MCONYSEServices-Consumer Credit Reporting, Collection AgenciesUS GAAP · USD

Moody's Corporation

Moody’s Corporation is a U.S.-based provider of credit ratings, risk analytics, and decision-support data used by financial institutions, corporations, and governments. Its business is built around two segments: Moody’s Investors Service, which rates debt and structured finance, and Moody’s Analytics, which sells data, research, and cloud-based workflow tools for credit, banking, insurance, and KYC use cases.

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Revenue7,718m USD
+8.9 %y/y
Operating profit (EBIT)3,351m USD
+16.6 %y/y
EBIT margin43.4%
+2.9 ppy/y
Net income2,459m USD
+19.5 %y/y
Free cash flow2,575m USD
+2.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02,0004,0006,0008,000m USD2020: 5,371 m USD2020: EBIT 2,388 m USD20202021: 6,218 m USD2021: EBIT 2,844 m USD20212022: 5,468 m USD2022: EBIT 1,883 m USD20222023: 5,916 m USD2023: EBIT 2,137 m USD20232024: 7,088 m USD2024: EBIT 2,875 m USD20242025: 7,718 m USD2025: EBIT 3,351 m USD20257,7183,351
RevenueOperating profit (EBIT)

Business

Share of revenue
Moody's Investors Service (MIS)45 %

Credit ratings, research, and risk analysis for debt obligations and issuers worldwide.

Research & Insights10 %

Fixed income and economic research products that support investment and risk decisions.

Data & Information20 %

Curated company, credit, and risk databases used to support analysis and workflows.

Decision Solutions25 %

Subscription software for banking, insurance, and KYC workflows.

Products

Reported · share of revenue
62.7%37.3%FY2025100 %
  • Recurring Revenue62.7 %
  • Transaction Revenue37.3 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Moody’s sells primarily to financial services firms, including banks, insurers, asset managers, and investors that need credit opinions, risk data, and workflow tools. It also serves corporations and public-sector issuers that access ratings to support debt issuance, as well as governments and other entities that use its research and analytics. Demand is tied to capital markets activity, risk management needs, regulatory compliance, and the adoption of integrated data and AI-enabled decision tools.

Banks and lenders

Buy credit risk data, lending workflow tools, and analytics to originate, underwrite, and monitor borrowers.

Investors and asset managers

Use ratings and fixed income research to evaluate debt securities and portfolio risk.

Corporates and debt issuers

Purchase ratings and related services to support market access and debt strategy.

Insurance companies

Use analytics and workflow tools to assess counterparty, portfolio, and underwriting risk.

Governments and public sector

Use ratings and risk analysis for funding, fiscal planning, and market transparency.

Compliance and KYC users

Buy identity verification and monitoring tools to meet regulatory and onboarding requirements.

Strategy

Moody’s strategy is to deepen its role as a decision-grade intelligence provider by combining proprietary data, analytics, and workflow software across risk domains. Management also emphasizes Gen AI and cloud-based tools, targeted acquisitions, and continued investment in products that embed Moody’s insights directly into customer workflows. Capital allocation remains focused on organic growth, selective inorganic expansion, dividends, and share repurchases.

Expand AI-enabled workflow productsShort term

AI and cloud delivery can increase customer stickiness and broaden use cases across risk management.

Grow integrated risk and data solutionsMedium term

Cross-selling across credit, climate, and operational risk can raise wallet share and deepen customer dependence.

Support capital markets and ratings franchiseMedium term

MIS benefits from debt issuance activity and the continued relevance of ratings in global markets.

Geography

Moody’s is globally distributed, with operations in more than 40 countries and a workforce of about 16,000. Revenue is disclosed by broad regions rather than by country in the provided filings, with the United States as the largest market and EMEA the largest non-U.S. region in the quarterly disclosures. This geographic mix matters because Moody’s depends on global debt markets, regulatory regimes, and cross-border demand for ratings and analytics.

Risks

Moody’s faces regulatory, reputational, and technology risks because its products influence capital allocation and compliance decisions. The company is also exposed to cyclicality in debt markets, competition from new analytics providers, and execution risk as it rolls out Gen AI and acquires businesses. Global operations add foreign exchange, sanctions, cybersecurity, and tax-planning risks that can affect both revenue and operating costs.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Loss of credibility in ratings or analytics1Regulatory and legal risk2Technology and AI execution risk3Cyclicality in debt capital markets4Cybersecurity and third-party vendor risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Loss of credibility in ratings or analyticsImpact: HighLikelihood: Medium

    Moody’s brand is central to customer trust; errors or perceived conflicts can reduce demand.

    ExposureCredit ratingsResearchAI-supported outputs
  2. Regulatory and legal riskImpact: HighLikelihood: Medium

    The company operates in heavily regulated financial markets and must comply with U.S. and international rules.

    ExposureRatings processCompliance systemsSanctionsSecurities laws
  3. Technology and AI execution riskImpact: MediumLikelihood: Medium

    Gen AI products must be accurate, timely, and cost-effective to avoid customer dissatisfaction and liability.

    ExposureAI modelsData qualityWorkflow tools
  4. Cyclicality in debt capital marketsImpact: MediumLikelihood: Medium

    Ratings and related services depend on issuance volumes, refinancing, and M&A activity.

    ExposureCorporate debtStructured financePrivate credit
  5. Cybersecurity and third-party vendor riskImpact: MediumLikelihood: Medium

    A breach could impair data integrity, service continuity, and reputation.

    ExposureCloud platformsCustomer dataVendor systems

Accounting

Judgemental items
Revenue recognition

Moody’s sells a mix of ratings, subscriptions, and services with different timing patterns.

Impact: Affects quarterly revenue comparability and deferred revenue balances

Goodwill and acquired intangible assets

The company tests goodwill annually at the reporting-unit level.

Impact: Could create impairment charges if growth or margins weaken

Restructuring and asset abandonment

Management has recorded restructuring programs and asset abandonment charges.

Impact: Can materially affect operating income and adjusted margin reconciliation

Income taxes and global tax planning

The company notes exposure to tax authority review of global tax initiatives.

Impact: May change effective tax rate and cash tax payments

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Last updated: 24/09/2026