Moody's Corporation (MCO)

Moody's reported third-quarter 2026 revenue of $2,023 million, up 1 percent from $2,007 million a year earlier 2. The company also reaffirmed its guidance for full-year 2026 2.

Moody's Analytics (MA), the data and software unit, grew revenue 3 percent to $936 million, and annual recurring revenue (ARR) rose 8 percent to $3,688 million 2. Moody's Investors Service (MIS), the credit ratings arm, saw revenue slip 1 percent to $1,087 million, mainly on lower leveraged finance issuance, meaning fewer loans and bonds from heavily indebted companies 2.

Investment grade revenue rose 18 percent, helped by technology-sector financing, including issuance tied to AI and to hyperscaler investment 2.

Full-year guidance still calls for MIS revenue to rise in the high-single-digit percent range, against a 1 percent decline in the third quarter 2. Diluted earnings per share is guided to $16.00 to $16.50 2.

Moody's describes itself as a global integrated risk assessment firm with two segments, MA and MIS 3. MIS has been a leading provider of credit ratings for more than 115 years 3.

Rating fees paid by debt issuers account for most of MIS revenue, so a large part of it depends on how much debt is issued in the world's capital markets 3.

Moody's added insurance-risk businesses by acquiring Praedicat in the third quarter of 2024 and CAPE Analytics in the first quarter of 2025 3. CAPE Analytics provides AI-powered property risk intelligence 1.

In 2025 it also acquired ICR Chile, a domestic credit rating agency, which widened the reach of its local rating business in Latin America 3.

Revenue in 2025 reached $7,718 million, up 9 percent from $7,088 million in 2024, with MA and MIS each growing 9 percent 3. MIS grew on strong investor demand and tight credit spreads, which supported revenue in all of its ratings lines 3.

Operating margin, the share of revenue left after operating costs, rose to 43.4 percent from 40.6 percent, which the company tied to revenue growth and disciplined cost management 3.

On December 19, 2024, the chief executive approved a restructuring program to realign operations toward high priority growth areas 1. Its scope was expanded in July 2026 1.

The MA Learning Solutions business was sold in the fourth quarter of 2025 3. The MA Regulatory Solutions business followed in the second quarter of 2026, for a pre-tax gain of $179 million 1.

A further $115 million gain came in the third quarter of 2026 when more consideration became realizable, for a cumulative pre-tax gain of $294 million 1.

Moody's Analytics

MA sells data, research and software for managing risk, in three parts: Research and Insights, Data and Information, and Decision Solutions, the cloud subscriptions for banking, insurance and KYC (know-your-customer) checks 3.

In the third quarter of 2026, Decision Solutions revenue was $426 million, Research and Insights $260 million and Data and Information $250 million 2. Insurance brought in $186 million and KYC $122 million 2.

Banking revenue fell 16 percent to $118 million, mainly because of the Learning Solutions and Regulatory Solutions sales, while its organic growth was 19 percent 21.

MA competes with providers of software and analytics in Decision Solutions, of economic data and financial research in Research and Insights, and of commercial and financial data in Data and Information 3. Its adjusted operating margin was 35.3 percent in the quarter, up from 34.3 percent 2.

Moody's Investors Service

MIS publishes credit ratings and research on the debt of corporations, financial institutions and governments, and on structured finance securities, which are bundles of loans sold as bonds 3.

Third-quarter 2026 revenue was $530 million in Corporate Finance, $153 million in Structured Finance, $213 million in Financial Institutions and $179 million in Public, Project and Infrastructure Finance 2.

Transaction revenue, earned on individual debt deals, was $714 million, down 5 percent, while recurring revenue was $373 million, up 8 percent 2. MIS adjusted operating margin was 64.4 percent 2.

MIS competes with other credit rating agencies and with investment banks and brokerage firms that offer credit opinions and research 3.

People and offices

Robert Fauber has been president and chief executive since January 2021 3. Noémie Heuland has been chief financial officer since April 2024, and Michael West has been president of Moody's Investors Service since November 2019 3.

Moody's had 16,076 employees on December 31, 2025, up 2 percent, including about 2,000 at majority-owned MIS affiliates 3.

Keith Demmings, chief executive of Assurant, joined the board effective November 1, 2026 5. Lisa Sawicki joined effective March 16, 2026, and sits on the Audit and Governance & Nominating Committees 6.

Operations ran from 24 U.S. offices and 99 non-U.S. office locations at the end of 2025, headquartered at 7 World Trade Center in New York 3.

Current problems

Moody's and MIS face periodic regulatory reviews and claims, including litigation by governmental and private parties based on ratings that MIS assigned 3.

A new EU regulation on ESG ratings becomes applicable in July 2026, and some MIS products may fall in its scope 3.

The umbrella, in words

The two segments are Moody's Analytics, which provides data, intelligence and analytical tools, and Moody's Investors Service, the ratings business 3.

Exhibit 21 lists the active, majority-owned subsidiaries as of December 31, 2025, among them Moody's Investors Service, Inc., Moody's Analytics, Inc., Cape Analytics, Inc., Praedicat, Inc. and ICRA Limited 4.

ICRA is a publicly traded company in India 3. The 10-K lists only leased offices under properties, and reviews its equity investments in non-consolidated affiliates each quarter 3.

TCI Fund Management Ltd reported beneficial ownership of 8.21 percent of the common stock, and Vanguard Capital Management reported 6.41 percent 78. The 10-K counted 1,277 registered shareholders of record on January 31, 2026 3.

For 2026 the company guides to revenue growth in the high-single-digit percent range, an operating margin of 44% to 45% and diluted earnings per share of $16.00 to $16.50 2. Adjusted diluted earnings per share is guided to $16.50 to $17.00 2.

It also guides to operating cash flow of $3.15 to $3.35 billion and free cash flow of $2.7 to $2.9 billion 2. Share repurchases are guided to up to $3.0 billion, subject to cash, market conditions and M&A opportunities 2.

For MA it guides to revenue growth in the mid-single-digit percent range and an adjusted margin of 34% to 35% 2. For MIS it guides to revenue growth in the high-single-digit percent range and an adjusted margin of approximately 65% 2.

The company expects the restructuring program to save $300 million to $350 million a year once complete 1. It expects the program to be substantially complete by the end of 2027, with cash outlays of $285 million to $330 million paid through 2028 1.

On October 20, 2026, the board declared a quarterly dividend of $1.03 per share, payable on December 11, 2026 to holders of record on November 20, 2026 2.

In the U.K., Parliament has passed legislation authorizing the FCA to regulate ESG ratings, and the FCA has begun consulting on rules 3.