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    SPGI
    Earnings call· Sep 2025(Q3 FY25)

    S&P Global Inc. SPGI

    Oct 30, 2025 Source

    Executive summary

    S&P Global Q3 FY25 — Record Revenue, Profit, and EPS Driven by Strong Ratings and Indices Performance

    S&P Global delivered a record-breaking quarter, showcasing robust performance across its Ratings and Indices divisions, alongside significant acceleration in Market Intelligence. The company continues to leverage prior AI investments for efficient innovation and margin expansion, while strategically optimizing its portfolio through divestitures and key acquisitions like With Intelligence to enhance its private markets data offerings.

    Highlights

    5

    • Achieved record revenue, operating profit, and EPS, with revenue increasing 9% year-over-year and adjusted EPS up 22%.

    • Market Intelligence organic constant currency growth accelerated to 8%, marking its strongest performance in 6 quarters.

    • Ratings revenue increased 12% year-over-year, benefiting from strong high-yield and structured finance issuance, and record RES revenue.

    • S&P Dow Jones Indices revenue increased 11%, driven by higher AUM and net inflows.

    • Achieved the merger revenue synergy target of $355 million on a run rate basis well ahead of the 2022 timeline.

    Concerns

    3

    • Commodity Insights faces headwinds from additional sanctions, expected to contribute $6 million in 2025 and $20 million in 2026.

    • Upstream Data & Insights revenue declined 2% year-over-year due to customer consolidation and lower oil prices, with headwinds expected to persist into next year.

    • Mobility Manufacturing revenue declined 3% year-over-year, impacted by tariffs and related uncertainty affecting consulting revenues and discretionary spending.

    Guidance & targets

    9
    CategoryTargetConfidence
    Share Repurchase Program
    $2.5 billion
    high materiality
    High
    Total Revenue Growth
    7% to 8%
    high materiality
    High
    Adjusted Margins
    50% to 50.5%
    high materiality
    High
    Adjusted Diluted EPS
    $17.60 to $17.85
    high materiality
    High
    Market Intelligence Revenue Growth
    5.5% to 6.5%
    medium materiality
    High
    Ratings Revenue Growth
    6.5% to 8.5%
    high materiality
    High
    Commodity Insights Revenue Headwind (Sanctions)
    $6 million
    medium materiality
    High
    Commodity Insights Revenue Headwind (Sanctions)
    $20 million
    medium materiality
    High
    Indices Revenue Growth
    10% to 12%
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Market Intelligence
    Accelerated revenue growth on both reported and organic basis, representing the strongest organic growth in 6 quarters. Strong demand for industry and company data. Enterprise Solutions benefited from increased issuance volumes and strong demand for lending workflow solutions. Credit & Risk Solutions benefited from demand for Ratings data feeds. Significant operating margin expansion driven by productivity savings.
    Organic constant currency growth: 8%Operating margin expansion: 360 bpsData, Analytics & Insights revenue growth: 5%Data, Analytics & Insights organic revenue growth: 6%Enterprise Solutions reported revenue growth: 9%Enterprise Solutions organic growth (ex-Fincentric): 13%Credit & Risk Solutions reported revenue growth: 6%Credit & Risk Solutions organic revenue growth: 6%
    		—8%—35.6%
    Ratings
    Strong investor demand and resilient market sentiment contributed to a favorable financing environment. Growth was balanced between transaction and non-transaction revenues, with particular strength in high-yield and structured finance. Adjusted expenses declined due to lapping elevated incentive compensation and continued productivity improvements.
    Transaction revenue growth: 12%Non-transaction revenue growth: 12%RES revenue: record
    		—12%—67.1%
    Commodity Insights
    Revenue growth largely driven by Energy & Resources Data & Insights and Price Assessments. Commercial momentum persists with transition to enterprise contracts, but growth was tempered by sanctions. Upstream Data & Insights declined due to customer consolidation and lower oil prices, with management actively repositioning the business.
    Energy & Resources Data & Insights growth: 11%Price Assessments growth: 7%Advisory & Transactional Services revenue growth: 4%Global Trading Services: record quarterUpstream Data & Insights revenue decline: 2%
    		—6%—48.1%
    Mobility
    Revenue growth highlights the mission-critical nature of products and strong execution despite tariff and regulatory uncertainty. Dealer revenue driven by CARFAX and automotiveMastermind. Manufacturing revenue declined due to tariffs and discretionary spending. Financials & Other benefited from strong underwriting volumes. Spin-off remains on track.
    Dealer revenue growth: 10%Manufacturing revenue decline: 3%Financials & Other growth: 12%
    		—8%—43.3%
    S&P Dow Jones Indices
    Double-digit growth in Asset-Linked Fees, driven by higher AUM and net inflows. Exchange-traded derivatives revenue grew against a difficult year-over-year comparison. Data & Custom Subscriptions benefited from new business growth in end-of-day contracts and real-time offerings. Operating margin expanded due to strategic investments and lower incentives.
    Asset-Linked Fees growth: 14%Exchange-traded derivatives revenue growth: 1%Data & Custom Subscriptions growth: 10%
    		—11%—71.2%

    Operational metrics

    32
    Subscription revenue growth
    6%increased 6%
    Q3 FY25

    Company-wide subscription revenue growth.

    Adjusted operating margin expansion
    180
    TTM

    Trailing 12-month adjusted operating margin expansion.

    Billed issuance growth
    13%increased 13% year-over-year
    Q3 FY25

    Company-wide billed issuance growth.

    Merger revenue synergies
    $355 million
    Q3 FY25

    Achieved run rate merger revenue synergy target well in advance of the 2022 timeline.

    Vitality index
    at or above 10%
    Q3 FY25

    Continued to deliver vitality index at or above target.

    Energy Transition & Sustainability revenue growth
    6%grew 6%
    Q3 FY25

    Revenue growth for Energy Transition & Sustainability products.

    Energy Transition & Sustainability revenue
    $96 million
    Q3 FY25

    Total revenue for Energy Transition & Sustainability products.

    Private Markets revenue growth
    22%doubled from last quarter, accelerating to 22% year-over-year
    Q3 FY25

    Revenue growth in Private Markets, primarily driven by Ratings.

    Private Markets revenue
    $164 million
    Q3 FY25

    Total revenue from Private Markets.

    Market Intelligence organic constant currency growth
    8%
    Q3 FY25

    Strongest organic growth in MI in 6 quarters.

    Market Intelligence operating margin expansion
    360year-over-year
    Q3 FY25

    Significant operating margin expansion for Market Intelligence.

    Ratings operating margin expansion
    540year-over-year
    Q3 FY25

    Operating margin expansion for Ratings division.

    Commodity Insights operating margin expansion
    30year-over-year
    Q3 FY25

    Operating margin expansion for Commodity Insights.

    Mobility operating margin improvement
    110year-over-year
    Q3 FY25

    Operating margin improvement for Mobility segment.

    Indices operating margin expansion
    100year-over-year
    Q3 FY25

    Operating margin expansion for S&P Dow Jones Indices.

    Total operating margin expansion
    330year-on-year
    Q3 FY25

    Company-wide year-on-year operating margin expansion.

    Total operating margin
    52.1%
    Q3 FY25

    Company-wide adjusted operating margin.

    Total operating margin (ex-OSTTRA)
    51.6%
    Q3 FY25

    Adjusted operating margin excluding the contribution from OSTTRA, which was divested.

    Proprietary revenue share
    over 95%
    Q3 FY25

    Over 95% of total company revenue is derived from proprietary sources.

    Market Intelligence non-proprietary revenue share
    12%
    Q3 FY25

    Portion of Market Intelligence revenue from publicly available and not materially enhanced data.

    Company Total non-proprietary revenue share
    less than 5%
    Q3 FY25

    Portion of total company revenue from publicly available and not materially enhanced data.

    Market Intelligence organic ACV growth
    6.5% to 7%
    Q3 FY25

    Organic ACV growth for Market Intelligence, ticking up quarter after quarter.

    Market Intelligence sales growth
    around 10%
    YTD

    Year-to-date sales growth for Market Intelligence.

    Market Intelligence non-subscription transaction revenue growth
    13%
    Q3 FY25

    Growth in non-subscription transaction revenue within Market Intelligence, as capital markets accelerated.

    Market Intelligence recurring variable revenue growth
    11%
    Q3 FY25

    Growth in recurring variable revenue within Market Intelligence.

    Market Intelligence margin guidance change
    75at the midpoint
    FY25

    Guidance range for MI margins raised by 75 basis points at the midpoint for the full year.

    Indices Asset-Linked Fees growth
    14%
    Q3 FY25

    Growth in revenue associated with Asset-Linked Fees for Indices.

    Indices Exchange-Traded Derivatives revenue growth
    1%
    Q3 FY25

    Growth in Exchange-traded derivatives revenue for Indices, against a difficult year-over-year comparison.

    Indices Data & Custom Subscriptions growth
    10%
    Q3 FY25

    Growth in Data & Custom Subscriptions for Indices.

    Capital invested in AI innovation
    over $1 billion
    2018-present

    Total investment in AI innovation across three developmental stages since 2018.

    Commodity Insights revenue growth guidance
    trimmed at the upper end of prior range
    FY25

    Outlook for Commodity Insights revenue growth was trimmed at the upper end of the prior range due to sanctions and other factors.

    Mobility revenue growth guidance
    raised towards the upper end of prior range
    FY25

    Revenue guidance range for Mobility was raised towards the upper end of the prior range.

    Product announcements

    4
    ProductTypeDetails
    AI-powered document searchlaunch
    Document Intelligence 2.0launch
    S&P 500 Index on chainlaunch
    ProntoNLP filings productlaunch

    Deals & partnerships

    6
    OSTTRADivestiture of the OSTTRA business.

    The OSTTRA business was divested earlier this month.

    UnnamedDivestiture of Enterprise Data Management and thinkFolio businesses.

    Signed an agreement to divest Enterprise Data Management and thinkFolio businesses, subject to customary closing conditions, as part of portfolio optimization.

    With IntelligencePlanned acquisition of With Intelligence, a provider of differentiated private markets data.

    Planned acquisition of With Intelligence, which brings extensive data in private equity, private credit, infrastructure, hedge funds, and family offices. Expected to close by early 2026.

    Cambridge Associates and MercerStrategic collaboration to deliver comprehensive private markets performance analytics.

    Announced a strategic collaboration with investment firms Cambridge Associates and Mercer to deliver comprehensive private markets performance analytics, with a beta launch expected by year-end.

    CentrifugeCollaboration to bring the S&P 500 Index on chain, expanding access to the benchmark and entering the fund tokenization space.

    Collaboration with Centrifuge, a decentralized infrastructure provider specializing in real-world asset integration, to license the S&P 500 Index for on-chain use.

    ARC ResearchAcquisition of ARC Research, a leading independent provider of investment performance data in the private wealth market.

    Completed the acquisition of ARC Research, which maintains the world's largest proprietary data set of private client portfolios, adding capabilities to S&P Dow Jones Indices' wealth initiatives.

    Risks & headwinds

    3
    Additional sanctions impacting Commodity InsightsFY25, FY26

    $6 million headwind in 2025 and approximately $20 million headwind in 2026.

    Mitigation: Assumes current sanctions remain in place and no new sanctions are introduced.

    Decline in Upstream Data & Insights revenuePersist through Q4 and likely into next year

    declined 2% year-over-year

    Mitigation: Actively intervening by engaging with clients, accelerating product innovations, and aligning commercial incentives to stabilize and reposition the business for growth.

    Mobility Manufacturing revenue decline due to tariffs and uncertaintyOngoing

    declined 3% year-over-year

    Mitigation: Strong execution in other areas of Mobility, highlighting the mission-critical nature of the division's products.

    What to watch in Q4 FY25

    5

    Market Intelligence organic constant currency growth

    next quarter
    Current8%
    TargetContinued acceleration or stabilization at high levels

    Why it matters

    MI's accelerated growth is a key driver of overall company performance and reflects successful strategic initiatives.

    Market Intelligence also saw another quarter of revenue acceleration on both a reported and organic basis.

    Q&A highlights

    7

    What are the key drivers behind Market Intelligence's 8% organic growth, and how do past AI investments influence future investment needs and scalability?

    Martina attributed MI growth to successful revenue transformation, product innovation, and competitive wins, highlighting decade-long AI investments (Kensho) for economical innovation. Eric added that the pipeline is healthy, sales are up ~10% YTD, and organic ACV growth is consistently ticking up in the 6.5% to 7% range.

    “ACV has been ticking up quarter after quarter after quarter. In the first quarter, we said it was a bit over reported revenue. In the second quarter, we said it had ticked up. In the third quarter, I can also confirm that it's up again.”

    asked by Toni Kaplan · answered by Eric Aboaf

    3 min read8 chapters

    Detailed Narrative

    01

    Record Performance and Capital Allocation

    S&P Global delivered a record-breaking third quarter with revenue increasing 9% year-over-year and adjusted EPS growing 22%. The company returned nearly $1.5 billion to shareholders through dividends and buybacks since the last earnings call. An additional $2.5 billion share repurchase program is planned for Q4, aiming to return approximately 85% of 2025 adjusted free cash flow, with the acquisition of With Intelligence to be funded by $1 billion in incremental debt and cash on hand.

    02

    Strategic Portfolio Optimization

    The company announced the divestiture of its Enterprise Data Management and thinkFolio businesses, subject to customary closing conditions. This move is part of ongoing efforts to streamline and simplify the business, ensuring strategic alignment of products and services. Management stated that this multi-year exercise of portfolio optimization within Market Intelligence is now substantially complete.

    03

    Private Markets Expansion

    S&P Global announced the planned acquisition of With Intelligence, expected to close by early 2026. This acquisition will bring differentiated data on private markets, including private equity, private credit, infrastructure, hedge funds, and family offices, sourced directly from asset allocators and fund managers. This unique combination aims to create the most comprehensive solution for private markets participants globally, accelerating growth within the Market Intelligence division.

    04

    AI Innovation and Collaborations

    The company highlighted over $1 billion invested in AI innovation since 2018, spanning foundational capabilities (Kensho Link, Scribe, NERD, Extract) and GenAI applications (AI-powered document search in iLEVEL, Document Intelligence 2.0 in Capital IQ Pro, ChatIQ). Collaborations with major tech firms like Microsoft, Anthropic, Google, Salesforce, and IBM are expanding reach and monetizing S&P Global's differentiated data through new distribution channels, while ensuring strong IP protections.

    05

    Strategic Partnerships and Acquisitions

    S&P Global announced a strategic collaboration with Cambridge Associates and Mercer to deliver comprehensive private markets performance analytics, with a beta launch expected by year-end. A collaboration with Centrifuge was also announced to bring the S&P 500 Index on-chain, expanding access to the benchmark. Additionally, the acquisition of ARC Research, a provider of investment performance data for the private wealth market, was completed, enhancing S&P Dow Jones Indices' wealth initiatives.

    06

    Market Intelligence Momentum

    Market Intelligence achieved 8% organic constant currency growth, its strongest in six quarters, driven by successful revenue transformation initiatives, product innovation, and competitive wins. The segment saw a major investment bank adopt Capital IQ Pro as its primary desktop solution, citing the value of S&P Global's data transparency, modeling flexibility, and GenAI capabilities. ACV growth has consistently ticked up quarter-over-quarter.

    07

    Ratings Business Strength

    The Ratings division reported a 12% year-over-year revenue increase, balanced between transaction and non-transaction revenues. This performance was fueled by strong investor demand, resilient market sentiment, and particular strength in high-yield and structured finance issuance. The quarter also saw record revenue from Rating Evaluation Services (RES), contributing to the division's robust results.

    08

    Commodity Insights Headwinds

    Commodity Insights revenue increased 6%, with double-digit growth in Energy & Resources Data & Insights. However, the segment faces headwinds from additional sanctions, expected to impact 2025 by $6 million and 2026 by $20 million. Upstream Data & Insights revenue declined 2% year-over-year due to customer consolidation and lower oil prices, with management actively working to stabilize and reposition the business for future growth.

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