Financial Technology Services

restructuring affecting expense

“899 859 5 % Total 2,079 1,924 8 % Expenses: Operating 531 491 (8 %) SG&A 477 439 (9 %) Depreciation and amortization 122 113 (8 %) Restructuring 27 33 18 % Charges related to asset abandonment — 2 100 % Total 1,157 1,078 (7 %) Operating income $ 922 $ 846 9 % Adjusted Operating Income (1) $ 1,105 $ 994 11 % Interest expense, net $ (66) $ (61) (8 %) Other non-operating income, net 14 19 (26 %) Non-operating (expense) income, net $ (52) $ (42) (24 %) Net income attributable to Moody's $ 661 $ 625 6 % Diluted weighted average shares outstanding 177.3 180.7 2 % Diluted EPS attributable to Moody's common shareholders $ 3.73 $ 3.46 8 % Adjusted Diluted EPS (1) $ 4.33 $ 3.83 13 % Operating margin 44.3 % 44.0 % Adjusted Operating Margin (1) 53.2 % 51.7 % ETR 24.0 % 22.3 % The table below shows Moody’s global staffing by geographic area: March 31, Change 2026 2025 % MA U.S.”

MCO 10-Q

credit / rates affecting interest expense

“Interest Expense, net ⇑ $5 million Other non-operating income ⇓ $5 million Interest expense increase is primarily due to: Decrease in income is primarily due to: — interest related to a reserve for an international non-income tax obligation of $12 million; and — accrued penalties related to a reserve for an international non-income tax obligation of $7 million — a decrease in interest income of $12 million, reflecting lower cash balances resulting from higher share repurchase activity coupled with lower interest rates; partially offset by — lower interest expense on borrowings of $17 million primarily related to the maturity of both debt and related interest rate swaps 42 Table of Contents ETR ⇑ 170 BPS The ETR was higher than the prior year primarily reflecting a decrease in Excess Tax Benefits related to stock-based compensation.”

MCO 10-Q

credit / rates

“The 2024 Credit Facility contains certain customary covenants and also contains a financial covenant that requires the Company to maintain a total debt to EBITDA Ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $ 500 million, subject to certain conditions as set forth in the 2024 Credit Facility.”

MCO 10-K