Moody`s Corp.

Strong Q2 results + broad-based growth (Good / core takeaway) - Enterprise: Revenue +15%, adjusted operating income +25%, adjusted operating margin +440 bps to 55.3%, adjusted diluted EPS +31% to $4.68. - Investor Service (ratings): Revenue +25%; transaction revenue +34%; rated > $2T of debt for the 2nd consecutive quarter. - Moody’s Analytics (MA): ARR ~ $3.7B, +~9% YoY, 95% trailing 12-month retention; adjusted operating margin +150 bps to 33.6%. - Surprising positive: Performance strength appears not tied to a single market factor—issuance strength is described as diversified across multiple drivers.

Guidance raised / EPS range tightened (Good) - Full-year 2026 adjusted diluted EPS midpoint raised/increased: guidance updated to $16.50–$17.00 (midpoint $16.75), ~12% growth at midpoint. - Issuance expectations raised: upgraded from low to mid-single-digit % growth for full-year rated issuance (revenue guidance held at high single-digit growth). - Free cash flow: guidance raised to ~$2.7B–$2.9B (updating working capital forecast and restructuring costs). - Margin outlook: MIS margin expected to follow seasonality; MA margin guidance maintained 34%–35% for full year.

Second-half cadence expectations (Mostly neutral; some “conservatism” explained) - Management says Q2 represented catch-up to the plan—recovery from a previously expected “air pocket” arrived earlier than planned (pulled forward by a record June issuance). - MIS revenue outlook: low single-digit growth in Q3; Q4 roughly flat vs prior year, consistent with normal seasonality. - Key dynamic: issuance guidance is raised but revenue isn’t, due to mix (more growth from data center / financial institutions which carry lower average yields than some other issuance segments).