10-KPeriod: FY2025

MOODYS CORP /DE/ Annual Report, Year Ended Dec 31, 2025

Filed February 18, 2026For Securities:MCO

Summary

Moody's Corporation (MCO) reported a strong financial performance for the fiscal year ending December 31, 2025, with total revenue increasing by 9% to $7.718 billion. This growth was driven by robust performance in both the Moody's Analytics (MA) and Moody's Investors Service (MIS) segments, each seeing a 9% rise in external revenue. The company experienced significant operating margin expansion, reaching 43.4% (or 51.1% on an adjusted basis), reflecting effective cost management alongside revenue growth. Diluted EPS saw a substantial increase of 21% to $13.67 (or 20% adjusted to $14.94), benefiting from improved profitability and a favorable effective tax rate. Moody's continued to invest in its business, with growth in MA driven by strong demand for insurance and KYC offerings, while MIS benefited from healthy investor demand and tight credit spreads. The company also demonstrated a commitment to shareholder returns, repurchasing shares and maintaining its dividend. Despite economic uncertainties and global risks, Moody's remains strategically positioned to leverage its data, analytics, and credit rating expertise. Investments in AI and data capabilities are central to its strategy for navigating future growth in an increasingly complex risk landscape. The company's outlook is positive, supported by secular trends in global finance and its ability to adapt to evolving market demands and technological advancements.

Financial Highlights

55 data points
Beta

Revenue

$7.72B

74.4% Gross Margin

Net Income

$2.46B

31.9% Net Margin

EPS (Diluted)

$13.67

Total Assets

$15.83B

Cash & Equivalents

$2.38B

Free Cash Flow

$2.58B

Financial Statements
Beta
Revenue$7.72B
Cost of Revenue$1.97B
Gross Profit$5.75B
SG&A Expenses$1.80B
Operating Expenses$4.37B
Operating Income$3.35B
Net Income$2.46B
EPS (Basic)$13.73
EPS (Diluted)$13.67
Shares Outstanding (Basic)179.10M
Shares Outstanding (Diluted)179.90M

Key Highlights

  • 1Moody's Corporation reported a 9% year-over-year increase in total revenue, reaching $7.718 billion for the fiscal year ended December 31, 2025.
  • 2Both Moody's Analytics (MA) and Moody's Investors Service (MIS) segments delivered strong revenue growth of 9% each.
  • 3Operating margin expanded significantly to 43.4% (Adjusted Operating Margin of 51.1%), indicating improved profitability and operational efficiency.
  • 4Diluted Earnings Per Share (EPS) rose by 21% to $13.67 (Adjusted Diluted EPS increased by 20% to $14.94), reflecting strong bottom-line performance.
  • 5Moody's Analytics saw particular strength in its Decision Solutions segment, with notable growth in Insurance and KYC offerings.
  • 6Moody's Investors Service experienced robust revenue growth across all its ratings lines of business, supported by strong investor demand and credit market conditions.
  • 7The company continued its capital return strategy, with significant share repurchase authority remaining and a consistent dividend payment.

Frequently Asked Questions

Moody's revenue growth of 9% was driven by strong performance across both its segments. Moody's Analytics (MA) experienced sustained demand for its insurance and KYC offerings, along with continued demand for credit research and data feed products. Moody's Investors Service (MIS) benefited from strong investor demand and tight credit spreads, which supported revenue growth in all ratings lines of business.

Moody's reported a 4% decrease in total operating and SG&A expenses. This was achieved through a decrease in incentive compensation, which aligned with actual financial and operational performance relative to targets. While salaries, benefits, and technology infrastructure costs increased due to headcount growth, acquisitions, and operational expansion, these were offset by cost management initiatives and the decrease in incentive compensation.

Moody's views AI, including Generative AI and Agentic AI, as a significant opportunity. The company is investing in these technologies to enhance its customer offerings, enabling clients to gain deeper, more integrated perspectives on risk. Moody's believes its proprietary data and AI capabilities position it well to benefit from these advancements, potentially reimagining knowledge-intensive workflows and empowering confident decision-making for organizations globally.

Moody's is committed to returning capital to shareholders through a combination of dividends and share repurchases. The company's Board approved a $4 billion share repurchase authorization in October 2025, with approximately $4.0 billion remaining available at year-end. Moody's also declared a quarterly dividend of $1.03 per share, payable in March 2026, demonstrating its consistent capital return policy.