Slide 1: First Quarter 2026 Earnings Call
First Quarter 2026 Earnings Call April 22,,2026
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS First 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 First Quarter 2026 - Earnings Call 4
Slide 5: Key Takeaways
Key Takeaways Moody’s delivered strong performance across the board → Revenue up 8% across both businesses → Adjusted Operating Margin1 expanded 150bps to 53.2% → Adjusted Diluted EPS1 increased 13% to $4.33 MIS achieved a record $1.2B quarterly revenue, adjusted operating margin of 66.7% → Rated is
Slide 6: Capitalizing on demand from deep currents to deliver strong results
Capitalizing on demand from deep currents to deliver strong results 8% 53.2% 13% 1Q26 MCO 1Q26 MCO Adjusted 1Q26 MCO Adjusted Revenue Growth1 Operating Margin2 Diluted EPS Growth1,2 DEEP CURRENTS FOCUSED INVESTMENTS TO DEEPENING FUELING ISSUANCE DRIVE MA GROWTH PARTNERSHIPS Datacenter Infrastructure
Slide 7: Scaling and embedding decision-grade intelligence across our strategic initiatives
Scaling and embedding decision-grade intelligence across our strategic initiatives Lending and Credit Insurance KYC and Ratings Decisioning Underwriting Compliance Advancing digital finance: AI-native credit decisioning High-definition models Multi-channel delivery embedding high-precision built int
Slide 8: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER First Quarter 2026 - Earnings Call 8
Slide 9: MA: strong recurring revenue growth and adjusted operating margin expansion
MA: strong recurring revenue growth and adjusted operating margin expansion 1Q 2026 TTM 1Q26 ARR2 Adjusted OC$1 OC$1 Operating Revenue Recurring Revenue Recurring Growth Margin Growth Revenue Growth Revenue Growth Growth Banking (6)% 9% 1% 7% 10% 1Q26 Insurance 11% 10% 14% 9% 7% 32.5% KYC 17% 11% 19
Slide 10: MIS: record revenue with impressive operating leverage
MIS: record revenue with impressive operating leverage TOTAL 1Q26 REVENUE 1Q26 ISSUANCE3 OC$1 YoY $1,911 $2,027 $1,153 Change YoY Change 6% $1,065 Billions 8% $176 8% 6% $163 6% (OC$1) $194 2% (1)% $191 $137 (1)% (3)% 1Q25 1Q26 Millions $138 1Q26 ADJUSTED OPERATING MARGIN $564 $633 12% 10% 66.7% 66.
Slide 11: MIS & MA: maintaining full year 2026 guidance
MIS & MA: maintaining full year 2026 guidance1 AS OF FEBRUARY 18, 2026 AS OF APRIL 22, 2026 MOODY’S INVESTORS SERVICE Issuance2 Increase in the low-single-digit percent range No change Revenue Increase in the high-single-digit percent range No change Adjusted Operating Margin Approximately 65% No ch
Slide 12: MCO: full year 2026 guidance
MCO: full year 2026 guidance1 AS OF FEBRUARY 18, 2026 AS OF APRIL 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 change Interest Expens
Slide 13: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER First Quarter 2026 - Earnings Call 13
Slide 14: Supplemental Information
Supplemental Information First Quarter 2026 - Earnings Call 14
Slide 15: Incremental information
Incremental information Projected capital expenditures for 2026 include ~$100M in incremental capital expenditures The Company presents Annualized Recurring Revenue (“ARR”) on an organic associated with office relocations in New York and London. constant currency basis. In order to compare period-ov
Slide 16: MIS: maintaining full-year issuance guidance
MIS: maintaining full-year issuance guidance MARKET CONSIDERATIONS FY 2026 ISSUANCE GUIDANCE1,2 MACROECONOMICS & GEOPOLITICS Increase of LSD % Total MIS Rated Issuance → Geopolitical risks to energy, defense, and trade → Policy and structural drivers of global growth → AI- and tech-driven investment
Slide 17: 2026: expect default rates to decline and M&A to pickup
2026: expect default rates to decline and M&A to pickup DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1 FIRST TIME MANDATES (FTMs) 750 Baseline Optimistic Moderately Pessimistic Severely Pessimistic ~1,135 to ~735 ~765 850 12.5% ~750 ~700 ~595 ~450 10.0% 2 2019 2020 2021 2022 2
Slide 18: MIS: macroeconomic assumptions underpinning our full year 2026 outlook
MIS: macroeconomic assumptions underpinning our full year 2026 outlook1 MACROECONOMIC ASSUMPTIONS TAILWINDS Ongoing refinancing needs with 6% growth → Real GDP2: U.S.: 1.5% - 2.5%3; Euro area: 1.0% - 2.0%3; Global: 2.0% - 3.0%3 in maturity walls over next 4 years5 → Global policy rates: U.S. rate cu
Slide 19: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($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 20: 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 21: 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 22: 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% ~1% range 2.5% to 3.5% ~1% ~(1.5%) $4.4B FY 2025 Operating Incentive and Depreciation and Reserve for International Acquired and Divested FY 2026F Operating Expenses
Slide 23: 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 ~110% ~100% ~111% ~96% ~$0.7B ~90% ~76% $0.7B $2.8B $0.6B to $2.5B $2.6B $3.0B ~$2.5B $1.6B $1.3B 2024 2025 2026F2
Slide 24: 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 25: Teleconference details
Teleconference details DIAL IN REPLAY AVAILABLE FROM April 22, 2026, through April 29, 2026. Webcast Dial In Dial In Replay → Go to ir.moodys.com → U.S. & Canada: → U.S. & Canada: → Click on “Events & +1-800-715-9871 +1-800-770-2030 Presentations” → Non-U.S. & Canada: → Non-U.S. & Canada: → Click on
Slide 26: Moody's attendance at upcoming conferences
Moody’s attendance at upcoming conferences May 5 Barclays Americas Select Conference May 28 Autonomous Bernstein Strategic Decisions Conference Q2 Planned Executive Roadshows Dallas, Montréal, San Francisco, and Toronto First Quarter 2026 - Earnings Call 26
Slide 27: Appendix
Appendix First Quarter 2026 - Earnings Call 27
Slide 28: Glossary of terms and abbreviations
Glossary of terms and abbreviations Term Definition CFG Corporate finance group; an LOB of MIS Data and LOB within MA which provides vast data sets on companies and securities via data feeds and data applications products Information (D&I) Decision LOB within MA that provides subscription-based solu
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 Marc
Slide 31: 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 32: 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 33: 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 Three Months Ended March 31, because management deems these metrics to be useful measures to provide additional perspective on Moody’s operating
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 Three Months Ended March 31, because management deems these metrics to be useful measures to provide additional perspective on Moody’s operating
Slide 35: Organic constant currency revenue growth
Three Months Ended March 31, Organic constant Amounts in millions MCO revenue FX impact $ 2026 2,079 $ (46) 2025 1,924 $ — Change 155 (46) Growth 8% currency revenue Inorganic revenue from acquisitions Divestitures Organic constant currency MCO revenue $ (5) — 2,028 $ — (14) 1,910 $ (5) 14 118 6% gr
Slide 36: Organic constant currency revenue growth
Three Months Ended March 31, Organic constant Amounts in millions MA recurring revenue $ 2026 909 $ 2025 822 Change $ 87 Growth 11% currency revenue FX impact (25) — (25) Inorganic recurring revenue from acquisitions (2) — (2) growth Organic constant currency MA recurring revenue $ 882 $ 822 $ 60 7%
Slide 37: Organic constant currency revenue growth
Three Months Ended March 31, Organic constant Amounts in millions MIS revenue $ 2026 1,153 $ 2025 1,065 $ Change 88 Growth 8% currency revenue FX impact Inorganic revenue from acquisitions (21) (3) — — (21) (3) growth Organic constant currency MIS revenue Corporate Finance revenue $ $ 1,129 633 $ $
Slide 38: MA Retention
MA Retention Definition: Customer retention measures the customer relationships and major product lines we successfully retained during the period, while the inverse (attrition) captures full relationship losses and major product line cancellations. Methodology update: As part of a broader review of
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 Approximately 45% Depreciation and amortization Approximately 6% Restructu
Slide 40: First 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