11% was primarily attributable to continued demand for subscription-based revenue for catastrophe modeling tools
–ARR(2) grew 9% reflecting the continued demand for subscription-based catastrophe models
–KYC revenue grew 13%
–recurring revenue growth of 12% reflects continued demand and strong customer retention for KYC solutions, including expanded compliance data use cases, coupled with a favorable impact from foreign currency translation
–Constant currency revenue(1) growth and constant currency recurring revenue(1) growth in KYC were 11% and 10%, respectively
–ARR(2) grew 13%, reflecting the aforementioned strong demand for KYC solutions
–Banking revenue declined 14%, primarily reflecting the impact of both the MA Learning Solutions divestiture in the fourth quarter of 2025 and the divestiture of MA Regulatory Solutions in the second quarter of 2026. Organic constant currency revenue(1) growth for Banking was 17%
–recurring revenue growth was 3% within Banking, which was suppressed by the divestiture of the MA Regulatory Solutions business.
–Organic constant currency recurring revenue(1) grew 22%, reflecting:
–the expansion of existing customer relationships to cloud-based subscription banking offerings that enable customers' lending, risk management and finance workflows; and
–an increase resulting from the timing of revenue recognition for installed software subscriptions.
–Transaction revenue declined 88% reflecting the impact of the divestiture of the MA Learning Solutions business and MA's continued strategic shift to cloud-based subscription-based solutions.
–ARR(2) grew 10% reflecting the aforementioned expansion of existing customer relationships to cloud-based subscription banking offerings. The lower rate of ARR growth relative to organic constant currency recurring revenue growth primarily reflects higher revenues resulting from the timing of revenue recognition for installed software subscriptions.
RESEARCH AND INSIGHTS REVENUE
Three months ended June 30,
| R&I: Global revenue ⇑ $7 million | U.S. Revenue ⇑ $2 million | Non-U.S. Revenue ⇑ $5 million |
|---|
Global R&I revenue increased 3% compared to the second quarter of 2025 and reflects growth in both the U.S. (1%) and internationally (5%). Constant currency revenue(1) growth for R&I was 2%. Recurring revenue increased 3%.
The revenue increase was attributable to continued demand for credit research product offerings.
ARR(2) increased 6%.
DATA AND INFORMATION REVENUE
Three months ended June 30,
| D&I: Global revenue ⇑ $20 million | U.S. Revenue ⇑ $10 million | Non-U.S. Revenue ⇑ $10 million |
|---|
Global D&I revenue increased 9% compared to the second quarter of 2025 and reflects growth in both the U.S. (13%) and internationally (7%). Constant currency revenue(1) growth for D&I was 8%.
This growth was primarily driven by continued strong demand for ratings data feeds and company data applications, which also contributed to an 8% increase in ARR(2).
MA: Second Quarter Compensation and Non-Compensation Expense ⇑ $9 million
| Compensation expenses of $357 million increased $2 million primarily reflecting: | Non-compensation expenses of $207 million increased $7 million reflecting: |
|---|---|
| — an increase in incentive compensation aligned with operational performance relative to targets; mostly offset by | — increases in costs to support operating growth, including technology infrastructure costs |
| — a decrease in salaries and benefits primarily attributable to the divestitures of MA Learning Solutions and MA Regulatory Solutions businesses, while the underlying expense was generally in line with the prior year | |
MA: Adjusted Operating Margin 33.6% ⇑ 150 BPS
Adjusted Operating Margin expansion primarily reflects the aforementioned 4% increase in global MA revenue, supported by operational efficiency/disciplined cost management.
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
| Three Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Corporate finance (CFG) | $651 | $512 | 27% |
| Structured finance (SFG) | 151 | 135 | 12% |
| Financial institutions (FIG) | 222 | 191 | 16% |
| Public, project and infrastructure finance (PPIF) | 224 | 162 | 38% |
| Total ratings revenue | 1,248 | 1,000 | 25% |
| MIS Other | 12 | 10 | 20% |
| Total external revenue | 1,260 | 1,010 | 25% |
| Intersegment revenue | 52 | 50 | 4% |
| Total MIS revenue | 1,312 | 1,060 | 24% |
| Expenses: | |||
| Compensation expense | 306 | 280 | (9%) |
| Non-compensation expense | 107 | 97 | (10%) |
| Total compensation and non-compensation expense | 413 | 377 | (10%) |
| Intersegment expense | 3 | 3 | —% |
| Total | 416 | 380 | (9%) |
| Adjusted Operating Income | $896 | $680 | 32% |
| Adjusted Operating Margin | 68.3% | 64.2% | |
| Depreciation and amortization | 24 | 23 | (4%) |
| Restructuring | 5 | 9 | 44% |
| Duplicate Rent | 1 | — | NM |
The following chart presents changes in rated issuance volumes compared to the second 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 June 30,
| MIS: Global revenue ⇑ $250 million | U.S. Revenue ⇑ $198 million | Non-U.S. Revenue ⇑ $52 million |
|---|
The 25% increase in global MIS revenue reflects growth in the U.S. (32%) and internationally (13%).
–Organic constant currency revenue(1) growth was 24%.
The increase is reflective of growth across all ratings LOBs, as discussed in further detail below.
CFG REVENUE
Three months ended June 30,
| CFG: Global revenue ⇑ $139 million | U.S. Revenue ⇑ $119 million | Non-U.S. Revenue ⇑ $20 million |
|---|
Global CFG revenue for the three months ended June 30, 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 27% reflects growth in the U.S. (38%) and internationally (10%).
–Organic constant currency revenue(1) growth for CFG was 26%.
Transaction revenue increased $129 million compared to the same period in the prior year, which primarily reflected:
–an increase in leveraged finance issuance activity, primarily in the U.S., reflecting strong investor demand and tight credit spreads throughout most of the quarter coupled with loan activity to finance M&A; and
–higher investment-grade revenue reflecting strong issuance supported by AI‑related financing from hyperscalers in the technology sector, and continued strong investor demand.
SFG REVENUE
Three months ended June 30,
2026---------------------------------------------------------------------------2025
| SFG: Global revenue ⇑ $16 million | U.S. Revenue ⇑ $13 million | Non-U.S. Revenue ⇑ $3 million |
|---|
Global SFG revenue for the three months ended June 30, 2026 and 2025 was comprised as follows:
The increase in SFG revenue of 12% reflects growth in the U.S. (14%) and internationally (7%).
–Organic constant currency revenue(1) growth for SFG was 10%.
Transaction revenue increased $14 million compared to the second quarter of 2025, mainly attributable to higher asset-backed securities and RMBS activity, supported by strong investor demand and favorable spread conditions.
FIG REVENUE
Three months ended June 30,
| FIG: Global revenue ⇑ $31 million | U.S. Revenue ⇑ $20 million | Non-U.S. Revenue ⇑ $11 million |
|---|
Global FIG revenue for the three months ended June 30, 2026 and 2025 was comprised as follows:
The increase in FIG revenue of 16% reflects growth in the U.S. (20%) and internationally (12%).
Transaction revenue increased $27 million compared to the second quarter of 2025, primarily reflecting increased volumes from issuers in the banking sector supported by favorable spreads and strong investor demand.
PPIF REVENUE
Three months ended June 30,
| PPIF: Global revenue ⇑ $62 million | U.S. Revenue ⇑ $45 million | Non-U.S. Revenue ⇑ $17 million |
|---|
Global PPIF revenue for the three months ended June 30, 2026 and 2025 was comprised as follows:
The increase in PPIF revenue of 38% reflects growth in the U.S. (42%) and internationally (31%).
–Constant currency revenue(1) increase for PPIF was 37%.
Transaction revenue increased $59 million compared to the second quarter of 2025, reflecting strong issuance in U.S. project and infrastructure finance related to data centers and broader build-out of technology infrastructure.
MIS: Second Quarter Compensation and Non-Compensation Expenses ⇑ $36 million
| Compensation expenses of $306 million increased $26 million reflecting: | Non-compensation expenses of $107 million increased $10 million: |
|---|---|
| — an increase in incentive compensation aligned with operational performance relative to targets; and | — an increase in costs to support operating growth |
| — growth in salaries and benefits primarily reflecting annual salary increases | |
MIS: Adjusted Operating Margin 68.3% ⇑ 410 BPS
MIS Adjusted Operating Margin expansion primarily reflects the aforementioned 25% increase in revenue and operating leverage in the business.
Restructuring
Six months ended June 30, 2026 compared with six months ended June 30, 2025
Executive Summary
The following table provides an executive summary of key operating results for the six months ended June 30, 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.
| Six Months Ended June 30, | |||||
|---|---|---|---|---|---|
| Financial measure: · 2026 · 2025 · % Change Favorable (Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year | |||||
| Moody's total revenue | $4,264 | $3,822 | 12% | — reflects revenue growth in both segments | |
| MA external revenue | $1,851 | $1,747 | 6% | — sustained demand for insurance offerings and cloud-based KYC and banking solutions within Decision Solutions; partially offset by — the impacts of the MA Learning Solutions and MA Regulatory Solutions divestitures— continued demand for ratings data feeds, credit research product offerings and company data applications— Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 9% | |
| MIS external revenue | $2,413 | $2,075 | 16% | — strong CFG issuance activity, driven by: — investment-grade issuance related to continued AI-related financing by hyperscalers; and — higher leveraged finance issuance, primarily in the U.S., supported by strong investor demand and tight credit spreads; and— strong Project and Infrastructure Finance issuance activity related to data centers and broader build-out of technology infrastructure | |
| Total operating and SG&A expenses | $1,989 | $1,862 | (7%) | — a reserve recorded for an international non-income tax obligation;— higher incentive compensation which aligns with operational performance relative to targets; — an increase in costs to support operating growth; and— unfavorable foreign exchange impacts | |
| Depreciation and amortization | $248 | $233 | (6%) | — higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions | |
| Restructuring | $59 | $60 | 2% | — relates to the Company's restructuring programs. The Strategic and Operational Efficiency Restructuring Program is more fully discussed in Note 9 to the consolidated financial statements | |
| Total non-operating income (expense), net | $73 | $(88) | 183% | — a gain on the divestiture of the MA Regulatory Solutions business as more fully discussed in Note 11 to the consolidated financial statements | |
| Operating margin | 46.2% | 43.5% | 270 BPS | — Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management | |
| Adjusted Operating Margin(1) | 54.2% | 51.3% | 290 BPS | ||
| ETR | 24.5% | 23.6% | (90 BPS) | — primarily reflects a decrease in Excess Tax Benefits related to stock-based compensation | |
| Diluted EPS | $8.75 | $6.66 | 31% | — increase in Diluted EPS reflects growth in operating income coupled with the gain on the divestiture of the MA Regulatory Solutions business | |
| Adjusted Diluted EPS(1) | $9.00 | $7.38 | 22% | — increase in Adjusted Diluted EPS(1) reflects growth in Adjusted Operating Income(1). | |
Moody’s Corporation
| Six Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| United States | $2,398 | $2,057 | 17% |
| Non-U.S.: | |||
| EMEA | 1,265 | 1,182 | 7% |
| Asia-Pacific | 373 | 341 | 9% |
| Americas | 228 | 242 | (6%) |
| Total Non-U.S. | 1,866 | 1,765 | 6% |
| Total | 4,264 | 3,822 | 12% |
| Expenses: | |||
| Operating | 1,049 | 980 | (7%) |
| SG&A | 940 | 882 | (7%) |
| Depreciation and amortization | 248 | 233 | (6%) |
| Restructuring | 59 | 60 | 2% |
| Charges related to asset abandonment | — | 3 | 100% |
| Total | 2,296 | 2,158 | (6%) |
| Operating income | $1,968 | 1,664 | 18% |
| Adjusted Operating Income (1) | $2,313 | 1,960 | 18% |
| Interest expense, net | $(124) | (122) | (2%) |
| Other non-operating income, net | 16 | 34 | (53%) |
| Gain on business divestitures | $181 | — | NM |
| Non-operating income (expense), net | $73 | (88) | 183% |
| Net income attributable to Moody’s | $1,539 | $1,203 | 28% |
| Diluted weighted average shares outstanding | 175.9 | 180.5 | 3% |
| Diluted EPS attributable to Moody’s common shareholders | $8.75 | $6.66 | 31% |
| Adjusted Diluted EPS (1) | $9.00 | $7.38 | 22% |
| Operating margin | 46.2% | 43.5% | |
| Adjusted Operating Margin (1) | 54.2% | 51.3% | |
| Effective tax rate | 24.5% | 23.6% | |
GLOBAL REVENUE
Six months ended June 30,
| Global revenue ⇑ $442 million | U.S. Revenue ⇑ $341 million | Non-U.S. Revenue ⇑ $101 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 comprehensive discussion of the Company’s segment revenue.
YTD Operating Expense ⇑ $69 million
| Compensation expenses of $767 million increased $37 million, reflecting: | Non-compensation expenses of $282 million increased $32 million, reflecting: |
|---|---|
| — growth in salaries and benefits primarily reflecting: | — increases in costs to support operating growth, including technology infrastructure costs |
| — annual salary increases;— unfavorable foreign exchange impacts; and | |
| — an increase in incentive compensation aligned with operational performance relative to targets | |
YTD SG&A Expense ⇑ $58 million
| Compensation expenses of $578 million increased $31 million, reflecting: | Non-compensation expenses of $362 million increased $27 million, reflecting: |
|---|---|
| — growth in salaries and benefits primarily reflecting: | — a reserve recorded in the first quarter of 2026 for an international non-income tax obligation |
| — annual salary increases; and— unfavorable foreign exchange impacts | |
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
| Operating margin 46.2%, ⇑ 270 BPS | Adjusted Operating Margin(1) 54.2%, ⇑ 290 BPS |
|---|
Operating margin and Adjusted Operating Margin(1) expansion reflects the 12% increase in revenue, partially offset by growth of 7% in operating and SG&A expenses.
| Interest Expense, net ⇑ $2 million | Other non-operating income ⇓ $18 million |
|---|
| The increase in interest expense, net is primarily due to: | Decrease in income is primarily due to: |
|---|---|
| — lower interest income of $16 million reflecting lower cash balances resulting from higher share repurchase activity coupled with lower interest rates; | — an increase in FX losses of $12 million |
| — interest related to a reserve for an international non-income tax obligation of $14 million; partially offset by | |
| — lower interest expense on borrowings of $24 million reflecting favorable impacts from fixed-to-floating interest rate swaps due to a lower interest rate environment compared with the prior year, coupled with the maturity of both debt and interest rate swaps | |
Gain on business divestitures ⇑ $181 million
Primarily reflects the gain on divestiture of the MA Regulatory Solutions business.
ETR ⇑ 90 BPS
The increase primarily reflects lower Excess Tax Benefits related to stock-based compensation.
| Diluted EPS ⇑ $2.09 | Adjusted Diluted EPS(1) ⇑ $1.62 |
|---|
The increase in Diluted EPS reflects growth in operating income coupled with the gain on the divestiture of the MA Regulatory Solutions business.
The increase in Adjusted Diluted EPS(1)reflects growth in Adjusted Operating Income(1).
Segment Results
Moody’s Analytics
| Six Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Decision Solutions (DS) | $855 | $818 | 5% |
| Research and Insights (R&I) | 511 | 485 | 5% |
| Data and Information (D&I) | 485 | 444 | 9% |
| Total external revenue | 1,851 | 1,747 | 6% |
| Intersegment revenue | 6 | 6 | —% |
| Total MA Revenue | 1,857 | 1,753 | 6% |
| Expenses: | |||
| Compensation expense | 731 | 717 | (2%) |
| Non-compensation expense | 409 | 392 | (4%) |
| Total compensation and non-compensation expense | 1,140 | 1,109 | (3%) |
| Intersegment expense | 103 | 99 | (4%) |
| Total | 1,243 | 1,208 | (3%) |
| Adjusted Operating Income | $614 | $545 | 13% |
| Adjusted Operating Margin | 33.1% | 31.1% | |
| Depreciation and amortization | 202 | 191 | (6%) |
| Restructuring | 47 | 44 | (7%) |
| Charges related to asset abandonment | — | 3 | 100% |
| Reserve for international non-income tax obligation | 36 | — | NM |
| Duplicate Rent | 1 | — | NM |
MOODY'S ANALYTICS REVENUE
Six months ended June 30,
| MA: Global revenue ⇑ $104 million | U.S. Revenue ⇑ $52 million | Non-U.S. Revenue ⇑ $52 million |
|---|
The 6% increase in global MA revenue reflects growth both in the U.S. (7%) and internationally (5%).
–Organic constant currency revenue(1) growth was 7%.
–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 9% and 8%, respectively.
–ARR(2) increased 9%.
These increases are reflective of growth across all LOBs, as discussed in further detail below.
DECISION SOLUTIONS REVENUE
Six months ended June 30,
| DS: Global revenue ⇑ $37 million | U.S. Revenue ⇑ $24 million | Non-U.S. Revenue ⇑ $13 million |
|---|
Global DS revenue for the six months ended June 30, 2026 and 2025 was comprised as follows:
Global DS revenue grew 5% compared to the first half of 2025 and reflects increases in both the U.S. (7%) and internationally (3%). Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for DS was 10% and 12%, respectively. ARR(2) growth was 10%.
The most notable drivers of the growth are as follows:
–Insurance revenue grew 10%
–recurring revenue growth of 12% in Insurance was attributable to continued demand resulting in new sales for subscription-based revenue for catastrophe modeling tools
–Organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for Insurance was 9% and 11%, respectively
–ARR(2) grew 9%, reflecting the aforementioned continued demand for subscription-based catastrophe modeling tools
–KYC revenue grew 15%
–recurring revenue growth of 14% in KYC reflects strong demand and customer retention for KYC and compliance solutions reflecting increased customer and supplier risk data usage
–Both organic constant currency revenue(1) and organic constant currency recurring revenue(1) growth for KYC was 11%
–ARR(2) grew 13%, reflecting the aforementioned strong demand for KYC solutions
–Banking revenue declined 10%, primarily reflecting the impact of both the MA Learning Solutions divestiture in the fourth quarter of 2025 and the divestiture of MA Regulatory Solutions in the second quarter of 2026. Organic constant currency revenue(1)growth for Banking was 9%.
–recurring revenue growth of 7% within Banking reflected:
–expansion of existing customer relationships to cloud-based subscription banking offerings that enable customers' lending, risk management and finance workflows; and
–an increase resulting from the timing of revenue recognition for installed software subscriptions;
– the divestiture of the MA Regulatory Solutions business.
–Organic constant currency recurring revenue(1) growth for Banking was 15%
–Transaction revenue declined by 82%, reflecting the impact of the divestiture of the MA Learning Solutions business and MA's continued strategic shift to cloud-based subscription offerings
–ARR(2)grew 10%
RESEARCH AND INSIGHTS REVENUE
Six months ended June 30,
| R&I: Global revenue ⇑ $26 million | U.S. Revenue ⇑ $12 million | Non-U.S. Revenue ⇑ $14 million |
|---|
Global R&I revenue increased 5% compared to the first half of 2025 and reflects growth in both the U.S. (4%) and internationally (6%). Constant currency revenue(1) growth for R&I was 4%.
Recurring revenue growth and constant currency recurring revenue(1) growth were 6% and 5%, respectively.
The revenue increase was attributable to continued strong retention and demand for credit research product offerings, which contributed to ARR(2)growth of 6%.
DATA AND INFORMATION REVENUE
Six months ended June 30,
| D&I: Global revenue ⇑ $41 million | U.S. Revenue ⇑ $16 million | Non-U.S. Revenue ⇑ $25 million |
|---|
Global D&I revenue increased 9% compared to the first half of 2025 and reflects growth in both the U.S. (10%) and internationally (9%).
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.
Organic constant currency revenue(1) growth for D&I was 6%.
ARR(2)grew 8% for D&I.
MA: YTD Compensation and Non-Compensation Expense ⇑ $31 million
| Compensation expenses of $731 million increased $14 million reflecting: | Non-compensation expenses of $409 million increased $17 million reflecting: |
|---|---|
| — growth in salaries and benefits, largely driven by unfavorable changes in foreign exchange rates, partially offset by divestitures | — increases in costs to support operating growth, including technology infrastructure costs |
MA: Adjusted Operating Margin 33.1% ⇑ 200 BPS
Adjusted Operating Margin expansion primarily reflects the aforementioned 6% increase in global MA revenue, supported by operational efficiency/disciplined cost management.
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
Moody’s Investors Service
| Six Months Ended June 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Corporate finance (CFG) | $1,284 | $1,076 | 19% |
| Structured finance (SFG) | 288 | 273 | 5% |
| Financial institutions (FIG) | 416 | 382 | 9% |
| Public, project and infrastructure finance (PPIF) | 400 | 325 | 23% |
| Total ratings revenue | 2,388 | 2,056 | 16% |
| MIS Other | 25 | 19 | 32% |
| Total external revenue | 2,413 | 2,075 | 16% |
| Intersegment royalty | 103 | 99 | 4% |
| Total | 2,516 | 2,174 | 16% |
| Expenses: | |||
| Compensation expense | 613 | 560 | (9%) |
| Non-compensation expense | 198 | 193 | (3%) |
| Total compensation and non-compensation expense | 811 | 753 | (8%) |
| Intersegment expense | 6 | 6 | —% |
| Total | 817 | 759 | (8%) |
| Adjusted Operating Income | $1,699 | $1,415 | 20% |
| Adjusted Operating Margin | 67.5% | 65.1% | |
| Depreciation and amortization | 46 | 42 | (10%) |
| Restructuring | 12 | 16 | 25% |
| Duplicate Rent | 1 | — | NM |
The following chart presents changes in rated issuance volumes compared to the first half of 2025. To the extent that changes in rated issuance volumes had a material impact on MIS's revenue compared to the prior year, those impacts are discussed below.
MOODY'S INVESTORS SERVICE REVENUE
Six months ended June 30,
| MIS: Global revenue ⇑ $338 million | U.S. Revenue ⇑ $289 million | Non-U.S. Revenue ⇑ $49 million |
|---|
The 16% increase in global MIS revenue reflects growth in the U.S. (22%) and internationally (6%).
–Organic constant currency revenue(1) growth was 15%.
The increase is reflective of growth across all ratings LOBs, as discussed in further detail below.
CFG REVENUE
Six months ended June 30,
| CFG: Global revenue ⇑ $208 million | U.S. Revenue ⇑ $200 million | Non-U.S. Revenue ⇑ $8 million |
|---|
Global CFG revenue for the six months ended June 30, 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 19% reflects growth in both the U.S. (28%) and internationally (2%).
–Organic constant currency revenue(1) growth for CFG was 18%.
Transaction revenue increased $186 million compared to the prior year, which primarily reflected:
–strong investment-grade issuance activity supported by AI‑related financing from hyperscalers in the technology sector, and continued strong investor demand; and
–an increase in leveraged finance issuance activity, primarily in the U.S., reflecting strong investor demand and tight credit spreads throughout most of the period coupled with loan activity to finance M&A.
SFG REVENUE
Six months ended June 30,
| SFG: Global revenue ⇑ $15 million | U.S. Revenue ⇑ $7 million | Non-U.S. Revenue ⇑ $8 million |
|---|
Global SFG revenue for the six months ended June 30, 2026 and 2025 was comprised as follows:
The increase in SFG revenue of 5% reflects growth in both the U.S. (4%) and internationally (10%).
–Organic constant currency revenue(1) growth for SFG was 4%.
The increase primarily reflects higher asset-backed securities and RMBS activity, supported by strong investor demand and tight spreads.
FIG REVENUE
Six months ended June 30,
| FIG: Global revenue ⇑ $34 million | U.S. Revenue ⇑ $27 million | Non-U.S. Revenue ⇑ $7 million |
|---|
Global FIG revenue for the six months ended June 30, 2026 and 2025 was comprised as follows:
The increase in FIG revenue of 9% reflects growth both in the U.S. (14%) and internationally (4%).
–Organic constant currency revenue(1) growth for FIG was 7%.
Transaction revenue increased $23 million compared to the same period in the prior year, primarily due to higher banking activity in the U.S., supported by favorable spreads and strong investor demand.
Recurring revenue increased $11 million, primarily reflecting the impact of annual price increases and higher monitored credits.
PPIF REVENUE
Six months ended June 30,
| PPIF: Global revenue ⇑ $75 million | U.S. Revenue ⇑ $53 million | Non-U.S. Revenue ⇑ $22 million |
|---|
Global PPIF revenue for the six months ended June 30, 2026 and 2025 was comprised as follows:
The 23% increase in PPIF revenue reflects growth in both the U.S. (25%) and internationally (19%).
–Constant currency revenue(1) growth for PPIF was 22%.
Transaction revenue increased $67 million compared to the same period in the prior year, reflecting strong issuance in U.S. project and infrastructure finance related to data centers and broader build-out of technology infrastructure.
MIS: YTD Compensation and Non-Compensation Expense ⇑ $58 million
| Compensation expenses of $613 million increased $53 million, reflecting: | Non-compensation expenses of $198 million increased $5 million, reflecting: |
|---|---|
| — growth in salaries and benefits due to: | — an increase in costs to support operating growth |
| — annual salary increases; and— unfavorable foreign exchange impacts; coupled with | |
| — an increase in incentive compensation aligned with operational performance relative to targets | |
Adjusted Operating Margin of 67.5% ⇑ 240 BPS
MIS Adjusted Operating Margin expansion primarily reflects the aforementioned 16% increase in revenue and operating leverage in the business.
Restructuring Charges
The amounts reflect charges and adjustments related to the Company's restructuring programs. The Strategic and Operational Efficiency Restructuring Program is more fully discussed in Note 9 to the consolidated financial statements.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.