$MCO

MOODYS CORP /DE/

CIK:0001059556|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 2,185	$ 1,898	$ 4,264	$ 3,822
Expenses
Operating	518	489	1,049	980
Selling, general and administrative	463	443	940	882
Depreciation and amortization	126	120	248	233
Restructuring	32	27	59	60
Charges related to asset abandonment	0	1	0	3
Total expenses	1,139	1,080	2,296	2,158
Operating income	1,046	818	1,968	1,664
Non-operating income (expense), net
Interest expense, net	(58)	(61)	(124)	(122)
Other non-operating income, net	2	15	16	34
Gain on business divestitures	181	0	181	0
Total non-operating income (expense), net	125	(46)	73	(88)
Income before provision for income taxes	1,171	772	2,041	1,576
Provision for income taxes	292	193	501	372
Net Income	879	579	1,540	1,204
Less: Net income attributable to noncontrolling interests	1	1	1	1
Net income attributable to Moody's	$ 878	$ 578	$ 1,539	$ 1,203
Earnings per share attributable to Moody's common shareholders
Basic (in usd per share)	$ 5.04	$ 3.22	$ 8.77	$ 6.69
Diluted (in usd per share)	$ 5.03	$ 3.21	$ 8.75	$ 6.66
Weighted average number of shares outstanding
Basic (in shares)	174.1	179.7	175.5	179.9
Diluted (in shares)	174.5	180.2	175.9	180.5

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net Income	$ 1,540	$ 1,204
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	248	233
Stock-based compensation	117	117
Deferred income taxes	(28)	17
Non-cash restructuring and abandonment-related charges	2	7
Provision for credit losses on accounts receivable	7	6
Gain on business divestitures	(181)	0
Changes in assets and liabilities:
Accounts receivable	80	94
Other current assets	87	(25)
Other assets	5	(24)
Lease obligations	(3)	(19)
Accounts payable and accrued liabilities	(193)	(341)
Deferred revenue	20	26
Uncertain tax positions and other non-current tax liabilities	13	10
Other liabilities	4	(5)
Net cash provided by operating activities	1,718	1,300
Cash flows from investing activities
Payments to Acquire Property, Plant, and Equipment	(186)	(160)
Purchases of investments	(74)	(118)
Sales and maturities of investments	106	579
Purchases of investments in non-consolidated affiliates	(2)	(12)
Receipts from settlements of net investment hedges	0	32
Cash paid for acquisitions, net of cash acquired	(23)	(223)
Cash received upon business divestitures, net of cash transferred to purchaser	200	0
Net cash provided by investing activities	21	98
Cash flows from financing activities
Repayment of notes	0	(700)
Proceeds from stock-based compensation plans	24	32
Repurchase of shares related to stock-based compensation and excise tax payments on share repurchases	(120)	(88)
Treasury shares	(2,165)	(657)
Dividends	(365)	(366)
Dividends to noncontrolling interests	(3)	(1)
Net cash used in financing activities	(2,629)	(1,780)
Effect of exchange rate changes on cash and cash equivalents	(27)	148
Decrease in cash and cash equivalents	(917)	(234)
Cash and cash equivalents, beginning of period	2,384	2,408
Cash and cash equivalents, end of period	$ 1,467	$ 2,174

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,467	$ 2,384
Short-term investments	29	64
Accounts receivable, net of allowance for credit losses of $29 in 2026 and $29 in 2025	1,919	2,024
Other current assets	567	714
Total current assets	3,982	5,186
Property and equipment, net of accumulated depreciation of $1,579 in 2026 and $1,572 in 2025	754	722
Operating lease right-of-use assets	504	282
Goodwill	6,318	6,368
Intangible assets, net	1,749	1,866
Deferred tax assets, net	277	305
Other assets	1,091	1,101
Total assets	14,675	15,830
Current liabilities:
Accounts payable and accrued liabilities	1,086	1,304
Current portion of operating lease liabilities	93	95
Current portion of long-term debt	571	0
Deferred revenue	1,595	1,582
Total current liabilities	3,345	2,981
Non-current portion of deferred revenue	53	56
Long-term debt	6,375	6,994
Deferred tax liabilities, net	292	315
Uncertain tax positions	170	158
Operating lease liabilities	483	262
Other liabilities	791	859
Total liabilities	11,509	11,625
Contingencies
Shareholders' equity:
Preferred stock, par value $0.01 per share; 10,000,000 shares authorized; no shares issued and outstanding	0	0
Capital surplus	1,753	1,676
Retained earnings	19,027	17,853
Treasury stock, at cost; 169,721,288 and 165,359,285 shares of common stock at June 30, 2026 and December 31, 2025, respectively	(17,204)	(14,978)
Accumulated other comprehensive loss	(554)	(500)
Total Moody's shareholders' equity	3,025	4,054
Noncontrolling interests	141	151
Total shareholders' equity	3,166	4,205
Total liabilities, noncontrolling interests and shareholders' equity	14,675	15,830
Series Common Stock
Shareholders' equity:
Common stock	0	0
Non Series Common Stock
Shareholders' equity:
Common stock	$ 3	$ 3