S&P Global (NYSE:SPGI) reported third-quarter revenue growth of 7% and raised its full-year outlook, citing accelerating performance in its Indices, Energy and Market Intelligence businesses, continued strength in credit markets and growing demand for AI-ready data products.
The company also announced a strategic review of Capital IQ and associated data businesses within its Market Intelligence division, including a potential separation. President and Chief Executive Officer Martina Cheung said the review is intended to sharpen S&P Global’s focus on markets where it holds leading positions: credit, equities and commodities.
“The strategic review we announced this morning is about putting our investment where we are strongest,” Cheung said. She added that the company views itself as a “trust anchor” in those markets through its benchmarks, data, analytics and workflow products.
Quarterly Results and Updated Outlook
Chief Financial Officer Eric Aboaf said third-quarter revenue rose 7% on both an organic constant-currency and reported basis. Adjusted expenses increased 5%, as investments in growth initiatives were partly funded through productivity measures, while total headcount was flat year over year.
Adjusted operating margin expanded 60 basis points to 53.5%, while adjusted operating profit increased 8% and adjusted EPS rose 9%. Aboaf said earnings-per-share growth was supported by more than $6 billion in share repurchases during the past 12 months, including $2.6 billion launched in the third quarter.
S&P Global has repurchased $4 billion of shares year to date and expects to complete more than $7 billion in buybacks by year-end. The company said it expects to issue about $2 billion of debt at prevailing market rates to support its expanded repurchase plans.
For the full year, S&P Global raised its organic constant-currency revenue-growth outlook to 7.5% to 8.5%. It now expects adjusted operating-margin expansion of 75 to 100 basis points and adjusted EPS of $17.70 to $17.95.
- Ratings organic constant-currency revenue growth is expected to be 6.5% to 8%.
- Indices growth is expected to be 17% to 18.5%.
- Energy growth guidance remains 4.5% to 6%.
- Market Intelligence growth guidance remains 5.5% to 7%, with results expected to be slightly above the midpoint of that range.
Ratings Issuance Remains Strong
Ratings revenue increased 2% in the third quarter, moderating from the first half against tougher comparisons. Billed issuance increased 8%, while transaction revenue rose 1%. Investment-grade issuance climbed 28%, helped by several large merger-and-acquisition and hyperscaler transactions.
Cheung said the first three quarters of the year were the strongest on record for billed issuance. Hyperscaler issuance totaled about $240 billion through the first nine months, and S&P Global continues to expect full-year hyperscaler issuance of $250 billion to $300 billion.
Excluding hyperscaler issuance, third-quarter investment-grade issuance would have increased about 15%, while total billed issuance would have been up in the low single digits, according to the company. S&P Global now expects M&A issuance to grow 20% to 30% for the year, reflecting strength in the third quarter.
Aboaf noted that the shift toward investment-grade issuance from high yield and bank loans created a wider-than-usual gap between billed issuance growth and transaction-revenue growth during the quarter. He said issuance and revenue growth are expected to more closely align over time.
Indices, Energy and Market Intelligence Accelerate
S&P Dow Jones Indices posted its 14th consecutive quarter of record revenue, with revenue up 20%. Asset-linked fee revenue increased 24%, supported by market appreciation and net inflows. ETF assets under management tied to the company’s indexes reached a record $6.5 trillion, while ETF AUM rose 26% year over year.
Exchange-traded derivatives revenue increased 19%, driven by SPX volumes. The company recently extended its exclusive S&P 500 options licensing agreement with Cboe Global Markets through 2051. Aboaf said the extension will not affect 2026 results but is expected to add a couple percentage points of incremental total index revenue growth in 2027.
Energy revenue rebounded 6%, including 7% growth at Platts, where price assessments were a key contributor. The segment’s adjusted operating margin expanded 190 basis points to 48.1%. Management said the global trading services business stabilized during the quarter as customers in the Middle East adapted to the operating environment.
Market Intelligence revenue rose 7%, with subscription revenue up 6%, or 7% organically. Kensho Data and Platforms revenue increased 10%, or 6% organically, while Enterprise Solutions organic revenue rose 8%. Aboaf said Market Intelligence’s annual contract value growth was about 6.5%, up from the 6% range.
AI-related products contributed about 50 basis points of revenue growth in Energy and about 50 basis points in Kensho Data and Platforms. Cheung said customers using S&P Global’s AI offerings are increasing spending faster than non-AI customers, with AI customers in Market Intelligence growing annual contract value at 1.8 times the rate of non-AI customers and Energy AI customers growing at roughly three times the rate.
Capital IQ Review and AI Strategy
The strategic review covers Capital IQ and associated data businesses, including financials, SNL and Visible Alpha. S&P Global expects to retain RatingsDirect, RatingsXpress and Enterprise Solutions. Cheung said the review is still in its early stages and that the precise perimeter remains under evaluation.
The businesses under consideration serve more than 15,000 clients and more than 355,000 users, according to the company. Management said separate ownership could provide dedicated investment and focus for the businesses to pursue growth and innovation, while a more focused S&P Global could prioritize investment in its core markets.
Aboaf said S&P Global has signed nondisclosure agreements with a number of interested parties and engaged advisers, though he emphasized there is no certainty of an outcome and no definitive timetable. The company expects its earliest meaningful update to come during its February earnings call.
Cheung said S&P Global intends to preserve AI capabilities needed across its remaining operations, including applications in Energy, workflow products, research and analytical processes. She said the company would seek to ensure continuity for customers, employees, contracts and service commitments throughout the review.
About S&P Global (NYSE:SPGI)
S&P Global (NYSE: SPGI) is a global provider of financial information, analytics, benchmarks and credit ratings. Its services are used by investors, corporations, governments and other organizations to evaluate risk, assess markets, support investment decisions and manage business operations.
The company operates through businesses including S&P Global Ratings, which provides credit ratings and related research; S&P Global Market Intelligence, which delivers data, research and analytics on companies, markets and industries; and S&P Global Commodity Insights, which supplies information and analysis for energy and commodity markets.
