{"schemaVersion":1,"research":true,"symbol":"mco","name":"Moody’s","topic":"moat","path":"/stock/mco/moat","status":"published","version":4,"updatedAt":"2026-10-17T21:38:25.386Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"The supplied passages support a narrow moat through Moody’s Analytics’ proprietary data and integration into regulated customer workflows, corroborated by signed multiyear subscriptions, recurring revenue growth and customer expansion. Realized annual price increases support pricing power, although their contribution is not isolated from volume. The evidence does not establish exceptional durability or a wide ratings franchise moat: competitive pricing pressure is disclosed, and recent ratings growth benefited from favorable issuance conditions.","advantages":[{"mechanism":"switching_costs","claim":"MA’s integration into banking, insurance and KYC workflows creates switching friction. Signed multiyear subscription obligations and expansion of existing banking relationships corroborate the issuer’s integration claims.","durability":"Multiyear commitments and recurring demand support persistence beyond a single transaction. Migration costs and renewal rates are not quantified, limiting confidence in longer-term durability.","risks":"Alternative systems, lower-cost information and AI could reduce dependence. Banking growth partly reflects revenue recognition timing, and the KYC retention description is an issuer assertion without a disclosed retention rate.","invalidation":"Persistent contraction in organic recurring revenue and ARR, accompanied by customer migration or declining renewals attributable to substitutable offerings, would invalidate the switching-cost assessment.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7"],"counterEvidenceIds":["e10","e11"]},{"mechanism":"intangible_assets","claim":"MA’s proprietary company and credit data, historical depth and associated analytics support differentiated products. Continued demand for data applications and ratings feeds corroborates commercial usefulness, while annual price increases demonstrate some willingness to pay for Moody’s services.","durability":"Historical data and intellectual-property safeguards can preserve differentiation, but the claimed database leadership is issuer-described and comparative data coverage is absent. The evidence supports a current advantage more clearly than an exceptional long-term barrier.","risks":"Some underlying technology and information are broadly available. Disclosure requirements can make paid information free, and competitive pricing pressure has intensified. AI-driven commoditization is a potential risk rather than demonstrated displacement.","invalidation":"Evidence that customers replace proprietary datasets and analytics with comparable cheaper alternatives, together with sustained pricing concessions and weakening organic demand, would undermine this advantage.","competitors":[],"evidenceIds":["e1","e8","e9","e12","e13"],"counterEvidenceIds":["e10","e11","e14","e15"]}],"evidence":[{"id":"e1","sourceId":"filing-2","location":"Note 1, description of MA businesses and embedded regulated workflows","excerpt":"MA comprises three interconnected businesses: i) Research & Insights, which provides credit research, economic analysis and scenario modeling used in investment, risk, and regulatory decisions; ii) Data & Information, which is powered by the world's largest database on companies and credit and serves as a critical input to financial analysis and AI model development/risk assessment; and iii) Decision Solutions, a set of cloud-based platforms embedding Moody's data and analytics directly into regulated banking, insurance, and KYC workflows."},{"id":"e2","sourceId":"filing-2","location":"Note 1, customer integration, subscriptions and proprietary data assertions","excerpt":"Together, these businesses benefit from deep customer integration, long-term subscription structures, and data assets that are proprietary in sourcing, breadth, and historical depth."},{"id":"e3","sourceId":"filing-2","location":"Revenue note, MA remaining performance obligations and signed multiyear arrangements","excerpt":"Remaining performance obligation Remaining performance obligations in the MA segment include both amounts recorded as deferred revenue on the balance sheet as of June 30, 2026 as well as amounts not yet invoiced to customers as of June 30, 2026, largely reflecting future revenue related to signed multi-year arrangements for hosted and installed subscription-based products."},{"id":"e4","sourceId":"filing-2","location":"Revenue note, MA remaining performance obligations at June 30, 2026","excerpt":"As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $4.6 billion."},{"id":"e5","sourceId":"filing-2","location":"Second-quarter MA results, recurring revenue growth","excerpt":"–Recurring revenue growth and organic constant currency recurring revenue(1) growth was 7% and 9%, respectively."},{"id":"e6","sourceId":"filing-2","location":"Second-quarter Decision Solutions results, insurance demand and KYC retention","excerpt":"The most notable drivers of the growth are as follows: –Insurance revenue grew 9% –recurring revenue growth of 11% was primarily attributable to continued demand for subscription-based revenue for catastrophe modeling tools –ARR(2) grew 9% reflecting the continued demand for subscription-based catastrophe models –KYC revenue grew 13% –recurring revenue growth of 12% reflects continued demand and strong customer retention for KYC solutions, including expanded compliance data use cases, coupled with a favorable impact from foreign currency translation –Constant currency revenue(1) growth and constant currency recurring revenue(1) growth in KYC were 11% and 10%, respectively –ARR(2) grew 13%, reflecting the aforementioned strong demand for KYC solutions –Banking revenue declined 14%, primarily reflecting the impact of both the MA Learning Solutions divestiture in the fourth quarter of 2025 and the divestiture of MA Regulatory Solutions in the second quarter of 2026."},{"id":"e7","sourceId":"filing-2","location":"Second-quarter banking results, existing customer expansion and recognition timing","excerpt":"–Organic constant currency recurring revenue(1) grew 22%, reflecting: –the expansion of existing customer relationships to cloud-based subscription banking offerings that enable customers' lending, risk management and finance workflows; and –an increase resulting from the timing of revenue recognition for installed software subscriptions."},{"id":"e8","sourceId":"filing-2","location":"Six-month results, revenue growth, product demand and operating expenses","excerpt":"Six Months Ended June 30, Financial measure: 2026 2025 % Change Favorable (Unfavorable) Insight and Key Drivers of Change Compared to Prior Year Moody's total revenue $ 4,264 $ 3,822 12 % — reflects revenue growth in both segments MA external revenue $ 1,851 $ 1,747 6 % — sustained demand for insurance offerings and cloud-based KYC and banking solutions within Decision Solutions; partially offset by — the impacts of the MA Learning Solutions and MA Regulatory Solutions divestitures — continued demand for ratings data feeds, credit research product offerings and company data applications — Organic constant currency revenue(1) growth was 7%, and ARR(2) grew 9% MIS external revenue $ 2,413 $ 2,075 16 % — strong CFG issuance activity, driven by: — investment-grade issuance related to continued AI-related financing by hyperscalers; and — higher leveraged finance issuance, primarily in the U.S., supported by strong investor demand and tight credit spreads; and — strong Project and Infrastructure Finance issuance activity related to data centers and broader build-out of technology infrastructure Total operating and SG&A expenses $ 1,989 $ 1,862 (7 %) — a reserve recorded for an international non-income tax obligation; — higher incentive compensation which aligns with operational performance relative to targets; — an increase in costs to support operating growth; and — unfavorable foreign exchange impacts Depreciation and amortization $ 248 $ 233 (6 %) — higher amortization of internally developed software, primarily related to the development of MA cloud-based solutions Restructuring $ 59 $ 60 2 % — relates to the Company's restructuring programs."},{"id":"e9","sourceId":"filing-1","location":"Intellectual property, legal and contractual safeguards","excerpt":"The Company considers its intellectual property to be proprietary, and Moody’s relies on a combination of copyright, trademark, trade secret, patent, non-disclosure and other contractual and technological safeguards for protection."},{"id":"e10","sourceId":"filing-1","location":"Competition risk, intensified pricing pressure and alternative systems","excerpt":"Competitive pricing pressures have intensified, which may result in customers’ use of free or lower-cost information that is increasingly becoming available from alternative sources or their development of alternative, proprietary systems for assessing credit risk that replace the products currently purchased from Moody’s."},{"id":"e11","sourceId":"filing-1","location":"Competition risk, potential AI effects on prices and information access","excerpt":"In addition, the emergence of Gen AI and other technologies may further intensify these pressures, as the Company's competitors may use these tools to deliver solutions at lower prices, or these tools may be used in a way that significantly increases access to publicly available information."},{"id":"e12","sourceId":"filing-1","location":"2025 CFG results, recurring revenue and annual price increases","excerpt":"Recurring revenue increased $38 million, primarily reflecting the impact of annual price increases and higher monitored credits."},{"id":"e13","sourceId":"filing-2","location":"Six-month FIG results, recurring revenue and annual price increases","excerpt":"Recurring revenue increased $11 million, primarily reflecting the impact of annual price increases and higher monitored credits."},{"id":"e14","sourceId":"filing-1","location":"Intellectual property discussion, availability of technology and intellectual property inputs","excerpt":"Most of such technology and intellectual property is available from a variety of sources."},{"id":"e15","sourceId":"filing-1","location":"Intellectual property risk, mandatory publication of paid information","excerpt":"From time to time, laws are passed that require publication of certain information, in some cases at no cost, that the Company considers to be its intellectual property and that it currently sells or licenses for a fee, which could result in lost revenue."},{"id":"e16","sourceId":"filing-2","location":"Forward-looking risk discussion, EU requirements governing service pricing","excerpt":"legislation modifying the pleading standards and EU regulations modifying the liability standards, applicable to CRAs in a manner adverse to CRAs; –provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; –uncertainty regarding the future relationship between the U.S."},{"id":"e17","sourceId":"filing-2","location":"Non-GAAP reconciliation, GAAP operating income and operating margins","excerpt":"Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating income $ 1,046 $ 818 $ 1,968 $ 1,664 Adjustments: Depreciation and amortization 126 120 248 233 Restructuring 32 27 59 60 Reserve for international non-income tax obligation 2 — 36 — Duplicate Rent 2 — 2 — Charges related to asset abandonment — 1 — 3 Adjusted Operating Income $ 1,208 $ 966 $ 2,313 $ 1,960 Operating margin 47.9 % 43.1 % 46.2 % 43.5 % Adjusted Operating Margin 55.3 % 50.9 % 54.2 % 51.3 % Adjusted Net Income and Adjusted Diluted EPS attributable to Moody's common shareholders: The Company presents Adjusted Net Income and Adjusted Diluted EPS because management deems these metrics to be useful measures to provide additional perspective on Moody’s operating performance."},{"id":"e18","sourceId":"filing-1","location":"Liquidity, 2025 and 2024 operating cash flow and capital additions","excerpt":"Below is a reconciliation of the Company’s net cash flows from operating activities to Free Cash Flow: Year ended December 31, 2025 2024 Net cash provided by operating activities $ 2,901 $ 2,838 Capital additions (326) (317) Free Cash Flow $ 2,575 $ 2,521 Net cash provided by (used in) investing activities $ 2 $ (1,056) Net cash used in financing activities $ (3,063) $ (1,446) Organic Constant Currency Revenue Growth: The Company presents organic constant currency revenue growth as its non-GAAP measure of revenue growth."},{"id":"e19","sourceId":"filing-2","location":"Liquidity, six-month operating cash flow and free cash flow","excerpt":"Cash Flow The following is a summary of the changes in the Company’s cash flows followed by a brief discussion of these changes: Six Months Ended June 30, $ Change Favorable (Unfavorable) 2026 2025 Net cash provided by operating activities $ 1,718 $ 1,300 $ 418 Net cash provided by investing activities $ 21 $ 98 $ (77) Net cash used in financing activities $ (2,629) $ (1,780) $ (849) Free Cash Flow (1) $ 1,532 $ 1,140 $ 392 (1) Free Cash Flow is a non-GAAP measure and is defined by the Company as net cash provided by operating activities minus cash paid for capital expenditures."},{"id":"e20","sourceId":"filing-2","location":"Six-month shareholders’ equity statement, repurchases, dividends and stock compensation","excerpt":"12 Table of Contents MOODY'S CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Amounts in millions, except per share data) Shareholders of Moody's Corporation Common Stock Capital Surplus Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Total Moody's Shareholders' Equity Non- Controlling Interests Total Shareholders' Equity Shares Amount Shares Amount Balance at December 31, 2025 342.9 $ 3 $ 1,676 $ 17,853 (165.4) $ (14,978) $ (500) $ 4,054 $ 151 $ 4,205 Net income 1,539 1,539 1 1,540 Dividends ($2.06 per share) (365) (365) (8) (373) Stock-based compensation 120 120 120 Shares issued for stock-based compensation plans at average cost, net (43) 0.4 (42) (85) (85) Noncontrolling interest resulting from majority acquisition — 6 6 Treasury shares repurchased, inclusive of excise tax of $19 million — (4.7) (2,184) (2,184) (2,184) Currency translation adjustment, net of net investment hedge activity (net of tax of $34 million) (59) (59) (9) (68) Net actuarial gains (net of tax of $2 million) 5 5 5 Amortization of actuarial gains and prior service credits (1) (1) (1) Amortization of losses on cash flow hedges 1 1 1 Balance at June 30, 2026 342.9 $ 3 $ 1,753 $ 19,027 (169.7) $ (17,204) $ (554) $ 3,025 $ 141 $ 3,166 The accompanying notes are an integral part of the consolidated financial statements."},{"id":"e21","sourceId":"filing-2","location":"Investing cash flows, acquisition spending and business divestiture proceeds","excerpt":"Net cash provided by investing activities The $77 million decrease in cash provided by investing activities in the six months ended June 30, 2026 compared to the same period in 2025 was primarily due to: –a $473 million decrease in sales and maturities of investments primarily due to the maturity of certificates of deposit in the first quarter of 2025, of which the proceeds were used to repay notes payable in the prior year; partially offset by: –cash received from the divestiture of businesses (net of cash transferred to the purchaser) of $200 million, primarily relating to the sale of the MA Regulatory Solutions business in the second quarter of 2026; and –lower cash paid for acquisitions (net of cash acquired) of $200 million, primarily due to amounts paid for the acquisition of CAPE Analytics in the first quarter of 2025."},{"id":"e22","sourceId":"filing-1","location":"Other operating information, realized asset abandonment expenses","excerpt":"The following table summarizes the expenses related to asset abandonment included in the accompanying consolidated statements of operations: Year ended December 31, Cumulative expense incurred 2025 2024 Severance charges $ 3 $ 12 $ 15 Incremental amortization — 31 31 Total $ 3 $ 43 $ 46 120 MOODY'S 2025 10-K Table of Contents ITEM 9."},{"id":"e23","sourceId":"filing-3","location":"Compensation philosophy, implemented cash incentives and long-term award structure","excerpt":"We implement these pillars of our philosophy by: •awarding the NEOs annual cash incentive compensation that is based on the Company’s performance against financial objectives specified at the beginning of the performance year and an evaluation of individual, qualitative and largely operational (non-financial) accomplishments and performance during that year; •using Company performance as the primary factor in determining the annual cash incentive compensation payouts; •establishing the targeted annual long-term equity award mix for NEOs, generally comprised of 20% options, 20% RSUs and 60% performance shares, in order to tie realizable compensation directly to pre-established performance goals and future increases in stockholder value; •providing long-term equity-based incentives in the form of (i) performance shares that are earned following the completion of a three-year performance period only if certain performance goals are met or exceeded, (ii) stock options that deliver value to the executives only if our share price increases from the date the awards are granted and (iii) RSUs that help to retain executives over a four-year vesting period and increase or decrease in value with share price appreciation or depreciation; and •establishing a range of performance goals for performance shares, which for the 2025-2027 performance shares included MCO EPS for Compensation Purposes, MIS Ratings Performance and MA Cumulative Revenue for all performance share recipients."},{"id":"e24","sourceId":"filing-3","location":"Performance share metrics, compensation adjustments for unusual items","excerpt":"MCO EPS for Compensation Purposes will be adjusted to exclude the net impact of restructuring charges and other material non-recurring or unusual items, including material acquisitions or dispositions, and MA Cumulative Revenue will be adjusted for material acquisitions or dispositions."},{"id":"e25","sourceId":"filing-3","location":"Governance highlights, independent committees, ownership requirements and clawback policy","excerpt":"Moody’s Corporation 2 2026 Proxy Statement CORPORATE GOVERNANCE HIGHLIGHTS Board Independence Nine of the ten Board nominees are independent Fully independent Audit, Governance & Nominating, and Compensation & Human Resources Committees Regular executive sessions of independent directors Executive Compensation Governance Practices Robust stock ownership guidelines, with retention requirements, for directors and executive officers Comprehensive clawback policy, applicable to all cash incentive and both time- and performance-based equity-based awards Minimum one-year vesting period generally applicable to incentive equity awards Anti-hedging and anti-pledging policy Other Board Practices All directors elected annually by majority vote (in uncontested elections) Annual evaluations of the Board, committees and individual directors Board composition reflects an array of backgrounds and experiences and includes a range of tenures to balance fresh perspectives with in-depth knowledge about the Company Moody’s Corporation 3 2026 Proxy Statement Committees of the Board Director Nominee Independent Audit Governance & Nominating Compensation & Human Resources Executive Jorge A."},{"id":"e26","sourceId":"filing-3","location":"Governance, recurring independent director executive sessions","excerpt":"EXECUTIVE SESSIONS The independent directors routinely meet in executive session at regularly scheduled Board meetings."},{"id":"e27","sourceId":"filing-3","location":"Governance, independent chairman and executive session authority","excerpt":"Vincent A. Forlenza, the independent Chairman of the Board, establishes the agenda for and presides at these sessions and has the authority to call additional sessions as appropriate."},{"id":"e28","sourceId":"filing-1","location":"Controls and procedures, management conclusion on disclosure control effectiveness","excerpt":"Based on such evaluation, such officers have concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the communication to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure."},{"id":"e29","sourceId":"filing-2","location":"Operating cash flows, operating income, working capital and lower incentive payments","excerpt":"Net cash provided by operating activities Net cash flows from operating activities for the six months ended June 30, 2026 increased by $418 million compared to the same period in 2025, with the most notable drivers reflecting: –growth in operating income of $304 million coupled with various changes in working capital; and –approximately $70 million in lower incentive compensation payments in 2026 (based on full-year 2025 financial and operating results) compared to payments made in the prior year (based on full-year 2024 financial and operating results)."},{"id":"e30","sourceId":"filing-1","location":"2025 revenue reconciliation, organic constant currency and recurring revenue growth","excerpt":"Below is a reconciliation of the Company's reported revenue and growth rates to its organic constant currency revenue growth measures: MOODY'S 2025 10-K 61 Table of Contents Year ended December 31, Amounts in millions 2025 2024 Change Growth MCO revenue $ 7,718 $ 7,088 $ 630 9% FX impact (68) — (68) Inorganic revenue from acquisitions (57) — (57) Divestitures — (5) 5 Organic constant currency MCO revenue $ 7,593 $ 7,083 $ 510 7% MA revenue $ 3,599 $ 3,295 $ 304 9% FX impact (39) — (39) Inorganic revenue from acquisitions (49) — (49) Divestitures — (5) 5 Organic constant currency MA revenue $ 3,511 $ 3,290 $ 221 7% Decision Solutions revenue $ 1,692 $ 1,516 $ 176 12% FX impact (13) — (13) Inorganic revenue from acquisitions (49) — (49) Divestitures — (5) 5 Organic constant currency Decision Solutions revenue $ 1,630 $ 1,511 $ 119 8% Banking revenue $ 569 $ 551 $ 18 3% FX impact (2) — (2) Inorganic revenue from acquisitions (9) — (9) Divestitures — (5) 5 Organic constant currency Banking revenue $ 558 $ 546 $ 12 2% Insurance revenue $ 685 $ 598 $ 87 15% FX impact (2) — (2) Inorganic revenue from acquisitions (40) — (40) Organic constant currency Insurance revenue $ 643 $ 598 $ 45 8% KYC revenue $ 438 $ 367 $ 71 19% FX impact (9) — (9) Organic constant currency KYC revenue $ 429 $ 367 $ 62 17% Data and Information revenue $ 912 $ 853 $ 59 7% FX impact (17) — (17) Constant currency Data and Information revenue $ 895 $ 853 $ 42 5% MA recurring revenue $ 3,462 $ 3,125 $ 337 11% FX impact (40) — (40) Inorganic revenue from acquisitions (47) — (47) Organic constant currency MA recurring revenue $ 3,375 $ 3,125 $ 250 8% Decision Solutions recurring revenue $ 1,575 $ 1,370 $ 205 15% FX impact (14) — (14) Inorganic revenue from acquisitions (47) — (47) Organic constant currency Decision Solutions recurring revenue $ 1,514 $ 1,370 $ 144 0 11% 62 MOODY'S 2025 10-K Table of Contents Year ended December 31, 2025 2024 Change Growth Banking recurring revenue $ 476 $ 438 $ 38 9% FX impact (3) — (3) Inorganic revenue from acquisitions (8) — (8) Organic constant currency Banking recurring revenue $ 465 $ 438 $ 27 6% Insurance recurring revenue $ 664 $ 572 $ 92 16% FX impact (2) — (2) Inorganic revenue from acquisitions (39) — (39) Organic constant currency Insurance recurring revenue $ 623 $ 572 $ 51 9% KYC recurring revenue $ 435 $ 360 $ 75 21% FX impact $ (9) — (9) Organic constant currency KYC recurring revenue $ 426 $ 360 $ 66 18% Key Performance Metrics: The Company presents ARR on an organic constant currency basis for its MA business as a supplemental performance metric to provide additional insight on the estimated value of MA's recurring revenue contracts at a given point in time."}],"changes":["No comparable previous version was supplied."],"limitations":["Only supplied passages were used. Source dates are filing dates: February 18, July 23 and March 4, 2026; operating evidence extends through June 30, 2026.","No product-specific named competitors are established. The proxy names compensation peers described collectively as competing for business and executive talent, which does not establish relevant product-market coverage; competitor arrays are therefore empty.","Data leadership, customer integration and strong KYC retention are issuer descriptions. Contractual obligations and reported operating results provide corroboration, but no quantified switching costs, comparative dataset assessment or retention rate is supplied.","The passages do not establish ratings market shares, investor acceptance barriers or regulatory exclusivity. Ratings issuance growth and high margins alone cannot establish a wide moat.","Pricing contributions are not separated from monitored-credit growth. MA-specific realized pricing, discounting, cancellation rights and repricing clauses are missing.","The proxy supplies actual incentive structures and governance practices, but the supplied ownership table is fragmented and does not establish compliance with ownership requirements. Board nominee independence is not treated as proof of subsequent election.","The available period is too short to demonstrate resilience across a severe downturn. Capital allocation returns, acquisition economics and comprehensive financing terms are not established."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Embedded regulated workflows and proprietary historical data are supported by signed multiyear subscriptions and existing customer expansion. This demonstrates a meaningful current advantage, without proving comparative dominance.","evidenceIds":["e1","e2","e3","e4","e7"]},{"criterion":"durability","grade":2,"rationale":"Multiyear contractual obligations and recurring growth support persistence. Competitive substitution and limited historical coverage leave long-term durability mixed rather than exceptional.","evidenceIds":["e3","e4","e5","e10","e30"]},{"criterion":"customer_dependency","grade":3,"rationale":"Workflow integration, expansion of existing banking relationships and continued subscription demand demonstrate meaningful dependence. Retention is assessed partly from indirect operating evidence; no company-wide retention rate is supplied.","evidenceIds":["e1","e6","e7"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Organic recurring growth and realized price increases coexist with disclosed intensified pricing pressure. AI displacement remains a possibility, while resilience through a major technological or credit-cycle shock is untested here.","evidenceIds":["e5","e10","e11","e12","e13"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Annual price increases contributed to recurring revenue growth in the 2025 CFG and 2026 FIG disclosures. These are realized outcomes, although price effects are combined with monitored-credit growth and cannot be generalized to every product.","evidenceIds":["e12","e13"]},{"criterion":"retention","grade":3,"rationale":"Continued subscription demand, existing customer expansion and recurring revenue growth support strong repeat demand. KYC retention is described favorably by management but is unquantified; broader retention is inferred indirectly.","evidenceIds":["e5","e6","e7","e30"]},{"criterion":"margin_resilience","grade":3,"rationale":"Six-month GAAP operating margin rose from 43.5% to 46.2%, with revenue growing faster than operating and SG&A expenses. This demonstrates recent resilience, although favorable ratings issuance conditions contributed and downturn resilience remains unproven.","evidenceIds":["e8","e17"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Implemented annual price increases demonstrate some ability to reset charges. Multiyear subscriptions and EU pricing requirements constrain the inference of broad discretion; detailed repricing and cancellation provisions are absent.","evidenceIds":["e3","e12","e13","e16"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Cash generation after capital additions is substantial, and acquisitions and divestitures show active allocation. However, first-half repurchases of $2.184 billion exceeded $1.532 billion of free cash flow before dividends, and realized abandonment charges temper the record. The passages do not establish buyback value or acquisition returns.","evidenceIds":["e18","e19","e20","e21","e22"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Implemented compensation combines three-year performance shares, stock options and multiyear RSUs, with ownership, clawback and anti-hedging requirements. Adjusted compensation metrics introduce discretion, and compliance with ownership requirements is not demonstrated.","evidenceIds":["e23","e24","e25"]},{"criterion":"execution","grade":3,"rationale":"Organic growth across 2025 and first-half 2026, customer expansion, higher operating income and stronger cash generation support strong recent execution. Assessment uses operating outcomes rather than independently verified strategic milestones; issuance conditions, recognition timing and lower incentive payments contributed.","evidenceIds":["e7","e8","e17","e19","e29","e30"]},{"criterion":"governance","grade":3,"rationale":"Disclosed independent committees, recurring independent director sessions, an independent chairman and compensation safeguards support strong governance arrangements. Effective disclosure controls are management’s conclusion, and these disclosures do not establish exceptional oversight outcomes.","evidenceIds":["e25","e26","e27","e28"]}]}],"qualityPolicy":"quality-scores-2","basisHash":"f4c5c4f31b958ac744ab0e9cfda76c94eab5b9d561a3a954c700b05e17471fc9","updatedAt":"2026-10-17T21:38:25.386Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/1059556/000162828026009136/mco-20251231.htm","publishedAt":"2026-02-18","sha256":"4b06fdf66f89c82c6d2654fd5b4a1429a138381bcbecedf593c635752e7cd15a","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/1059556/000162828026049398/mco-20260630.htm","publishedAt":"2026-07-23","sha256":"ff68d128ec84ddfd92003e2f8d39f1e85fe3d033a5004c320a4203ca69ef0da7","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/1059556/000105955626000019/mco-20260304.htm","publishedAt":"2026-03-04","sha256":"e1eca214f7bab96880ef843aa571f2411265d85a700575ed6d026d0ab894a1ba","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:96ec4ceddddb4d72cbe1c4821f977a4bc9a9f873427f8c242147016eaddc3607","usage":{"input_tokens":51960,"cached_input_tokens":0,"cache_write_input_tokens":0,"output_tokens":3592,"reasoning_output_tokens":114},"basisSupplement":{"previousHash":"34fe78176ceb5aa91f25cc828dba28ab913ffb5ce489bb813ae69962b6d324a3","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":73.67320681891283,"operating_margin":45.73817947893213,"roic":32.40497730046526,"fcf_margin":30.009649404953358,"sbc_revenue":2.814409778063686},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","interest_coverage":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":70.50109729334308,"operating_margin":34.43672275054865,"roic":17.472203763432145,"fcf_margin":21.78127286027798,"sbc_revenue":3.09070958302853},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. 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