Moody's Corporation · NYSE:MCO
Moody's — Q2 2026 Earnings Presentation
40 slides from Moody's's earnings presentation, Jul 22, 2026
Slide 1: Second Quarter 2026 Earnings Call
Second Quarter 2026 Earnings Call July 22,,2026
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Second Quarter 2026 - Earnings Call 2
Slide 3: Disclaimer
Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, as
Slide 4: Rob Fauber, President and CEO
Rob Fauber PRESIDENT AND CHIEF EXECUTIVE OFFICER Second Quarter 2026 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways MCO: Deep currents driving exceptional 2Q results across Moody's → Achieved 15% revenue growth; Adjusted Operating Income1 grew 25% → Adjusted Diluted EPS1 increased 31% to $4.68 → Adjusted Operating Margin1 expanded by 440bps to 55.3% MIS: Delivered 34% transaction revenue growth → Ra
Slide 6: Deep currents reinforcing MIS' position as the Agency of Choice
Deep currents reinforcing MIS' position as the Agency of Choice AI-RELATED INFRASTRUCTURE PRIVATE CREDIT DIGITAL ECONOMY TRANSITION FINANCE ~$800B in total capex1 for top 6 +40% increase in total Private Credit #1 Digital Asset Ratings & 500th SPO assigned in 2Q26 hyperscalers projected in 2026 tran
Slide 7: Embedding our decision-grade intelligence into customer workflows
Embedding our decision-grade intelligence into customer workflows to improve their decision outcomes AI MOMENTUM KYC INSURANCE BANKING 100+ ~50% 40B+ 16% MCP and Smart API reduction in false positives modeled risks processed each ARR3 growth across lending connections1 using AI-enabled screening mon
Slide 8: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Second Quarter 2026 - Earnings Call 8
Slide 9: MA: strong execution and cost discipline driving continued margin expansion
MA: strong execution and cost discipline driving continued margin expansion 2Q 2026 TTM 2Q26 ARR2 Adjusted OC$1 OC$1 Operating Revenue Recurring Revenue Recurring Growth Margin Growth Revenue Growth Revenue Growth Growth Banking (14)% 22% (4)% 10% 10% 2Q26 Insurance 9% 11% 13% 10% 9% 33.6% KYC 13% 1
Slide 10: MIS: capitalizing on issuance momentum; expanding operational leverage
MIS: capitalizing on issuance momentum; expanding operational leverage TOTAL 2Q26 REVENUE 2Q26 ISSUANCE3 OC$1 $2,059 YoY YoY Change Change $1,260 $1,543 33% Billions $1,010 25% $224 38% 37% $162 $222 16% 16% 2Q25 2Q26 Millions $191 $151 12% 10% $135 2Q26 ADJUSTED OPERATING MARGIN 27% 26% $651 68.3%
Slide 11: Increasing 2026 expectations for MIS-rated issuance
Increasing 20261 expectations for MIS-rated issuance FY 2026 RATED ISSUANCE GUIDANCE1,2 KEY DRIVERS & ASSUMPTIONS As of April 22, 2026 As of July 22, 2026 → Strong momentum across IG, data center, and FIG issuance in 1H Total MIS Rated Issuance Increase of MSD % → Raising FY issuance guidance to MSD
Slide 12: MIS & MA: maintaining 2026 financial guidance metrics
MIS & MA: maintaining 20261 financial guidance metrics AS OF APRIL 22, 2026 AS OF JULY 22, 2026 MOODY’S INVESTORS SERVICE Issuance2 Increase in the low-single-digit percent range Increase in the mid-single-digit percent range Revenue Increase in the high-single-digit percent range No change Adjusted
Slide 13: MCO: updating select metrics in full year 2026 guidance
MCO: updating select metrics in full year 2026 guidance1 AS OF APRIL 22, 2026 AS OF JULY 22, 2026 MOODY’S CORPORATION Revenue Increase in the high-single-digit percent range No change Operating Expenses Increase in the mid-single-digit percent range No change Adjusted Operating Margin2 52% to 53% No
Slide 14: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER Second Quarter 2026 - Earnings Call 14
Slide 15: Supplemental Information
Supplemental Information Second Quarter 2026 - Earnings Call 15
Slide 16: Incremental information
Incremental information As at July 22, 2026, Moody's guidance1 for full year 2026 assumes foreign exchange rates of As at July 22, 2026, Moody's guidance1 for full year 2026 reflects the impact from $1.33 and $1.14 for GBP/USD and EUR/USD, respectively, for the remainder of the year. the divestiture
Slide 17: 2026: expect default rates to decline and M&A to pickup
2026: expect default rates to decline and M&A to pickup DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1 FIRST TIME MANDATES (FTMs) 750 Baseline Optimistic Moderately Pessimistic Severely Pessimistic ~1,135 to ~735 ~765 850 12.5% ~750 ~700 ~595 ~450 10.0% 2 2019 2020 2021 2022 2
Slide 18: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($B)1,2 → Refinancing needs $913 up from ~$4.9T to $833 ~$5.2T over the Investment Grade $539 $458 $320 next four years Speculative Grade Bonds $363 $151 $46 $97 $155 $254 → U
Slide 19: Overview of recent refunding wall studies
Overview of recent refunding wall studies1,2 INVESTMENT GRADE 4-YEAR REFUNDING WALL STUDIES SPECULATIVE GRADE 4-YEAR REFUNDING WALL STUDIES U.S. Investment Grade EMEA Investment Grade U.S. Spec Grade EMEA Spec Grade $3,000 $2,684 $2,829 $3,000 $2,549 ~5% $2,372 ~5% $2,329 ~7% $2,180 $1,825 ~7% $2,00
Slide 20: MIS: the Agency of Choice today and tomorrow
MIS: the Agency of Choice today and tomorrow Long-term Revenue Growth Algorithm ECONOMIC EXPANSION1 VALUE PROPOSITION DEVELOPING CAPITAL MARKETS → GDP growth drives demand for debt → Proven rating accuracy and deeply → Bank system capacity remains constrained capital to fund business investments exp
Slide 21: Operational efficiency creates capacity to reinvest in strategic growth opportunities
Operational efficiency creates capacity to reinvest in strategic growth opportunities FY 2025 vs. FY 2026F1 Increase in the MSD % ~1% ~0.5% ~1% ~1% range 2.5% to 3.5% ~(1.5%) $4.4B FY 2025 Operating Incentive and Depreciation and Reserve for Restructuring Acquired and FY 2026F Operating Expenses Gro
Slide 22: Investing for growth while returning capital to shareholders
Investing for growth while returning capital to shareholders Global Free Cash Flow (FCF)1 Share Repurchases Dividends FCF to Adjusted Net Income Conversion1 Shareholder Return % of FCF1 Up to ~133% ~95% ~$0.7B ~111% ~96% ~90% ~76% $0.7B $2.7B $0.6B to Up to $3.0B $2.5B $2.6B $2.9B $1.6B $1.3B 2024 2
Slide 23: Disciplined approach to capital allocation
Disciplined approach to capital allocation CAPITAL ALLOCATION PRIORITIES INCREASING DIVIDENDS THROUGH MARKET CYCLES COVID-19 RECESSION INVESTING FOR GROWTH 1 Reinvestment Accelerating organic growth GREAT RECESSION CAGR 2001 RECESSION 17% 2 Acquisitions Advance global integrated risk assessment stra
Slide 24: Teleconference details
Teleconference details Webcast Dial In Replay → Go to ir.moodys.com → U.S. & Canada: → A replay of the → Click on “Events & +1-833-461-5787 webcast will be Presentations” → Non-U.S. & Canada: available → Click on the link for +1-626-884-3620 immediately after the “2Q26 Earnings → Passcode: call on J
Slide 25: Moody's planned attendance at upcoming conferences
Moody’s planned attendance at upcoming conferences September 8 Goldman Sachs Communacopia & Tech Conference Q3 Planned Executive Roadshows London Second Quarter 2026 - Earnings Call 25
Slide 26: Appendix
Appendix Second Quarter 2026 - Earnings Call 26
Slide 27: Glossary of terms and abbreviations
Glossary of terms and abbreviations Term Definition Agentic AI AI systems that coordinate multiple specialized agents to automate complex workflows and deliver end-to-end outcomes AI-Native Applications Applications built with AI at their core, embedding intelligence directly into workflows, analyti
Slide 28: Glossary of terms and abbreviations (Cont'd)
Glossary of terms and abbreviations (Cont'd) Term Definition A structured way of organizing data that maps entities (companies, risks, assets, locations) and the relationships between them into a connected network, introducing a semantic layer on top of Knowledge Graph data LOB Line of business M&A
Slide 29: Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) The Company presents ARR on an organic constant currency basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time. The Company uses ARR to manage
Slide 30: Financial information by segment
Financial information by segment The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Three Months Ended June
Slide 31: Financial information by segment (Cont'd)
Financial information by segment (Cont'd) The table below shows revenue and Adjusted Operating Income by reportable segment. Adjusted Operating Income is a financial metric utilized by the Company’s chief operating decision maker to assess the profitability of each reportable segment. Six Months End
Slide 32: Adjusted Operating Income and Adjusted Operating Margin
Adjusted Operating Income and Adjusted Operating Margin The Company presents Adjusted Operating Income and Adjusted Operating Margin because management deems these metrics to be useful measures to provide additional perspective on Moody's operating performance. Adjusted Operating Income excludes the
Slide 33: Free Cash Flow
Free Cash Flow The Company defines Free Cash Flow as net cash provided by operating activities minus cash paid for capital additions. Management believes that Free Cash Flow is a useful metric in assessing the Company’s cash flows to service debt, pay dividends and to fund acquisitions and share rep
Slide 34: Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because Three Months Ended June 30, Six Months Ended June 30, management deems these metrics to be useful measures to provide additional perspect
Slide 35: Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS because Three Months Ended June 30, Six Months Ended June 30, management deems these metrics to be useful measures to provide additional perspect
Slide 36: Organic constant currency revenue growth
Three Months Ended June 30, Six Months Ended June 30, Organic constant Amounts in millions MCO revenue FX impact 2026 (10) 2025 Change Growth 2026 $2,185 $1,898 $ 287 — (10) 15% (56) 2025 Change Growth $4,264 $3,822 $ 442 — (56) 12% currency revenue Inorganic revenue from acquisitions Divestitures O
Slide 37: Organic constant currency revenue growth
Three Months Ended June 30, Six Months Ended June 30, Organic constant Amounts in millions MA recurring revenue FX impact 2026 (5) 2025 Change Growth 2026 $ 915 $ 852 $ — 63 (5) 7% 2025 Change Growth $1,824 $1,674 $ 150 (30) — (30) 9% currency revenue Inorganic recurring revenue from acquisitions Di
Slide 38: Organic constant currency revenue growth
Three Months Ended June 30, Six Months Ended June 30, Organic constant Amounts in millions MIS revenue 2026 $1,260 2025 $1,010 $ Change Growth 250 25% 2026 2025 $2,413 $2,075 Change $ 338 Growth 16% currency revenue FX impact Inorganic revenue from acquisitions (5) (6) — — (5) (6) (26) (9) — — (26)
Slide 39: 2026 outlook reconciliations
2026 outlook reconciliations The following are reconciliations of the Company's adjusted forward looking measures to their comparable U.S. GAAP measure: Projected for the Year Ended December 31, 2026 Operating margin guidance 44% to 45% Depreciation and amortization Approximately 6% Restructuring Ap
Slide 40: Second Quarter 2026 - Earnings Call
© 2026 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTIT