v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company is organized into two operating segments: MA and MIS and accordingly, the Company reports in two reportable segments: MA and MIS.
Revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. Additionally, revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. These intersegment fees are generally based on the market value of the products and services being transferred between the segments.
Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment.
For overhead costs and corporate expenses that benefit both segments, costs are generally allocated to each segment based on historical/budgeted revenue amounts.
“Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the CODM to allocate resources to the segments. Consequently, it is not practical to show assets by reportable segment.
Financial Information by Segment
The table below shows revenue, significant expenses regularly provided to the CODM and Adjusted Operating Income by reportable segment. The CODM, identified as the Company's CEO, utilizes the Adjusted Operating Income measure to assess the profitability of the Company and each of its reportable segments each quarter. Adjusted Operating Income is used in our budgeting and forecasting process, enabling the allocation of capital resources across the Company's strategic initiatives.
Three Months Ended June 30,
20262025
MA
MIS
Eliminations
Consolidated
MA
MIS
Eliminations
Consolidated
Total external revenue$925 $1,260 $— $2,185 $888 $1,010 $— $1,898 
Intersegment revenue3 52 (55)— 3 50 (53)— 
Revenue928 1,312 (55)2,185 891 1,060 (53)1,898 
Compensation expense
357 306 — 663 355 280 — 635 
Non-compensation expense
207 107 — 314 200 97 — 297 
Intersegment expense
52 3 (55)— 50 3 (53)— 
Total616 416 (55)977 605 380 (53)932 
Adjusted Operating Income$312 $896 $— $1,208 $286 $680 $— $966 
Less:

Depreciation and
amortization		102 24 — 126 97 23 — 120 
Restructuring27 5 — 32 18 9 — 27 
Reserve for international non-income tax obligation
2 — — 2 — — — — 
Duplicate Rent1 1 — 2 — — — — 
Charges related to asset abandonment— — — — 1 — — 1 
Operating Income$1,046 $818 
Non-operating income (expense), net$125 $(46)
Income before provision for income taxes
$1,171 $772 
Six Months Ended June 30,
20262025
MA
MIS
Eliminations
Consolidated
MA
MIS
Eliminations
Consolidated
Total external revenue$1,851 $2,413 $— $4,264 $1,747 $2,075 $— $3,822 
Intersegment revenue6 103 (109)— 6 99 (105)— 
Revenue1,857 2,516 (109)4,264 1,753 2,174 (105)3,822 
Compensation expense
731 613 — 1,344 717 560 — 1,277 
Non-compensation expense
409 198 — 607 392 193 — 585 
Intersegment expense
103 6 (109)— 99 6 (105)— 
Total
1,243 817 (109)1,951 1,208 759 (105)1,862 
Adjusted Operating Income$614 $1,699 $— $2,313 $545 $1,415 $— $1,960 
Less:

Depreciation and
amortization		202 46 — 248 191 42 — 233 
Restructuring47 12 — 59 44 16 — 60 
Reserve for international non-income tax obligation
36 — — 36 — — — — 
Duplicate Rent1 1 — 2 — — — — 
Charges related to asset abandonment— — — — 3 — — 3 
Operating Income$1,968 $1,664 
Non-operating income (expense), net$73 $(88)
Income before provision for income taxes
$2,041 $1,576 
The table below shows cumulative restructuring expense incurred through June 30, 2026 by reportable segment.
MAMISTotal
Strategic and Operational Efficiency Restructuring Program
$158 $54 $212 
The costs expected to be incurred related to the Strategic and Operational Efficiency Restructuring Program are $215 million to $240 million for the MA segment and $85 million to $110 million for the MIS segment, which include allocations of charges associated with corporate functions. This restructuring program is more fully discussed in Note 9.

Consolidated Revenue Information by Geographic Area
Three Months Ended June 30,
Six Months Ended June 30,
2026202520262025
United States$1,218 $992 $2,398 $2,057 
Non-U.S.:
EMEA650 613 1,265 1,182 
Asia-Pacific196 174 373 341 
Americas121 119 228 242 
Total Non-U.S.967 906 1,866 1,765 
Total$2,185 $1,898 $4,264 $3,822