S&P Global (SPGI 1.62%), the global provider of analytics, ratings, and insights, reported its earnings for the fourth quarter on Feb. 11, 2025. The company showcased a strong performance exceeding market forecasts, particularly driven by its Ratings division’s growth. S&P Global reported an adjusted EPS of $3.77, beating analyst estimates of $3.47, by about 8.6%. Revenue for the period was $3.592 billion, compared to expectations of $3.498 billion, indicating a solid quarter with a 14% year-over-year revenue growth. Overall, the results reflected a noteworthy quarter, with significant gains in its core segments.
| Metric | Q4 2024 | Q4 Estimate | Q4 2023 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS | $3.77 | $3.47 | $3.13 | +20% |
| Revenue | $3.592B | $3.498B | $3.152B | +14% |
| Adjusted Operating Margin | 46.7% | N/A | 44.1% | +2.6 pp |
| Net Income | $880M | N/A | $579M | +52% |
Source: Analyst estimates for the quarter provided by FactSet.
About S&P Global
S&P Global is a leading provider of financial information and analytics, critical across industries. The company operates in segments such as Market Intelligence, Ratings, Commodity Insights, and Indices. Its core offering includes subscription-based models providing stable and predictable income streams.
Recently, S&P Global has focused on leveraging its vast data resources to enhance its analytics capabilities, emphasizing innovation in ESG (Environmental, Social, and Governance) indices and sustainable finance products.
NYSE: SPGI
Key Data Points
Quarter Highlights
The last quarter saw S&P Global making significant strides, particularly in its Ratings segment, which recorded a 27% jump in revenue. The overall revenue for the quarter stood at $3.592 billion, bolstered by broad gains across all segments.
The company's Market Intelligence unit registered a 5% increase in revenue. It remained solid through its subscription services, reflecting ongoing demand for data and analytics. The Commodity Insights segment showed a 10% increase in revenue.
Indices revenue grew by an impressive 21%, primarily driven by asset-linked fees linked to the rise in popularity of exchange-traded funds (ETFs) and mutual funds based on its benchmarks.
Looking Ahead
For 2025, S&P Global anticipates revenue growth of 5.0% to 7.0%, with a projected GAAP diluted EPS between $14.20 and $14.45. Adjusted EPS is forecasted to be in the range of $17.00 to $17.25. The company aims to capitalize on growth opportunities, particularly in emerging markets and ESG offerings.
Investors should watch for S&P Global's continuous investment in data and technological enhancements aimed at maintaining its competitive edge. Its commitment to returning 85% or more of its adjusted free cash flow to shareholders is also a significant focus moving forward.
