Performance Overview - In Q3 2025, Moody's total revenue reached $2.007 billion, a year-over-year increase of 10.7%, exceeding market expectations. Adjusted earnings per share were $3.92, up 22% from the previous year, significantly higher than the market forecast of $3.68–$3.70 [1] - Net profit increased by 21% year-over-year, indicating an improvement in profit quality as the growth rate of profits outpaced revenue growth [1] Operating Conditions - The operating profit margin improved to 45.7%, up 500 basis points compared to the same period in 2024; the adjusted operating profit margin reached 52.9%, an increase of 510 basis points year-over-year. This improvement was primarily due to revenue growth and strict cost control, with non-interest expenses rising only 4% year-over-year, below revenue growth, releasing 493 basis points of operating leverage [2] Business Progress - Moody's Investors Service (MIS) benefited from a recovery in global debt issuance, with issuer services revenue growing by 10% year-over-year [3] - Moody's Analytics (MA) reported revenue of $909 million, a 9.4% increase, with decision solutions revenue growing by 10.7%. The recurring revenue proportion reached 96%, indicating enhanced business stickiness [3] Cash Flow and Capital Return - Operating cash flow for Q3 was $743 million, with free cash flow at $658 million. The company returned $1.2 billion to shareholders during the quarter (including dividends and stock buybacks) and authorized an additional $4 billion in stock buybacks, with a year-to-date payout ratio of 92%, reflecting confidence in cash flow stability [4] Company Performance Guidance - Moody's raised its adjusted earnings per share guidance for FY 2025 to $14.50–$14.75, above the previous range of $13.50–$14.00 and significantly exceeding the market expectation of $14.14. The full-year revenue growth forecast was upgraded from "mid-single digits" to "high-single digits" [5] Business and Technology Development - The company enhanced service efficiency through the application of artificial intelligence in risk modeling, with the customer penetration rate of its flagship product, CreditView, continuing to increase. The adjusted return on tangible common equity (ROTCE) reached 25.6%, up 2.8 percentage points year-over-year, reflecting optimized capital utilization [6]

Fourth Quarter and Full Year 2025 Earnings Call February 18,,2026 Shivani Kak HEAD OF INVESTOR RELATIONS Fourth Quarter and Full Year 2025 - Earnings Call 2 Disclaimer Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody's business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual res ...