Moody's Corporation · NYSE:MCO
Moody's — Q4 2025 Earnings Presentation
43 slides from Moody's's earnings presentation, Feb 18, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Call
Fourth Quarter and Full Year 2025 Earnings Call February 18,,2026
Slide 2: Shivani Kak, Head of Investor Relations
Shivani Kak HEAD OF INVESTOR RELATIONS Fourth Quarter and Full Year 2025 - 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 Fourth Quarter and Full Year 2025 - Earnings Call 4
Slide 5: Key Takeaways
Outstanding year across the firm, setting the stage for continued growth Key Takeaways 1 → Highest annual revenue in 125+ year history: $7.7B, up 9% year-over-year → Expanded Adjusted Operating Margin1 by 300bps to 51.1% → Delivered 20% Adjusted Diluted EPS1 growth 2 MIS surpassed $4.1B in revenue f
Slide 6: Consistent execution drove profitable growth in 2025, supports confidence in our outlook for 2026
Consistent execution drove profitable growth in 2025, supports confidence in our outlook for 2026 9% 51.1% 20% FY25 MCO FY25 MCO Adjusted FY25 MCO Adjusted Revenue Growth1 Operating Margin2 Diluted EPS Growth1,2 DEEP CURRENTS FOCUSED INVESTMENTS TO EXTERNAL FUELING ISSUANCE DRIVE FUTURE GROWTH RECOG
Slide 7: Moody's: the trusted engine for AI-enabled decisioning
Moody's: the trusted engine for AI-enabled decisioning STRUCTURAL COMPETITIVE ADVANTAGES AI DRIVING MEASURABLE CUSTOMER OUTCOMES Decision-grade risk intelligence ARR growth rate for customers who have → Moody’s transforms information, decades of expertise, and domain knowledge and judgment into vali
Slide 8: A powerhouse compounding shareholder value
A powerhouse compounding shareholder value Differentiated capabilities, amplified by AI, give Moody's the "right to win" across multiple deep currents... Ratings Data & Information Research & Insights Decision Solutions Stock of forward The gold standard for Launching next-gen Lending maturities rem
Slide 9: Noémie Heuland, Chief Financial Officer
Noémie Heuland CHIEF FINANCIAL OFFICER Fourth Quarter and Full Year 2025 - Earnings Call 9
Slide 10: Disciplined execution drove 20% Adjusted Diluted EPS growth
Disciplined execution drove 20% Adjusted Diluted EPS growth1,2 MCO Full Year 2025 $7.7B 9% 51.1% $14.94 $2.6B Revenue Adjusted Adjusted Free Cash Revenue Growth1 Operating Margin2 Diluted EPS2 Flow2 MA Full Year 2025 MIS Full Year 2025 9% 8% 8% 33.1% 9% 9% 7% 63.6% Revenue OC$ Recurring ARR Adjusted
Slide 11: MA: scaling profitably with durable growth throughout
MA: scaling profitably with durable growth throughout Recurring revenue growth and adjusted operating margin expansion are strengthening MA's earnings power 4Q 2025 FY 2025 ARR2 FY 2025 OC$1 OC$1 Revenue Recurring Revenue Recurring Growth Revenue Growth Revenue Growth MA Adjusted Growth Growth Opera
Slide 12: MIS: 4Q revenue growth outpaced increase in issuance
MIS: 4Q revenue growth outpaced increase in issuance 4Q25 transactional revenue growth of 22% vs. 10% for issuance TOTAL 4Q25 REVENUE 4Q25 ISSUANCE2 YoY $1,379 $946 Change $1,253 10% Billions $809 17% $149 30% $115 $169 1% $167 4Q24 4Q25 Millions $139 1% $138 4Q25 ADJUSTED OPERATING MARGIN $480 58.5
Slide 13: MIS: Agency of Choice rated $6.6T in 2025
MIS: Agency of Choice rated $6.6T1 in 2025 FY25 REVENUE FY25 ISSUANCE2 YoY $4,119 Change $3,793 $6,609 9% $6,194 7% $635 13% Billions $564 $759 4% $727 $558 8% Millions $518 FY24 FY25 FY25 ADJUSTED OPERATING MARGIN $1,950 $2,132 9% 63.6% 60.1% 350 bps FY24 FY25 CFG SFG FIG PPIF MIS Other 1 FY24 FY25
Slide 14: MIS: issuance backdrop for 2026
MIS: issuance backdrop for 2026 MARKET CONSIDERATIONS FY 2026 ISSUANCE GUIDANCE1,2 MACROECONOMICS & GEOPOLITICS Total MIS Rated Issuance Increase of LSD % → Capital expenditure, including AI/tech related → Defense investments Investment Grade Increase of approx. 10% → Policy trends and their impact
Slide 15: MIS & MA: full year 2026 guidance
MIS & MA: full year 2026 guidance1 AS OF FEBRUARY 18, 2026 MOODY’S INVESTORS SERVICE Issuance2 Increase in the low-single-digit percent range Revenue Increase in the high-single-digit percent range Adjusted Operating Margin Approximately 65% MOODY’S ANALYTICS ARR3 Increase in the high-single-digit p
Slide 16: MCO: full year 2026 guidance
MCO: full year 2026 guidance1 AS OF FEBRUARY 18, 2026 MOODY’S CORPORATION Revenue Increase in the high-single-digit percent range Operating Expenses Increase in the mid-single-digit percent range Adjusted Operating Margin2 52% to 53% Interest Expense, Net $210 to $230 million Non-operating Expense3
Slide 17: Questions and Answers
Rob Fauber Questions and PRESIDENT AND CHIEF EXECUTIVE OFFICER Answers Noémie Heuland CHIEF FINANCIAL OFFICER Fourth Quarter and Full Year 2025 - Earnings Call 17
Slide 18: Supplemental Information
Supplemental Information Fourth Quarter and Full Year 2025 - Earnings Call 18
Slide 19: Incremental information
Incremental information Projected capital expenditures for 2026 include ~$100M in incremental capital Private Credit activity, and its related revenue, is distributed across MIS and may expenditures associated with office relocations in New York and London. be reported within any of its lines of bus
Slide 20: MA: building on a foundation of strong customer retention
MA: building on a foundation of strong customer retention MA ARR1 GROWTH ATTRIBUTION 7% 8% 108% 93% Year-end 2025 Retained Base Upgrades and Price New Sales Business Base 7% 9% 109% 94% Year-end 20242 Retained Base Upgrades and Price New Sales Business Base 7% 9% 110% 94% Year-end 2023 Retained Base
Slide 21: Default rates expected to decline in 2026
Default rates expected to decline in 2026 DEFAULT RATES FOR GLOBAL SPECULATIVE- GRADE CORPORATE RATED ISSUANCE1 FIRST TIME MANDATES (FTMs) 750 Baseline Optimistic Moderately Pessimistic Severely Pessimistic ~1,135 to ~735 ~765 850 ~750 ~700 12.5% ~595 ~450 10.0% 2019 2020 2021 2022 2023 2024 2025 20
Slide 22: MIS: macroeconomic assumptions underpinning our full year 2026 outlook
MIS: macroeconomic assumptions underpinning our full year 2026 outlook1 MACROECONOMIC ASSUMPTIONS TAILWINDS Ongoing refinancing needs with 6% growth in → Real GDP2: U.S.: 1.5% - 2.5%; Euro area: 1.0% - 2.0%; Global: 2.0% - 3.0% maturity walls over next 4 years3 → Global policy rates: Monetary policy
Slide 23: Strong refinancing needs support future issuance
Strong refinancing needs support future issuance DEBT MATURITIES: Moody’s-rated U.S. Non-Financial Corporate Bonds and Loans ($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 24: 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 25: 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 26: 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% Negligible range 3% to 4% ~1% ~(0.5%) $4.4B FY 2025 Operating Growth, Incentive and Acquired and Divested Depreciation and Restructuring and FY 2026F Operating Expens
Slide 27: 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 95% 90% to to 100% 95% ~111% ~96% ~90% ~76% ~$0.7B $0.7B $2.8B $0.6B to $2.5B $2.6B $3.0B ~$2.0B $1.6B $1.3B 2024
Slide 28: 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 GREAT RECESSION CAGR Accelerating organic growth 2001 RECESSION 17% 2 Acquisitions Advance global integrated risk assessment stra
Slide 29: Teleconference details
Teleconference details DIAL IN REPLAY AVAILABLE FROM February 18, 2026, through February 25, 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: → Cl
Slide 30: Moody's attendance at upcoming conferences
Moody’s attendance at upcoming conferences March 3 Raymond James Institutional Investors Conference March 6 Daiwa Investment Conference Tokyo 2026 March 12 Bank of America Information and Business Services Conference Fourth Quarter and Full Year 2025 - Earnings Call 30
Slide 31: Appendix
Appendix Fourth Quarter and Full Year 2025 - Earnings Call 31
Slide 32: Glossary of terms and abbreviations
Glossary of terms and abbreviations Term Definition CFG Corporate finance group; a 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 solut
Slide 33: Annualized Recurring Revenue (ARR)
Annualized Recurring Revenue (ARR) The Company presents Annualized Recurring Revenue (“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 tim
Slide 34: 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 Dece
Slide 35: 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. Year Ended Dec
Slide 36: 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 37: 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 38: 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 Three Months Ended December 31, Year Ended December 31, The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspe
Slide 39: 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 Three Months Ended December 31, Year Ended December 31, The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide 2025 2024 2025 20
Slide 40: Organic constant currency revenue growth
Three Months Ended December 31, Year Ended December 31, Organic constant Amounts in millions MCO revenue FX impact $ 2025 1,889 $ (31) 2024 — Change Growth 1,672 $ 217 (31) 13% $ 2025 7,718 $ (68) 2024 Change Growth 7,088 $ 630 — (68) 9% currency revenue Inorganic revenue from acquisitions Divestitu
Slide 41: Organic constant currency revenue growth
Three Months Ended December 31, Year Ended December 31, Organic constant Amounts in millions MA recurring revenue $ 2025 913 $ 2024 820 Change Growth $ 93 11% 2025 2024 $ 3,462 $ 3,125 Change Growth $ 337 11% currency revenue FX impact (18) — (18) (40) — (40) Inorganic recurring revenue from acquisi
Slide 42: 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 45% to 46% Depreciation and amortization Approximately 6% Restructuring Ap
Slide 43: Fourth Quarter and Full Year 2025 - 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