MCOMEDIUM SIGNALFINANCIAL10-K

Moody's delivered solid financial performance with meaningfully higher revenue and net income while substantially increasing shareholder returns through expanded buybacks and dividends.

The company demonstrated strong operational execution with revenue growth driving proportional increases in operating income, suggesting effective margin management. The substantial increase in share repurchases to $1.6B alongside higher dividend payments reflects management's confidence in cash generation and commitment to returning capital to shareholders.

Comparing 2026-02-18 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

Moody's reported robust financial results with revenue growing to $4.2B and net income rising to $2.5B, while operating leverage remained stable as operating income increased proportionally. The company strengthened its balance sheet position with stockholders' equity expanding to $4.1B and current liabilities declining to $3.0B, creating improved financial flexibility. Capital allocation was notably shareholder-friendly, with share buybacks increasing 24% to $1.6B and dividend payments growing 16% to $337M, reflecting strong cash generation capabilities.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+24.4%
$1.3B→$1.6B

Share repurchases increased 24.4% — management returning capital, signals confidence in intrinsic value.

R&D Expense
P&L
+21.7%
$42.0M→$51.1M

R&D investment increased 21.7% — signals commitment to future product development, though near-term margin impact.

Net Income
P&L
+19.5%
$2.1B→$2.5B

Net income grew 19.5% — bottom-line growth signals improving overall business health.

Current Liabilities
Balance Sheet
-17.1%
$3.6B→$3.0B

Current liabilities reduced — improved short-term financial position and working capital health.

Revenue
P&L
+16.6%
$3.6B→$4.2B

Revenue growing 16.6% — solid top-line momentum, watch margins for quality of growth.

Operating Income
P&L
+16.6%
$2.9B→$3.4B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Dividends Paid
Cash Flow
+16.1%
$290.4M→$337.2M

Dividend payments increased 16.1% — management confidence in sustained cash generation.

Stockholders Equity
Balance Sheet
+13.7%
$3.6B→$4.1B

Equity base grew 13.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Accounts Receivable
Balance Sheet
+12.4%
$1.8B→$2.0B

Receivables grew 12.4% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-14
ADDED
As of January 31, 2026, 177.3 million shares of Common Stock of Moody s Corporation were outstanding.
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 36 The Company 36 Critical Accounting Estimates 36 Reportable Segments 39 Results of Operations 40 Market Risk 56 Liquidity and Capital Resources 57 Recently Issued Accounting Pronouncements 63 Contingencies 63 Forward-Looking Statements 64 Item 7A.
This LOB includes credit research; credit models and analytics; economics data and models; and structured finance solutions Retirement Plans Moody s funded and unfunded pension plans, the healthcare plans and life insurance plans RMBS Residential mortgage-backed securities; an asset class within SFG RMS A global provider of climate and natural disaster risk modeling and analytics; acquired by the Company in September 2021 ROU Asset Assets which represent the Company s right to use an underlying asset for the term of a lease SEC U.S.
Moody s offerings are distinguished by our vast proprietary and curated data and validated analytical models, which provide the trusted foundation that enable our customers to navigate an increasingly complex risk landscape.
Moody s solutions enable the transformation of information into decision-grade intelligence, which is deeply interconnected across risk domains.
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REMOVED
As of January 31, 2025, 180.0 million shares of Common Stock of Moody s Corporation were outstanding.
MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 38 The Company 38 Critical Accounting Estimates 38 Reportable Segments 41 Results of Operations 42 Market Risk 56 Liquidity and Capital Resources 57 Recently Issued Accounting Pronouncements 61 Contingencies 61 Forward-Looking Statements 61 Item 7A.
Competition and Markets Authority Government department in the U.K.
from the EU Gen AI Generative Artificial Intelligence GLoBE Global Anti-Base Erosion, also known as "Pillar II"; tax model issued by the OECD in 2023 HM Treasury His Majesty's Treasury; the department of the Government of the United Kingdom responsible for developing and executing the government's public finance policy and economic policy ICRA ICRA Limited; a provider of credit ratings and research in India.
This LOB includes credit research; credit models and analytics; economics data and models; and structured finance solutions Retirement Plans Moody s funded and unfunded pension plans, the healthcare plans and life insurance plans Revenue Accounting Standard Updates to the ASC pursuant to ASU No.
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