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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company is organized into two operating segments: MA and MIS and accordingly, the Company reports in two reportable segments: MA and MIS.
The MA segment develops a wide range of products and services that support the risk management activities of institutional participants in global financial markets. The MA segment consists of three LOBs - DS, R&I, and D&I.
The MIS segment consists of five LOBs. The CFG, FIG, PPIF and SFG LOBs generate revenue principally from fees for the assignment and ongoing monitoring of credit ratings on debt obligations and the entities that issue such obligations in markets worldwide. The MIS Other LOB primarily consists of financial instruments pricing services in the Asia-Pacific region, ICRA non-ratings revenue and revenue from providing professional services.
Revenue for MA and expenses for MIS include an intersegment fee charged to MIS from MA for certain MA products and services utilized in MIS’s ratings process. Additionally, revenue for MIS and expenses for MA include intersegment fees charged to MA for the rights to use and distribute content, data and products developed by MIS. These intersegment fees are generally based on the market value of the products and services being transferred between the segments.
Overhead expenses include costs such as rent and occupancy, information technology and support staff such as finance, human resources and legal. Such costs and corporate expenses that exclusively benefit one segment are fully charged to that segment.
For overhead costs and corporate expenses that benefit both segments, costs are generally allocated to each segment based on historical and forecasted current year revenue amounts.
“Eliminations” in the following table represent intersegment revenue/expense. Moody’s does not report the Company’s assets by reportable segment, as this metric is not used by the chief operating decision maker to allocate resources to the segments.
Financial Information by Segment
The table below presents revenue, significant expenses regularly provided to the CODM and Adjusted Operating Income by reportable segment. The CODM, identified as the Company's CEO, utilizes the Adjusted Operating Income measure to assess the profitability of the Company and each of its reportable segments each quarter. Adjusted Operating Income is also used in our budgeting and forecasting processes, enabling the allocation of capital resources across the Company's strategic initiatives.
Year Ended December 31,
20252024
MA
MIS
EliminationsConsolidated
MA
MIS
EliminationsConsolidated
Total external revenue$3,599 $4,119 $— $7,718 $3,295 $3,793 $— $7,088 
Intersegment revenue12 198 (210)— 13 193 (206)— 
Revenue3,611 4,317 (210)7,718 3,308 3,986 (206)7,088 
Compensation expense
1,438 1,136 — 2,574 1,370 1,169 — 2,539 
Non-compensation expense
779 423 — 1,202 731 410 — 1,141 
Intersegment expense
198 12 (210)— 193 13 (206)— 
Operating, SG&A2,415 1,571 (210)3,776 2,294 1,592 (206)3,680 
Adjusted Operating Income1,196 2,746 — 3,942 1,014 2,394 — 3,408 
Add:
Depreciation and amortization393 87 — 480 353 78 — 431 
Restructuring77 31 — 108 42 17 — 59 
Charges related to asset abandonment3 — — 3 43 — — 43 
Operating Income$3,351 $2,875 
Non-operating expense, net
$(221)$(176)
Income before provision for income taxes$3,130 $2,699 
Year Ended December 31, 2023
MAMISEliminationsConsolidated
Total external revenue$3,056 $2,860 $— $5,916 
Intersegment revenue13 186 (199)— 
Revenue3,069 3,046 (199)5,916 
Compensation expense1,238 1,003 — 2,241 
Non-compensation expense708 370 — 1,078 
Intersegment expense186 13 (199)— 
Operating, SG&A2,132 1,386 (199)3,319 
Adjusted Operating Income937 1,660 — 2,597 
Add:
Depreciation and amortization298 75 — 373 
Restructuring59 28 — 87 
Operating income$2,137 
Non-operating expense, net
$(202)
Income before provision for income taxes$1,935 
The table below shows cumulative restructuring expense incurred through December 31, 2025 by reportable segment.
MAMISTotal
2022 - 2023 Geolocation Restructuring Program$116 $98 $214 
Strategic and Operational Efficiency Restructuring Program
$111 $42 $153 
The total costs expected to be incurred related to the Strategic and Operational Efficiency Restructuring Program are $150 million to $165 million for the MA segment and $75 million to $85 million for the MIS segment, which include allocations of charges associated with corporate functions.
The restructuring programs are more fully discussed in Note 9.
CONSOLIDATED REVENUE AND LONG-LIVED ASSETS INFORMATION BY GEOGRAPHIC AREA
Year Ended December 31,
202520242023
Revenue:
U.S.$4,171 $3,836 $3,071 
Non-U.S.:
EMEA2,376 2,174 1,886 
Asia-Pacific699 629 570 
Americas472 449 389 
Total Non-U.S.3,547 3,252 2,845 
Total$7,718 $7,088 $5,916 
Long-lived assets at December 31:
U.S.$4,516 $4,395 $4,323 
Non-U.S.4,722 4,361 4,562 
Total$9,238 $8,756 $8,885