MOODYS CORP /DE/
For the period ended Sep 30, 2026. Filed Oct 21, 2026.
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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.
Sep 30, 2026 · Filed Oct 21, 2026
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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 September 30, 2026 compared with three months ended September 30, 2025
Executive Summary
The following table provides an executive summary of key operating results for the quarter ended September 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 September 30, | |||||
|---|---|---|---|---|---|
| Financial measure: · 2026 · 2025 · % Change Favorable(Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year | |||||
| Moody's total revenue | $2,023 | $2,007 | 1% | — reflects growth in MA partially offset by modestly lower MIS revenue | |
| MA external revenue | $936 | $909 | 3% | — sustained demand for insurance offerings and cloud-based banking and KYC 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) and ARR(2) both increased 8% | |
| MIS external revenue | $1,087 | $1,098 | (1%) | — lower issuance activity in leveraged finance within CFG driven by a challenging prior-year quarter comparative and increased market volatility; partially offset by— increased investment-grade issuance supported by continued AI-related financing, including activity from hyperscalers in the technology sector; and — increased PPIF issuance driven by higher U.S. Public Finance and Sovereign activity, as well as strong Project Finance issuance attributable to data center-related financing needs | |
| Total operating and SG&A expenses | $966 | $945 | (2%) | — increases in costs to support operating growth, including technology infrastructure and AI usage costs; and— higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets; partially offset by— the impact of recent business divestitures | |
| Depreciation and amortization | $124 | $123 | (1%) | — in line with the prior year | |
| Restructuring | $27 | $21 | (29%) | — relates to the Company's restructuring program, more fully discussed in Note 9 to the consolidated financial statements | |
| Total non-operating income (expense), net | $62 | $(50) | 224% | — a gain in 2026 on the divestiture of the MA Regulatory Solutions business as more fully discussed in Note 11 to the consolidated financial statements | |
| Operating margin | 44.8% | 45.7% | (90 | BPS) | — Operating margin and Adjusted Operating Margin(1) contraction reflects modest operating expense growth outpacing overall revenue growth |
| Adjusted Operating Margin(1) | 52.6% | 52.9% | (30 | BPS) | |
| ETR | 24.0% | 25.4% | (140 | BPS) | — primarily reflects tax benefits recognized pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, coupled with non-U.S.-related tax benefits |
| Diluted EPS | $4.24 | $3.60 | 18% | — increase in Diluted EPS primarily reflects the gain on the divestiture of the MA Regulatory Solutions business, coupled with a decrease in the diluted weighted average shares outstanding as a result of share repurchases | |
| Adjusted Diluted EPS(1) | $4.14 | $3.92 | 6% | — increase in Adjusted Diluted EPS(1) primarily reflects a decrease in the diluted weighted average shares outstanding as a result of share repurchases | |
Moody's Corporation
| Three Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| United States | $1,134 | $1,118 | 1% |
| Non-U.S.: | |||
| EMEA | 596 | 594 | —% |
| Asia-Pacific | 178 | 180 | (1%) |
| Americas | 115 | 115 | —% |
| Total Non-U.S. | 889 | 889 | —% |
| Total | 2,023 | 2,007 | 1% |
| Expenses: | |||
| Operating | 524 | 492 | (7%) |
| SG&A | 442 | 453 | 2% |
| Depreciation and amortization | 124 | 123 | (1%) |
| Restructuring | 27 | 21 | (29%) |
| Charges related to asset abandonment | — | 1 | 100% |
| Total | 1,117 | 1,090 | (2%) |
| Operating income | $906 | $917 | (1%) |
| Adjusted Operating Income(1) | $1,064 | $1,062 | —% |
| Interest expense, net | $(54) | $(58) | 7% |
| Other non-operating income, net | 1 | 8 | (88%) |
| Gain on business divestitures | 115 | — | NM |
| Non-operating income (expense), net | $62 | $(50) | 224% |
| Net income attributable to Moody's | $734 | $646 | 14% |
| Diluted weighted average shares outstanding | 173.3 | 179.6 | 4% |
| Diluted EPS attributable to Moody's common shareholders | $4.24 | $3.60 | 18% |
| Adjusted Diluted EPS(1) | $4.14 | $3.92 | 6% |
| Operating margin | 44.8% | 45.7% | |
| Adjusted Operating Margin(1) | 52.6% | 52.9% | |
| ETR | 24.0% | 25.4% | |
The table below shows Moody’s global staffing by geographic area:
| September 30, · Change | ||||
|---|---|---|---|---|
| 2026 · 2025 · % | ||||
| MA | U.S. | 2,688 | 2,853 | (6%) |
| Non-U.S. | 4,626 | 5,106 | (9%) | |
| Total(3) | 7,314 | 7,959 | (8%) | |
| MIS | U.S. | 1,548 | 1,572 | (2%) |
| Non-U.S. | 4,659 | 4,257 | 9% | |
| Total(4) | 6,207 | 5,829 | 6% | |
| MSS | U.S. | 655 | 680 | (4%) |
| Non-U.S. | 1,460 | 1,484 | (2%) | |
| Total | 2,115 | 2,164 | (2%) | |
| Total MCO | U.S. | 4,891 | 5,105 | (4%) |
| Non-U.S. | 10,745 | 10,847 | (1%) | |
| Total | 15,636 | 15,952 | (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 September 30,
| Global revenue ⇑ $16 million | U.S. Revenue ⇑ $16 million | Non-U.S. Revenue was in line with prior year |
|---|
The 1% increase in global revenue reflects growth of 3% in MA, partially offset by a decline of 1% in MIS. On an organic constant currency basis, revenue(1) grew 3%. Refer to the section entitled “Segment Results” of this MD&A for a more comprehensive discussion of the Company’s segment revenue.
Third Quarter Operating Expense ⇑ $32 million
| Compensation expenses of $372 million increased $8 million, reflecting: | Non-compensation expenses of $152 million increased $24 million, reflecting: |
|---|---|
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets | — increases in costs to support operating growth, including technology infrastructure and AI usage costs |
Third Quarter SG&A Expense ⇓ $11 million
| Compensation expenses of $278 million were generally in line with the prior year period | Non-compensation expenses of $164 million decreased $18 million, primarily reflecting: |
|---|---|
| — lower charitable contributions compared to the prior year |
Depreciation and amortization
Depreciation and amortization was generally in line with the prior year.
Restructuring
| Operating margin 44.8%, ⇓ 90 BPS | Adjusted Operating Margin(1) 52.6%, ⇓ 30 BPS |
|---|
Operating margin and Adjusted Operating Margin(1) contraction was driven by operating expense growth outpacing modest overall revenue growth.
| Interest Expense, net ⇓ $4 million | Other non-operating income ⇓ $7 million |
|---|
| Interest expense decrease is primarily due to: | Decrease in income is primarily due to: |
|---|---|
| — lower interest expense on borrowings of $4 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; and | — the release of an indemnification asset of $8 million associated with the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(5) |
| — a $2 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(5); partially offset by | |
| — a decrease in interest income of $5 million reflecting lower cash balances and lower interest rates | |
(5) These amounts offset the tax benefit described in the ETR section below, and accordingly, have no impact to Net Income.
Gain on business divestitures ⇑ $115 million
Primarily reflects the gain on divestiture of the MA Regulatory Solutions business.
ETR ⇓ 140 BPS
The decrease in ETR primarily reflects tax benefits recognized pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, for which the sellers had indemnified Moody's(5), coupled with non-U.S.-related tax benefits. The benefit related to the indemnified tax exposures including the associated reduction to Interest expense, net, was offset by the release of the related indemnification asset within Other non-operating income, net, resulting in no impact to Net Income.
| Diluted EPS ⇑ $0.64 | Adjusted Diluted EPS(1) ⇑ $0.22 |
|---|
The increase in Diluted EPS primarily reflects the gain on the divestiture of the MA Regulatory Solutions business, coupled with a decrease in the diluted weighted average shares outstanding as a result of share repurchases.
The increase in Adjusted Diluted EPS(1)primarily reflects a decrease in the diluted weighted average shares outstanding as a result of share repurchases.
Segment Results
Moody’s Analytics
| Three Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Decision Solutions (DS) | $426 | $424 | —% |
| Research and Insights (R&I) | 260 | 252 | 3% |
| Data and Information (D&I) | 250 | 233 | 7% |
| Total external revenue | 936 | 909 | 3% |
| Intersegment revenue | 3 | 3 | —% |
| Total MA revenue | 939 | 912 | 3% |
| Expenses: | |||
| Compensation expense | 352 | 353 | —% |
| Non-compensation expense | 205 | 196 | (5%) |
| Total compensation and non-compensation expense | 557 | 549 | (1%) |
| Intersegment expense | 51 | 50 | (2%) |
| Total | 608 | 599 | (2%) |
| Adjusted Operating Income | $331 | $313 | 6% |
| Adjusted Operating Margin | 35.3% | 34.3% | |
| Depreciation and amortization | 102 | 101 | (1%) |
| Restructuring | 22 | 15 | (47%) |
| Charges related to asset abandonment | — | 1 | 100% |
| Reserve for international non-income tax obligation | — | — | NM |
| Duplicate Rent | 3 | — | NM |
MOODY'S ANALYTICS REVENUE
Three months ended September 30,
| MA: Global revenue ⇑ $27 million | U.S. Revenue ⇑ $29 million | Non-U.S. Revenue ⇓ $2 million |
|---|
The 3% increase in global MA revenue reflects growth in the U.S. (8%), while international revenue was in line with prior year.
–Organic constant currency revenue(1) growth was 8%.
–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 6% and 9%, respectively.
–ARR(2)increased 8%.
DECISION SOLUTIONS REVENUE
Three months ended September 30,
| DS: Global revenue ⇑ $2 million | U.S. Revenue ⇑ $16 million | Non-U.S. Revenue ⇓ $14 million |
|---|
Global DS revenue for the three months ended September 30, 2026 and 2025 was comprised as follows:
Global DS revenue was in line with the third quarter of 2025 and reflects increases in the U.S. (10%), offset by a decline internationally (5%). DS recurring revenue grew 7%. Organic constant currency revenue(1) and organic constant currency recurring revenue(1)growth for DS was 12% and 13%, respectively, and ARR grew 10%.
The most notable drivers of the growth are as follows:
–Insurance revenue grew 9%
–recurring revenue growth of 10% was primarily attributable to continued demand for subscription-based revenue for catastrophe modeling tools
–ARR(2) grew 10%
–KYC revenue grew 8%
–recurring revenue growth of 9% reflects sustained demand and strong customer retention for KYC solutions
–ARR(2) grew 12%, reflecting the aforementioned strong demand for KYC solutions
–Banking revenue declined 16%, 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 19%
–recurring revenue was in line with the third quarter of 2025, primarily 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;
offset by
– the impact of the MA Regulatory Solutions divestiture in the second quarter of 2026.
–Organic constant currency recurring revenue(1) grew 22%, reflecting the aforementioned growth drivers.
–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 8% 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 the timing of revenue recognition for installed software subscriptions.
RESEARCH AND INSIGHTS REVENUE
Three months ended September 30,
| R&I: Global revenue ⇑ $8 million | U.S. Revenue ⇑ $2 million | Non-U.S. Revenue ⇑ $6 million |
|---|
Global R&I revenue increased 3% compared to the third quarter of 2025 and reflects growth in both the U.S. (1%) and internationally (5%). Recurring revenue increased 4%.
The revenue increase was attributable to continued demand and strong customer retention for credit research product offerings.
ARR(2) increased 6%.
DATA AND INFORMATION REVENUE
Three months ended September 30,
| D&I: Global revenue ⇑ $17 million | U.S. Revenue ⇑ $11 million | Non-U.S. Revenue ⇑ $6 million |
|---|
Global D&I revenue increased 7% compared to the third quarter of 2025 and reflects growth in both the U.S. (13%) and internationally (4%). 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 a 7% increase in ARR(2).
MA: Third Quarter Compensation and Non-Compensation Expense ⇑ $8 million
| Compensation expenses of $352 million decreased $1 million reflecting: | Non-compensation expenses of $205 million increased $9 million reflecting: |
|---|---|
| — 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; offset by | — increases in costs to support operating growth, including technology infrastructure and AI usage costs |
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets | |
MA: Adjusted Operating Margin 35.3% ⇑ 100 BPS
Adjusted Operating Margin expansion primarily reflects the aforementioned 3% increase in global MA revenue, supported by operational efficiency/disciplined cost management.
Depreciation and amortization
Depreciation and amortization was generally in line with the prior year.
Restructuring
Moody’s Investors Service
| Three Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Corporate finance (CFG) | $530 | $576 | (8%) |
| Structured finance (SFG) | 153 | 146 | 5% |
| Financial institutions (FIG) | 213 | 208 | 2% |
| Public, project and infrastructure finance (PPIF) | 179 | 161 | 11% |
| Total ratings revenue | 1,075 | 1,091 | (1%) |
| MIS Other | 12 | 7 | 71% |
| Total external revenue | 1,087 | 1,098 | (1%) |
| Intersegment revenue | 51 | 50 | 2% |
| Total MIS revenue | 1,138 | 1,148 | (1%) |
| Expenses: | |||
| Compensation expense | 299 | 284 | (5%) |
| Non-compensation expense | 103 | 112 | 8% |
| Total compensation and non-compensation expense | 402 | 396 | (2%) |
| Intersegment expense | 3 | 3 | —% |
| Total | 405 | 399 | (2%) |
| Adjusted Operating Income | $733 | $749 | (2%) |
| Adjusted Operating Margin | 64.4% | 65.2% | |
| Depreciation and amortization | 22 | 22 | —% |
| Restructuring | 5 | 6 | 17% |
| Duplicate Rent | 4 | — | NM |
The following chart presents changes in rated issuance volumes compared to the third 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 September 30,
| MIS: Global revenue ⇓ $11 million | U.S. Revenue ⇓ $13 million | Non-U.S. Revenue ⇑ $2 million |
|---|
The 1% decrease in global MIS revenue reflects a decline in the U.S. (2%), partially offset by growth internationally (1%).
The decrease is reflective of lower revenues within CFG, offset by growth across all other ratings LOBs, as discussed in further detail below.
CFG REVENUE
Three months ended September 30,
| CFG: Global revenue ⇓ $46 million | U.S. Revenue ⇓ $27 million | Non-U.S. Revenue ⇓ $19 million |
|---|
Global CFG revenue for the three months ended September 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 decrease in CFG revenue of 8% reflects declines in the U.S. (7%) and internationally (11%).
Transaction revenue decreased $59 million compared to the same period in the prior year, which primarily reflected:
–a decrease in speculative-grade issuance reflecting increased market volatility; and
–lower bank loan issuance, primarily reflecting reduced refinancing activity compared with a strong prior-year;
partially offset by
–an increase in investment grade issuance, supported by continued AI‑related financing, including activity from hyperscalers in the technology sector as well as continued strong investor demand.
SFG REVENUE
Three months ended September 30,
2026---------------------------------------------------------------------------2025
| SFG: Global revenue ⇑ $7 million | U.S. Revenue ⇓ $2 million | Non-U.S. Revenue ⇑ $9 million |
|---|
Global SFG revenue for the three months ended September 30, 2026 and 2025 was comprised as follows:
The increase in SFG revenue of 5% reflects growth internationally (24%), partially offset by a decline in the U.S. (2%).
–Organic constant currency revenue(1) growth for SFG was 3%.
Recurring revenue increased by $5 million, primarily reflecting the impact of annual price increases and higher monitored credits.
Transaction revenue increased $2 million compared to the third quarter of 2025, mainly attributable to:
–higher activity from asset-backed securities, covered bonds and RMBS, supported by strong investor demand and favorable spread conditions;
–a decline in structured credit issuance compared to strong issuance in the prior year.
FIG REVENUE
Three months ended September 30,
| FIG: Global revenue ⇑ $5 million | U.S. Revenue ⇑ $2 million | Non-U.S. Revenue ⇑ $3 million |
|---|
Global FIG revenue for the three months ended September 30, 2026 and 2025 was comprised as follows:
The increase in FIG revenue of 2% reflects growth in the U.S. (2%) and internationally (3%).
Recurring revenue increased by $6 million, primarily reflecting the impact of annual price increases and higher monitored credits.
PPIF REVENUE
Three months ended September 30,
| PPIF: Global revenue ⇑ $18 million | U.S. Revenue ⇑ $13 million | Non-U.S. Revenue ⇑ $5 million |
|---|
Global PPIF revenue for the three months ended September 30, 2026 and 2025 was comprised as follows:
The increase in PPIF revenue of 11% reflects growth in the U.S. (12%) and internationally (9%).
Transaction revenue increased $15 million compared to the third quarter of 2025, which primarily reflected:
–an increase in U.S. Public Finance activity, driven by increased issuance across Housing, Healthcare and Regional sectors, as well as stronger Sovereign issuance; and
–higher U.S. project finance activity primarily driven by data center-related financing.
MIS: Third Quarter Compensation and Non-Compensation Expenses ⇑ $6 million
| Compensation expenses of $299 million increased $15 million reflecting: | Non-compensation expenses of $103 million decreased $9 million reflecting: |
|---|---|
| — growth in salaries and benefits primarily driven by annual salary increases and increased headcount, largely attributable to acquisitions; and | — lower charitable contributions compared to the prior year |
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets | |
MIS: Adjusted Operating Margin 64.4% ⇓ 80 BPS
MIS Adjusted Operating Margin contraction primarily reflects the aforementioned modest decline in revenue coupled with a modest increase in total compensation and non-compensation costs.
Restructuring
Nine months ended September 30, 2026 compared with nine months ended September 30, 2025
Executive Summary
The following table provides an executive summary of key operating results for the nine months ended September 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.
| Nine Months Ended September 30, | |||||
|---|---|---|---|---|---|
| Financial measure: · 2026 · 2025 · % Change Favorable (Unfavorable) · Insight and Key Drivers of Change Compared to Prior Year | |||||
| Moody's total revenue | $6,287 | $5,829 | 8% | — reflects revenue growth in both segments | |
| MA external revenue | $2,787 | $2,656 | 5% | — 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) and ARR(2) both grew 8% | |
| MIS external revenue | $3,500 | $3,173 | 10% | — strong investment‑grade issuance activity in CFG supported by AI‑related financing from hyperscalers in the technology sector; and— strong Project and Infrastructure Finance issuance activity related to data centers and broader build-out of technology infrastructure— Organic constant currency revenue(1) growth was 9% | |
| Total operating and SG&A expenses | $2,955 | $2,807 | (5%) | — an increase in costs to support operating growth, including technology infrastructure and AI usage costs— a reserve recorded for an international non-income tax obligation; and— higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets; partially offset by— the impact of business divestitures | |
| Depreciation and amortization | $372 | $356 | (4%) | — higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions | |
| Restructuring | $86 | $81 | (6%) | — 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 | $135 | $(138) | 198% | — 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 | 45.7% | 44.3% | 140 BPS | — Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth coupled with disciplined cost management | |
| Adjusted Operating Margin(1) | 53.7% | 51.8% | 190 BPS | ||
| ETR | 24.4% | 24.2% | (20 BPS) | — in line with prior year | |
| Diluted EPS | $12.98 | $10.26 | 27% | — increase in Diluted EPS reflects growth in operating income and the gain on the divestiture of the MA Regulatory Solutions business, as well as a decrease in the diluted weighted average shares outstanding as a result of share repurchases | |
| Adjusted Diluted EPS(1) | $13.14 | $11.30 | 16% | — increase in Adjusted Diluted EPS(1) reflects growth in Adjusted Operating Income(1) coupled with a decrease in the diluted weighted average shares outstanding as a result of share repurchases | |
Moody’s Corporation
| Nine Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| United States | $3,532 | $3,175 | 11% |
| Non-U.S.: | |||
| EMEA | 1,861 | 1,776 | 5% |
| Asia-Pacific | 551 | 521 | 6% |
| Americas | 343 | 357 | (4%) |
| Total Non-U.S. | 2,755 | 2,654 | 4% |
| Total | 6,287 | 5,829 | 8% |
| Expenses: | |||
| Operating | 1,573 | 1,472 | (7%) |
| SG&A | 1,382 | 1,335 | (4%) |
| Depreciation and amortization | 372 | 356 | (4%) |
| Restructuring | 86 | 81 | (6%) |
| Charges related to asset abandonment | — | 4 | 100% |
| Total | 3,413 | 3,248 | (5%) |
| Operating income | $2,874 | 2,581 | 11% |
| Adjusted Operating Income (1) | $3,377 | 3,022 | 12% |
| Interest expense, net | $(178) | (180) | 1% |
| Other non-operating income, net | 17 | 42 | (60%) |
| Gain on business divestitures | 296 | — | NM |
| Non-operating income (expense), net | $135 | (138) | 198% |
| Net income attributable to Moody’s | $2,273 | $1,849 | 23% |
| Diluted weighted average shares outstanding | 175.1 | 180.2 | 3% |
| Diluted EPS attributable to Moody’s common shareholders | $12.98 | $10.26 | 27% |
| Adjusted Diluted EPS (1) | $13.14 | $11.30 | 16% |
| Operating margin | 45.7% | 44.3% | |
| Adjusted Operating Margin (1) | 53.7% | 51.8% | |
| Effective tax rate | 24.4% | 24.2% | |
GLOBAL REVENUE
Nine months ended September 30,
| Global revenue ⇑ $458 million | U.S. Revenue ⇑ $357 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 ⇑ $101 million
| Compensation expenses of $1,139 million increased $45 million, reflecting: | Non-compensation expenses of $434 million increased $56 million, reflecting: |
|---|---|
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets; and | — increases in costs to support operating growth, including technology infrastructure and AI usage costs |
| — growth in salaries and benefits primarily reflecting annual salary increases and higher employee benefit costs | |
YTD SG&A Expense ⇑ $47 million
| Compensation expenses of $856 million increased $38 million, reflecting: | Non-compensation expenses of $526 million increased $9 million, reflecting: |
|---|---|
| — growth in salaries and benefits primarily reflecting annual salary increases and higher employee benefit costs; and | — a reserve recorded in the first quarter of 2026 for an international non-income tax obligation; partially offset by |
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets | — lower charitable contributions compared to the prior year; and |
| — lower professional services costs | |
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 45.7%, ⇑ 140 BPS | Adjusted Operating Margin(1) 53.7%, ⇑ 190 BPS |
|---|
Operating margin and Adjusted Operating Margin(1) expansion reflects revenue growth of 8% coupled with disciplined cost management
| Interest Expense, net ⇓ $2 million | Other non-operating income ⇓ $25 million |
|---|
| The slight decrease in interest expense, net is primarily due to: | Decrease in income is primarily due to: | |
|---|---|---|
| — lower interest expense on borrowings of $28 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; mostly offset by | — an increase in FX losses of $7 million | |
| — the release of an indemnification asset of $8 million associated with the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction(6); and | ||
| — lower interest income of $21 million reflecting lower cash balances resulting from higher share repurchase activity coupled with lower interest rates | — accrued penalties of $3 million related to a reserve for an international non-income tax obligation |
(6) The $8 million release of the indemnification asset and a $2 million reduction in tax-related interest expense (included within Interest Expense, net), is offset by a $6 million tax benefit recognized pursuant to the lapse of a statute of limitations related to tax exposures assumed in a prior-year M&A transaction, for which the sellers had indemnified Moody's, and accordingly, has no impact to Net Income.
Gain on business divestitures ⇑ $296 million
Primarily reflects the gain on divestiture of the MA Regulatory Solutions business.
ETR ⇑ 20 BPS
The ETR was in line with the prior year.
| Diluted EPS ⇑ $2.72 | Adjusted Diluted EPS(1) ⇑ $1.84 |
|---|
The increase in Diluted EPS reflects:
–growth in operating income;
–the gain on the divestiture of the MA Regulatory Solutions business; and
–a decrease in the diluted weighted average shares outstanding as a result of share repurchases.
The increase in Adjusted Diluted EPS(1)reflects growth in Adjusted Operating Income(1)coupled with a decrease in the diluted weighted average shares outstanding as a result of share repurchases.
Segment Results
Moody’s Analytics
| Nine Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Decision Solutions (DS) | $1,281 | $1,242 | 3% |
| Research and Insights (R&I) | 771 | 737 | 5% |
| Data and Information (D&I) | 735 | 677 | 9% |
| Total external revenue | 2,787 | 2,656 | 5% |
| Intersegment revenue | 9 | 9 | —% |
| Total MA Revenue | 2,796 | 2,665 | 5% |
| Expenses: | |||
| Compensation expense | 1,083 | 1,070 | (1%) |
| Non-compensation expense | 614 | 588 | (4%) |
| Total compensation and non-compensation expense | 1,697 | 1,658 | (2%) |
| Intersegment expense | 154 | 149 | (3%) |
| Total | 1,851 | 1,807 | (2%) |
| Adjusted Operating Income | $945 | $858 | 10% |
| Adjusted Operating Margin | 33.8% | 32.2% | |
| Depreciation and amortization | 304 | 292 | (4%) |
| Restructuring | 69 | 59 | (17%) |
| Charges related to asset abandonment | — | 4 | 100% |
| Reserve for international non-income tax obligation | 36 | — | NM |
| Duplicate Rent | 4 | — | NM |
MOODY'S ANALYTICS REVENUE
Nine months ended September 30,
| MA: Global revenue ⇑ $131 million | U.S. Revenue ⇑ $81 million | Non-U.S. Revenue ⇑ $50 million |
|---|
The 5% increase in global MA revenue reflects growth both in the U.S. (7%) and internationally (3%).
–Organic constant currency revenue(1) growth was 8%.
–Recurring revenue growth and ARR(2) both increased 8%.
These increases are reflective of growth across all LOBs, as discussed in further detail below.
DECISION SOLUTIONS REVENUE
Nine months ended September 30,
| DS: Global revenue ⇑ $39 million | U.S. Revenue ⇑ $40 million | Non-U.S. Revenue ⇓ $1 million |
|---|
Global DS revenue for the nine months ended September 30, 2026 and 2025 was comprised as follows:
Global DS revenue grew 3% compared to the first nine months of 2025 and reflects an increase in the U.S. (8%), while international revenue was in line with the prior period. 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 11% in Insurance was attributable to continued demand resulting in new sales for subscription-based catastrophe modeling solutions
–Organic constant currency revenue(1) growth for Insurance was 9%
–ARR(2) grew 10%, reflecting the aforementioned continued demand for subscription-based catastrophe modeling tools
–KYC revenue grew 12%
–recurring revenue growth of 13% in KYC reflects strong demand 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 were 10%
–ARR(2) grew 12%, reflecting the aforementioned strong demand for KYC solutions
–Banking revenue declined 12%, 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 12%.
–recurring revenue growth of 4% 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 17% due to the aforementioned increase in cloud-based subscription banking offerings and timing of revenue recognition for installed software subscriptions
–Transaction revenue declined by 84%, 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 8% 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 the timing of revenue recognition for installed software subscriptions.
RESEARCH AND INSIGHTS REVENUE
Nine months ended September 30,
| R&I: Global revenue ⇑ $34 million | U.S. Revenue ⇑ $14 million | Non-U.S. Revenue ⇑ $20 million |
|---|
Global R&I revenue increased 5% compared to the first nine months of 2025 and reflects growth in both the U.S. (3%) and internationally (6%). Constant currency revenue(1) growth for R&I was 4%.
Recurring revenue growth and constant currency recurring revenue(1) growth were 5% and 4%, 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
Nine months ended September 30,
| D&I: Global revenue ⇑ $58 million | U.S. Revenue ⇑ $27 million | Non-U.S. Revenue ⇑ $31 million |
|---|
Global D&I revenue increased 9% compared to the first nine months of 2025 and reflects growth in both the U.S. (11%) and internationally (7%).
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 7%.
ARR(2)grew 7% for D&I.
MA: YTD Compensation and Non-Compensation Expense ⇑ $39 million
| Compensation expenses of $1,083 million increased $13 million reflecting: | Non-compensation expenses of $614 million increased $26 million reflecting: |
|---|---|
| — growth in salaries and benefits, largely driven by unfavorable changes in foreign exchange rates, partially offset by the impact of business divestitures | — increases in costs to support operating growth, including technology infrastructure and AI usage costs |
MA: Adjusted Operating Margin 33.8% ⇑ 160 BPS
Adjusted Operating Margin expansion primarily reflects the aforementioned 5% 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
| Nine Months Ended September 30, · % Change Favorable(Unfavorable) | |||
|---|---|---|---|
| 2026 · 2025 | |||
| Revenue: | |||
| Corporate finance (CFG) | $1,814 | $1,652 | 10% |
| Structured finance (SFG) | 441 | 419 | 5% |
| Financial institutions (FIG) | 629 | 590 | 7% |
| Public, project and infrastructure finance (PPIF) | 579 | 486 | 19% |
| Total ratings revenue | 3,463 | 3,147 | 10% |
| MIS Other | 37 | 26 | 42% |
| Total external revenue | 3,500 | 3,173 | 10% |
| Intersegment royalty | 154 | 149 | 3% |
| Total | 3,654 | 3,322 | 10% |
| Expenses: | |||
| Compensation expense | 912 | 844 | (8%) |
| Non-compensation expense | 301 | 305 | 1% |
| Total compensation and non-compensation expense | 1,213 | 1,149 | (6%) |
| Intersegment expense | 9 | 9 | —% |
| Total | 1,222 | 1,158 | (6%) |
| Adjusted Operating Income | $2,432 | $2,164 | 12% |
| Adjusted Operating Margin | 66.6% | 65.1% | |
| Depreciation and amortization | 68 | 64 | (6%) |
| Restructuring | 17 | 22 | 23% |
| Duplicate Rent | 5 | — | NM |
The following chart presents changes in rated issuance volumes compared to the first nine months 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
Nine months ended September 30,
| MIS: Global revenue ⇑ $327 million | U.S. Revenue ⇑ $276 million | Non-U.S. Revenue ⇑ $51 million |
|---|
The 10% increase in global MIS revenue reflects growth in the U.S. (14%) and internationally (4%).
–Organic constant currency revenue(1) growth was 9%.
The increase is reflective of growth across all ratings LOBs, as discussed in further detail below.
CFG REVENUE
Nine months ended September 30,
| CFG: Global revenue ⇑ $162 million | U.S. Revenue ⇑ $173 million | Non-U.S. Revenue ⇓ $11 million |
|---|
Global CFG revenue for the nine months ended September 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 10% reflects growth in the U.S. (16%), partially offset by a decline in revenue internationally (2%).
–Organic constant currency revenue(1) growth for CFG was 9%.
Transaction revenue increased $127 million compared to the prior year, which primarily reflected strong investment-grade issuance activity supported by AI‑related financing, including activity from hyperscalers in the technology sector and continued strong investor demand.
Recurring revenue increased $35 million, primarily reflecting the impact of annual price increases and higher monitored credits.
SFG REVENUE
Nine months ended September 30,
| SFG: Global revenue ⇑ $22 million | U.S. Revenue ⇑ $5 million | Non-U.S. Revenue ⇑ $17 million |
|---|
Global SFG revenue for the nine months ended September 30, 2026 and 2025 was comprised as follows:
The increase in SFG revenue of 5% reflects growth in both the U.S. (2%) and internationally (14%).
–Organic constant currency revenue(1) growth for SFG was 3%.
Transaction revenue increased $12 million compared to the same period in the prior year, primarily reflecting:
–higher asset-backed securities, RMBS and covered bonds activity, supported by strong investor demand;
–a decline in structured credit issuance compared to strong issuance in the prior-year.
Recurring revenue increased $10 million, primarily reflecting the impact of annual price increases and higher monitored credits.
FIG REVENUE
Nine months ended September 30,
| FIG: Global revenue ⇑ $39 million | U.S. Revenue ⇑ $29 million | Non-U.S. Revenue ⇑ $10 million |
|---|
Global FIG revenue for the nine months ended September 30, 2026 and 2025 was comprised as follows:
The increase in FIG revenue of 7% reflects growth both in the U.S. (10%) and internationally (4%).
–Organic constant currency revenue(1) growth for FIG was 6%.
Transaction revenue increased $22 million compared to the same period in the prior year, reflecting increased volumes from issuers in the banking sector supported by favorable spreads and strong investor demand.
Recurring revenue increased $17 million, primarily reflecting the impact of annual price increases and higher monitored credits.
PPIF REVENUE
Nine months ended September 30,
| PPIF: Global revenue ⇑ $93 million | U.S. Revenue ⇑ $66 million | Non-U.S. Revenue ⇑ $27 million |
|---|
Global PPIF revenue for the nine months ended September 30, 2026 and 2025 was comprised as follows:
The 19% increase in PPIF revenue reflects growth in both the U.S. (21%) and internationally (16%).
–Constant currency revenue(1) growth for PPIF was 18%.
Transaction revenue increased $82 million compared to the same period in the prior year, primarily 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 ⇑ $64 million
| Compensation expenses of $912 million increased $68 million, reflecting: | Non-compensation expenses of $301 million were generally in line with the prior year |
|---|---|
| — growth in salaries and benefits primarily driven by annual salary increases and increased headcount, largely attributable to acquisitions; and | |
| — higher incentive compensation which aligns with actual/projected financial and operational performance relative to targets | |
Adjusted Operating Margin of 66.6% ⇑ 150 BPS
MIS Adjusted Operating Margin expansion primarily reflects the aforementioned 10% 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.