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Moody's MCO MIS — Effect of exchange rate changes

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Other financials

Income statement

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Revenue$2.2B+15.1%
Gross profit$1.7B+18.3%
Operating income$1.0B+27.9%
Net income$878.0M+51.9%
EPS (diluted)$5.03+56.7%

Balance sheet

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Cash & equivalents$1.5B-32.5%
Total debt$7.5B+3.3%
Total equity$3.0B-23.4%
Total assets$14.7B-5.2%

Cash flow

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Operating cash flow$779.0M+43.5%
CapEx$91.0M+21.3%
Free cash flow$688.0M+47.0%

Valuation

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Market cap$83.82B-9.7%
Enterprise value$89.87B-8.2%
P/E30×-13.5×
P/S10.3×-2.4×

Profitability

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Gross margin75%+2.2pp
Operating margin44.8%+4.2pp
Net margin34.3%+5.1pp
FCF margin36.4%+3.9pp

Returns & leverage

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Return on equity80.2%+25.0pp
Debt / equity2.5×+0.6×
Current ratio1.2×-0.6×

Where this comes from

Reported directly by Moody's in its filing.

Tagged under the XBRL concept mco:EffectOfExchangeRateOnDeferredRevenue.

The source filing: Moody's’s 10-Q, filed July 23, 2026.

Filed
Jul 23, 2026, 4:19 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001628280-26-049398
Line itemThree Months Ended June 30, 2026 / MAThree Months Ended June 30, 2026 / MISThree Months Ended June 30, 2026 / TotalThree Months Ended June 30, 2025 / MAThree Months Ended June 30, 2025 / MISThree Months Ended June 30, 2025 / Total
Balance at March 31,$1,506$368$1,874$1,462$360$1,822
Changes in deferred revenue:
Revenue recognized that was included in the deferred revenue balance at the beginning of the period(665)(126)(791)(562)(123)(685)
Increases due to amounts billable excluding amounts recognized as revenue during the period453106559346105451
Adjustment related to divestiture of business(1)55
Effect of exchange rate changes2(1)139847
Total changes in deferred revenue(205)(21)(226)(177)(10)(187)
Balance at June 30,$1,301$347$1,648$1,285$350$1,635

Item 1. Financial Statements

FAQ

What is Moody's's MIS — effect of exchange rate changes?
Moody's (MCO) reported MIS — effect of exchange rate changes of -$1M in Q2 2026.
How has Moody's's MIS — effect of exchange rate changes changed year-over-year?
Moody's's MIS — effect of exchange rate changes decreased by 112.5% year-over-year, from $8M to -$1M.
What is the long-term trend for Moody's's MIS — effect of exchange rate changes?
Over 3 years (2021 to 2025), Moody's's MIS — effect of exchange rate changes has grown at a 35.7% compound annual growth rate (CAGR), from -$4M to $10M.
What does MIS — effect of exchange rate changes mean?
This metric measures the impact of foreign currency fluctuations on the credit ratings segment's financial results. Since the segment operates globally, changes in exchange rates can distort reported revenue and liability figures. This helps investors distinguish between operational performance and currency-driven volatility.

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