Moody's Corporation · NYSE:MCO
Moody's — Q3 2026 Earnings Presentation
42 slides from Moody's's earnings presentation, Oct 21, 2026
Slide 1: Third Quarter 2026 Earnings Call
Third Quarter 2026 Earnings Call October 21,,2026
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Third 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 Chief Executive Officer
Rob Fauber PRESIDENT AND CHIEF EXECUTIVE OFFICER Third Quarter 2026 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways MCO: Solid 3Q results against a complex market backdrop → Revenue surpassed $2B for the third consecutive quarter → Adjusted Diluted EPS1 increased 6% to $4.14 → Adjusted Operating Margin1 of 52.6% MIS: Second-highest 3Q revenue on record at $1.1B → Investment grade revenue grew 18% →
Slide 6: MIS: deep currents persist despite market volatility
MIS: deep currents persist despite market volatility AI-RELATED EMERGING DEBT DIGITAL INFRASTRUCTURE PRIVATE CREDIT CAPITAL MARKETS INFRASTRUCTURE ~4x +40% PhilRatings Cross-sector growth in AI-related issuance increase in total Private Credit expanding presence in analytical framework for an vs 3Q2
Slide 7: Refunding wall exceeds $5T for second consecutive year
Refunding wall exceeds $5T for second consecutive year 4-Year Refunding Walls1,2,3 for U.S. and EMEA Issuers ($T) U.S. EMEA CAGR = ~9% $5.2 2027 - 2030 Refunding Needs1,2,3 $5.1 $4.9 $1.5 $1.4 $4.4 $1.3 $4.0 $0.7 $0.6 $2.5 $2.4 $0.9 $0.6 $2.3 $2.2 $0.5 $2.1 $2.6 $0.7 $0.8 $0.8 $0.4 $1.2 2027 2028 20
Slide 8: MA: delivering on our strategic initiatives
MA: delivering on our strategic initiatives STRONG GROWTH ACROSS TRANSFORMING CUSTOMER EXPANDING PARTNERSHIPS & CORE USE CASES WORKFLOWS WITH AI INDUSTRY COLLABORATIONS Insurance Underwriting ARR1 growth in Cat Risk ~12% and Casualty solutions Intelligent Risk Platform Credit & Lending Credit Decisi
Slide 9: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Third Quarter 2026 - Earnings Call 9
Slide 10: MA: strong growth and durable margin expansion
MA: strong growth and durable margin expansion 3Q 2026 TTM 3Q26 ARR2 Adjusted OC$1 OC$1 Operating Revenue Recurring Revenue Recurring Growth Margin Growth Revenue Growth Revenue Growth Growth Banking (16)% 22% (8)% 15% 8% 3Q26 Insurance 9% 11% 11% 10% 10% 35.3% KYC 8% 9% 14% 11% 12% +100bps Decision
Slide 11: MIS: second highest 3Q revenue on record
MIS: second highest 3Q revenue on record Broad-based strength offset by decline in leveraged finance activity TOTAL 3Q26 REVENUE 3Q26 ISSUANCE3 OC$1 YoY YoY $1,098 Change Change $1,775 (2)% $1,737 (1)% $1,087 Billions $161 $179 11% 11% $208 $213 2% 2% 3Q25 3Q26 Millions $146 $153 5% 3% 3Q26 ADJUSTED
Slide 12: Maintaining overall full year issuance guidance
Maintaining overall full year issuance guidance1 FY 2026 RATED ISSUANCE GUIDANCE1,2; CHANGES BY SPECIFIC ASSET CLASS KEY DRIVERS & ASSUMPTIONS As of July 22, 2026 As of October 21, 2026 → Maintaining MSD% guidance for FY issuance Total MIS Rated Issuance Increase of MSD % → Robust YTD issuance suppo
Slide 13: MIS & MA: reaffirming full year 2026 guidance
MIS & MA: reaffirming full year 2026 guidance1 AS OF JULY 22, 2026 AS OF OCTOBER 21, 2026 MOODY’S INVESTORS SERVICE Issuance2 Increase in the mid-single-digit percent range No change Revenue Increase in the high-single-digit percent range No change Adjusted Operating Margin Approximately 65% No chan
Slide 14: MCO: reaffirming full year 2026 guidance
MCO: reaffirming full year 2026 guidance1 AS OF JULY 22, 2026 AS OF OCTOBER 21, 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 change Inter
Slide 15: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER Third Quarter 2026 - Earnings Call 15
Slide 16: Supplemental Information
Supplemental Information Third Quarter 2026 - Earnings Call 16
Slide 17: Incremental information
Incremental information As at October 21, 2026, Moody's guidance1 for full year 2026 assumes foreign exchange As at October 21, 2026, Moody's guidance1 for full year 2026 reflects the impact rates of $1.33 and $1.14 for GBP/USD and EUR/USD, respectively, for the remainder of the from the divestiture
Slide 18: 2026: expect default rates to decline and M&A to pickup
2026: expect default rates to decline and M&A to pickup DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1 FIRST TIME MANDATES (FTMs) Baseline Optimistic Moderately Pessimistic Severely Pessimistic ~1,135 900 to 950 ~750 ~735 ~765 12.5% ~700 ~595 ~450 10.0% 2 2019 2020 2021 2022 2
Slide 19: MIS: 2031 emerges as new peak maturity year
MIS: 2031 emerges as new peak maturity year 5-Year Refunding Walls1,2,3 for U.S. Issuers ($T) Investment Grade Speculative Grade ~4% $3.5 $3.3 $3.4 $3.1 $2.6 $1.9 $2.0 $1.9 ~Flat $2.1 $1.9 $1.5 $1.0 $1.3 $1.4 ~8%1 $1.6 $1.1 $1.3 $1.1 // Jan '18 Sep '22 Sep '23 Sep '24 Sep '25 Sep '26 1. Totals may n
Slide 20: Refunding walls remain strong
Refunding walls remain strong DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($B)1,2 $780 $792 $685 → Refinancing needs Investment Grade $250 $280 $252 down slightly from Speculative Grade Bonds $356 $45 $104 $214 $173 ~$5.2T to ~$5.1T $37 Speculative Grade Bank Loans $2
Slide 21: Overview of recent refunding wall studies
Overview of recent refunding wall studies1,2,3 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 $3,500 $3,500 ~5% $2,829 ~5% $2,958 $3,000 $2,549 ~5% $2,684 $3,000 $2,500 $2,500
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 “3Q26 Earnings → Passcode: call on O
Slide 27: Moody's planned attendance at upcoming conferences
Moody’s planned attendance at upcoming conferences November 17 J.P. Morgan Ultimate Services Investor Conference (USIC) December 8 Goldman Sachs U.S. Financial Services Conference Q4 Rothschild & Co Redburn CEO Conference Third Quarter 2026 - Earnings Call 27
Slide 28: Appendix
Appendix Third Quarter 2026 - Earnings Call 28
Slide 29: 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 30: 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 31: 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 32: 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 Sept
Slide 33: 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. Nine Months En
Slide 34: 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 35: 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 36: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS Three Months Ended September 30, Nine Months Ended September 30, because management deems these metrics to be useful measures to provide addition
Slide 37: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders The Company presents Adjusted Net Income and Adjusted Diluted EPS Three Months Ended September 30, Nine Months Ended September 30, because management deems these metrics to be useful measures to provide addition
Slide 38: Organic constant currency revenue growth
Three Months Ended September 30, Nine Months Ended September 30, Organic constant Amounts in millions MCO revenue FX impact 2026 5 2025 $ 2,023 $ 2,007 $ — Change Growth 16 5 1% 2026 2025 Change Growth $ 6,287 $ 5,829 $ 458 (51) — (51) 8% currency revenue Inorganic revenue from acquisitions Divestit
Slide 39: Organic constant currency revenue growth
Three Months Ended September 30, Nine Months Ended September 30, Organic constant Amounts in millions MA recurring revenue FX impact $ 2026 928 2 $ 2025 875 — Change Growth $ 53 2 6% $ 2026 2,752 (28) $ 2025 2,549 — Change Growth $ 203 (28) 8% currency revenue Inorganic recurring revenue from acquis
Slide 40: Organic constant currency revenue growth
Three Months Ended September 30, Nine Months Ended September 30, Organic constant Amounts in millions MIS revenue 2026 2025 Change Growth $ 1,087 $ 1,098 $ (11) (1)% 2026 2025 Change Growth $ 3,500 $ 3,173 $ 327 10% currency revenue FX impact 3 — 3 (23) — (23) Inorganic revenue from acquisitions (6)
Slide 41: 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 42: Moody's legal notices
© 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