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    SPGI
    Earnings call· Mar 2026(Q1 FY26)

    S&P Global Q1 FY26 earnings call SPGI

    Apr 28, 2026 Source

    Executive summary

    S&P Global Q1 FY26 — Strong Q1 Performance Driven by Market-Driven Businesses and AI Adoption

    S&P Global delivered strong Q1 FY26 results, with robust revenue growth driven by market-driven businesses and significant AI adoption across its platforms. Despite increased geopolitical uncertainty and volatility in energy and credit markets, the company maintained its full-year revenue and EPS guidance, demonstrating business resilience. Strategic investments in AI and data differentiation are resonating with customers, driving higher engagement and contract value, while disciplined expense management supports margin expansion.

    Highlights

    5

    • Revenue increased 10% year-over-year, or 9% on an organic constant currency basis.

    • Adjusted diluted EPS increased 14% year-over-year in the quarter.

    • Returned $1 billion to shareholders through share repurchases in the quarter.

    • Market Intelligence ACV growth among AI customers is 30% higher than others, and Energy AI customer growth is double.

    • Ratings revenue increased 13% year-over-year, exceeding internal expectations.

    Concerns

    4

    • Geopolitical conflict in Iran has shocked energy markets and supply chains, leading to much higher energy and commodity prices and elevated volatility.

    • Private credit navigated increased scrutiny, wider spreads, and elevated redemptions.

    • Energy division's organic constant currency revenue growth guidance lowered by 1 percentage point to a range of 4.5% to 6% due to the Iran conflict.

    • Bank loan volumes declined high-teens due to a very difficult compare in Q1 2025.

    Guidance & targets

    9
    CategoryTargetConfidence
    Organic constant currency revenue growth
    6% to 8%
    high materiality
    High
    Margin expansion (excluding OSTTRA)
    50 to 75 basis points
    high materiality
    High
    Adjusted EPS
    unchanged
    high materiality
    High
    Organic constant currency revenue growth (Energy division)
    4.5% to 6%
    medium materiality
    Medium
    Equity markets (Indices)
    roughly flat from current levels
    medium materiality
    Medium
    ETD volumes (Indices)
    low double-digit growth year-over-year
    medium materiality
    Medium
    Mobility business separation
    completion of the spin
    high materiality
    High
    Mobility debt offering
    approximately $2 billion
    medium materiality
    High
    Share repurchases
    at least 100% or to roughly $4.5 billion for the year
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Market Intelligence
    Subscription growth included a 50 basis point headwind from revenue recognition timing, expected to reverse in H2. Data Analytics & Insights benefited from 6 percentage points from With Intelligence acquisition. Enterprise Solutions reported growth impacted by divestiture of EDM and thinkFolio.
    Organic constant currency revenue growth: 6%Subscription revenue growth: 6% (reported and organic)Onetime revenue and volume-driven revenue growth: 18%Data Analytics & Insights reported revenue growth: 11%Data Analytics & Insights organic growth: 5%Enterprise Solutions reported revenue growth: 3%Enterprise Solutions organic growth: 14%Credit and Risk Solutions revenue growth: 6%
    		8% growth8%—33.6%
    Ratings
    Growth was strong across both transactional and non-transactional revenue streams. Transactional revenue driven by investment grade, supported by hyperscaler/M&A transactions, partly offset by high-teen decline in bank loan volumes. Non-transactional revenue driven by higher annual fee revenue and CRISIL revenues.
    Transactional revenue growth: 15%Non-transactional revenue growth: 11%Private markets revenues growth: over 25%Issuer credit ratings (ICRs) growth: strongRating Evaluation Services (RES) growth: strong
    		13% growth13%—67.8%
    S&P Global Energy
    Benefited from very strong events revenue (CERAWeek) and a spike in value-driven transactional activity. Sanctions drove a 100 basis point headwind to Energy & Resources and 140 basis points headwind to Price Assessments. Upstream Data and Insights decline driven by absence of a prior year one-time fee.
    Energy & Resources Data & Insights revenue growth: 7%Price Assessments revenue growth: 6%Advisory & Transactional Services revenue growth: 15%Global Trading Services (GTS) growth: close to 30%Upstream Data and Insights revenue decline: 5%
    		7% growth7%—49.3%
    S&P Dow Jones Indices
    Asset-linked fees driven by equity market appreciation and net inflows. Mix shift to lower-priced indices (S&P 500) drove a modest decline in average realized price. ETD driven by strong volumes, particularly in SPX. Data and custom subscriptions posted third consecutive quarter of double-digit growth.
    Revenue associated with asset-linked fees growth: 18%Exchange-Traded Derivatives revenue growth: 18%Data and custom subscriptions revenue growth: 12%
    		17% growth17%—73.8%
    Mobility
    Dealer revenue benefited from momentum in new customer growth at CARFAX and automotiveMastermind. Manufacturing growth partially offset by softness in recalls and OEM marketing related products. Financials & Other benefited from underwriting volumes and commercial momentum.
    Dealer revenue growth: 9%Manufacturing revenue growth: 5%Financials & Other growth: 8%
    		8% growth8%—40%

    Operational metrics

    38
    Organic constant currency revenue growth
    9%YoY
    Q1 FY26

    Enterprise-wide growth.

    Adjusted diluted EPS growth
    14%YoY
    Q1 FY26

    Enterprise-wide growth.

    Margin expansion (trailing 12-month)
    140 basis points
    Q1 FY26

    Enterprise-wide margin expansion.

    Share repurchases
    $1 billion
    Q1 FY26

    Capital returned to shareholders.

    Billed issuance growth
    14%YoY
    Q1 FY26

    Primarily driven by strength in investment grade.

    Investment grade issuance growth
    healthy growth
    Q1 FY26

    Even without hyperscaler issuance, benefiting from large M&A transactions.

    Bank loan volumes decline
    high-teen
    Q1 FY26

    Due to a difficult compare in Q1 2025.

    CERAWeek attendance
    11,000record
    Q1 FY26

    Premier global conference for energy, finance, technology, and geopolitics.

    CERAWeek participating companies
    2,300
    Q1 FY26

    From over 90 countries.

    User queries in Energy platforms ChatAI
    more than doubledQoQ
    Q1 FY26

    Reflects increased customer engagement with AI features.

    Volume of API calls by customers
    more than 5xQoQ
    Q1 FY26

    Volume of data consumed directly via API calls from customers.

    Volume of API calls by customers (Feb to March)
    doubledMoM
    Q1 FY26

    Significant increase in data consumption.

    Market Intelligence ACV growth (AI customers vs others)
    30% higher
    Q1 FY26

    Early indication of economic benefits from AI adoption.

    Energy ACV growth (AI customers vs others)
    double
    Q1 FY26

    Early indication of economic benefits from AI adoption.

    Chief Client Office clients engaged with Kensho Labs
    25%
    Q1 FY26

    Exploring opportunities to leverage technology and data to solve problems.

    Customers interacting with S&P Global data through AI apps
    more than 300
    Q1 FY26

    Under contract or in trial periods for Kensho-LLM-ready APIs.

    Market Intelligence revenue from undifferentiated data
    12%
    Q1 FY26

    Breakdown of Market Intelligence revenue.

    Market Intelligence revenue from Advisory, Consulting and Events
    11%
    Q1 FY26

    Breakdown of Market Intelligence revenue.

    Market Intelligence revenue from workflow tools
    37%
    Q1 FY26

    Breakdown of Market Intelligence revenue, including Capital IQ and Enterprise Solutions.

    Upstream software portfolio revenue
    25% of Upstream revenues
    Q1 FY26

    Portion of the Upstream business being divested.

    Adjusted expenses growth
    8%
    Q1 FY26

    Enterprise-wide expense growth.

    Adjusted operating profit growth
    12%
    Q1 FY26

    Enterprise-wide profit growth.

    Operating margin
    51.8%+100 bps YoY
    Q1 FY26

    Enterprise-wide operating margin.

    Operating margin (excluding OSTTRA)
    +160 basis pointsYoY
    Q1 FY26

    Enterprise-wide operating margin expansion.

    Subscription revenue growth (Market Intelligence)
    6%
    Q1 FY26

    Reported and organic growth.

    Net renewal rates (Market Intelligence)
    up 100 basis points
    Q1 FY26

    Positive trend in customer retention.

    Average realized price (Indices asset-linked fees)
    modest declineYoY
    Q1 FY26

    Due to mix shift towards lower-priced indices like S&P 500 during heightened volatility.

    Gross leverage
    2.3x
    Q1 FY26

    Current trailing 12-month EBITDA leverage.

    Gross leverage (end of year, post-Mobility spin)
    2.4x
    FY26

    Expected increase due to loss of Mobility EBITDA.

    Global GDP growth assumption
    3.2%
    FY26

    Underpins guidance, assumes situation stabilizes by end of Q2.

    US GDP growth assumption
    2.2%
    FY26

    Underpins guidance.

    US CPI growth assumption
    3.2%
    FY26

    Underpins guidance.

    Rate cuts assumption (US)
    1
    FY26

    Assumed for favorable market conditions for issuance.

    ACV growth (Market Intelligence)
    around 6%
    Q1 FY26

    In line with subscription revenue growth.

    Private markets revenues (enterprise level)
    north of $600 million
    FY25

    Total revenues from private markets across the enterprise.

    Ratings Private Credit growth
    over 25%
    Q1 FY26

    Growth off a decently substantial base.

    Client renewal increase for AI access
    35% to 45%
    Q1 FY26

    Two financial clients willing to pay for AI-ready data access.

    Client switching to S&P Global data and plug-in
    20% more expensive
    Q1 FY26

    Client canceled existing provider for S&P Global's offering.

    Product announcements

    6
    ProductTypeDetails
    S&P Global plug-in for Claude for Financial Serviceslaunch
    CERA Titanlaunch
    iBoxx U.S. Treasuries Indexlaunch
    Tokenized S&P 500 Index on blockchainlaunch
    S&P Link in U.S. and Europe senior debt indiceslaunch
    First esoteric ABS issuance backed by Bitcoinmilestone

    Deals & partnerships

    1
    SLBDivestiture (software portfolio) and distribution partnershipabout 25% of Upstream revenues

    Agreement to divest the software portfolio in the Upstream business within the Energy division.

    Risks & headwinds

    5
    Geopolitical conflict in IranPersisted into Q2 FY26; longer duration implies broader and more severe impact.

    Led to the largest energy shock since the 1970s, much higher energy and commodity prices, and elevated volatility. Could lead to more significant direct headwinds in Energy business and indirect headwinds in market-sensitive businesses.

    Mitigation: Assumes situation stabilizes by end of Q2 FY26; company is vigilant about effects, staying close with clients, and supporting them. Careful pacing of expenses.

    Increased scrutiny and volatility in private credit marketsQ1 FY26

    Wider spreads and elevated redemptions.

    Mitigation: Expects strong growth in private markets over the medium term, but this growth will require increased transparency from data and benchmarks. S&P Global's private markets strategy provides performance data, benchmarks, and analytics.

    Sanctions impact on Energy divisionOngoing

    Drove a 100 basis point headwind to Energy & Resources and 140 basis points headwind to Price Assessments.

    Mitigation: Company is streamlining the Upstream business and refocusing on proprietary Data & Insights.

    Slower growth in Upstream Data & InsightsCould take several quarters before management actions drive growth.

    Revenue declined 5% in Q1 FY26.

    Mitigation: Streamlining the business line, refocusing on proprietary Data & Insights, realignment of sales teams, and debut of upgraded client platform (CERA Titan).

    Potential for more significant direct/indirect headwinds from protracted Iran conflictIf conflict persists longer or escalates.

    Could see more significant direct headwinds, particularly in the Energy business, and significant indirect headwinds in market-sensitive businesses depending on equity market reaction and credit market conditions.

    Mitigation: Prudent and careful pacing of expenses, vigilant monitoring of client health and macro environment.

    Q&A highlights

    7

    How is S&P Global thinking about partnership strategy with large AI players (building apps vs. providing data via APIs)? What is the monetization model and economics across distribution channels?

    Martina Cheung confirmed the intent to build MCP apps, focusing on data, standards, business logic, and tools. She cited the S&P Global plug-in for Claude for Financial Services as an example, where a client switched from an existing provider to S&P Global's data and plug-in, paying 20% more. Monetization is based on enterprise value, tracking usage, channels, and value created. She noted two financial clients paid a 35-45% renewal increase for AI-ready data access.

    “The first step to doing that has actually been the announcement of the S&P Global plug-in, which was announced in line with the Claude for Financial Services announcement in the first quarter.”

    asked by Toni Kaplan · answered by Martina Cheung

    2 min read6 chapters

    Detailed Narrative

    01

    AI Adoption and Monetization

    S&P Global is actively leveraging AI, with over a third of CapIQ Pro users engaging with AI features like ChatIQ and Document Intelligence. The volume of API calls from customers increased over 5x quarter-over-quarter, and 2x month-over-month from February to March. Early monetization signals show ACV growth among AI customers is 30% higher in Market Intelligence and double in Energy compared to non-AI customers, indicating increased value creation and willingness to pay for AI-enabled access.

    02

    Market Intelligence Data Differentiation

    The company provided a detailed breakdown of Market Intelligence revenue, highlighting that less than 5% of total S&P Global revenue comes from undifferentiated data. Proprietary and curated data, including Compustat and SNL, are key differentiators, often aggregated from physical documents. Capital IQ Pro's value extends beyond the desktop to its data, business logic, and tools, which are increasingly accessible via standard protocols like MCP for AI integration, catering to diverse customer AI adoption journeys.

    03

    Upstream Business Transformation

    S&P Global is revamping its Upstream business within the Energy division, focusing on proprietary Data & Insights. They unveiled CERA Titan, an AI-native Upstream product, at CERAWeek, receiving overwhelmingly positive feedback and leading to increased leads and a large renewal. The company also signed an agreement to divest the Upstream software portfolio, representing about 25% of Upstream revenues, expected to close in late 2026 or early 2027, to further streamline focus and accelerate progress towards sustained positive growth.

    04

    Digital Asset Innovation

    The company continues to innovate in digital assets, launching the iBoxx U.S. Treasuries Index as the first major index available as a native digital asset on a blockchain. They also launched an additional tokenized S&P 500 Index in partnership with Centrifuge and introduced S&P Link in U.S. and Europe senior debt indices. In Ratings, they raised the first esoteric ABS issuance backed by Bitcoin, demonstrating ongoing leadership in digital asset finance since 2018.

    05

    Capital Allocation Strategy

    S&P Global remains committed to disciplined capital allocation, returning $1 billion to shareholders through share repurchases in Q1. The company plans to issue approximately $2 billion in debt at Mobility in conjunction with its spin-off, with proceeds funding incremental share repurchases and debt reduction. Given confidence in long-term growth, they expect to increase repurchases from 85% of adjusted free cash flow to at least 100%, or roughly $4.5 billion for the year.

    06

    Macroeconomic Headwinds

    The conflict in Iran has introduced significant volatility and uncertainty, impacting energy markets and supply chains, leading to suppressed near-term energy client demand. This could also create indirect headwinds for market-sensitive businesses if the conflict protracts. Private credit markets also faced increased scrutiny, wider spreads, and elevated redemptions, though these trends are currently playing out as expected within the company's initial assumptions.

    AI-generated summary of the company’s earnings call. Not investment advice.