S&P Global Inc. (NYSE:SPGI) is one of the world’s most influential providers of credit ratings, benchmarks, analytics, and market intelligence that power global capital markets. Headquartered in New York, the company traces its roots back to 1860 when Henry Varnum Poor published the “History of Railroads and Canals in the United States,” a pioneering work in financial reporting. Over the decades, S&P Global evolved into a trusted source of credit ratings and financial benchmarks, with Standard & Poor’s playing a pivotal role in shaping modern capital markets. Today, the company stands as a market leader, delivering essential intelligence that enables governments, corporations, and investors to make informed decisions.
The company operates through five core divisions: S&P Global Ratings, S&P Dow Jones Indices, Market Intelligence, Commodity Insights, and Mobility. Each business line contributes to S&P Global’s diversified revenue streams while reinforcing its reputation as a critical pillar of global financial infrastructure. Its ratings division is recognized worldwide for its credit ratings and risk assessments, while S&P Dow Jones Indices is best known for the S&P 500, one of the most widely tracked equity benchmarks. Market Intelligence provides deep financial data and analytics to corporations, financial institutions, and investors, while Commodity Insights offers indispensable pricing and analytics for energy and commodities markets. The Mobility segment, which includes brands like CARFAX and automotiveMastermind, delivers essential data and analytics to the automotive industry.
Throughout its history, S&P Global has consistently expanded its capabilities through strategic mergers, acquisitions, and technological innovations. A transformative moment came in 2022 with the merger of S&P Global and IHS Markit, which significantly broadened the company’s global reach and product offerings. This combination created a powerhouse in financial information and analytics, further solidifying S&P Global’s ability to serve as a one-stop platform for critical market data. The company has continued to innovate by integrating artificial intelligence and cloud-based solutions into its products, ensuring that clients can access real-time insights and analytics in an increasingly data-driven world.
S&P Global has also strengthened its leadership in sustainability and private markets. It provides ESG data and analytics to help clients navigate the energy transition, while also expanding its presence in private credit markets by applying the same rigorous methodologies that define its public credit ratings. These strategic initiatives reflect the company’s forward-looking approach and its commitment to staying ahead of global financial trends.
Backed by a legacy of credibility, accuracy, and innovation, S&P Global is more than just a data provider—it is a cornerstone of the global economy. Its solutions are embedded in the workflows of the largest financial institutions, governments, and corporations worldwide. By combining differentiated data, advanced analytics, and a relentless focus on innovation, S&P Global continues to shape the way financial markets operate, creating long-term value for clients and shareholders alike.
Market Intelligence Division Delivers Exceptional Growth
A key highlight of the quarter was the outstanding performance of the Market Intelligence division, which posted 7% organic constant currency revenue growth and achieved more than 200 basis points of margin expansion. The division’s leadership team implemented a comprehensive revenue transformation strategy by simplifying incentive structures, reducing silos, and strengthening customer engagement. These efforts are paying off in the form of higher net renewal rates and competitive wins, including multimillion-dollar expansion deals with leading global banks and technology companies.
The integration of Visible Alpha into Capital IQ Pro, completed one quarter ahead of schedule, further strengthened S&P Global’s product offering and was met with strong customer reception. Market Intelligence is also at the forefront of generative AI adoption, launching six new enhancements powered by the acquisition of ProntoNLP. These innovations are expected to contribute to revenue growth over time as clients increasingly rely on AI-driven analytics to enhance decision-making.
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Strength in Ratings and Private Credit
S&P Global’s Ratings business performed well despite market volatility early in the quarter. While transaction revenue decreased by 4% year-over-year due to softer bank loan and structured finance activity, non-transaction revenue increased 8%, supported by strong annual fees. Importantly, the company continues to capitalize on the fast-growing private credit market. S&P Global has built a strong presence in this space by applying the same rigorous methodologies used in public markets to private credit ratings, a consistency valued by investors and asset managers.
The company’s early investments and deep engagement with private market participants have positioned it to benefit from the ongoing expansion of private credit. Structured finance and project finance ratings, along with middle-market CLO ratings, remain key drivers of private market revenue growth. As issuers shift between public and private markets, S&P Global’s consistent methodology gives it a competitive advantage in serving both segments effectively.
S&P Dow Jones Indices and Commodity Insights Power Ahead
The S&P Dow Jones Indices division posted a 15% increase in revenue, fueled by higher asset-linked fees from strong net inflows and market appreciation. Exchange-Traded Derivatives revenue also grew 15%, benefiting from increased trading volumes. The launch of innovative tools like the AI-powered SPICE index builder, which drastically reduces the time required to create custom indices, highlights the company’s continued commitment to product innovation.
Commodity Insights revenue increased 8%, marking the seventh consecutive quarter of double-digit growth in Energy & Resources Data & Insights. The division continues to benefit from strong demand for price assessments and data solutions, even as regulatory uncertainty and sanctions create modest headwinds.
Mobility Division Prepares for Spin-Off
The Mobility segment saw a 10% increase in revenue, driven by double-digit growth in dealer and financial products such as CARFAX and automotiveMastermind. The company named Bill Eager, CEO of CARFAX, as the President and CEO-designate of the planned standalone Mobility company. The spin-off, expected to be completed within 12 to 18 months, is designed to unlock shareholder value by allowing the Mobility business to operate as an independent public company while S&P Global sharpens its focus on its core analytics and ratings businesses.
Accelerating AI Innovation and Client Partnerships
S&P Global continues to lead in AI adoption across the financial data and analytics industry. Through partnerships with major hyperscale providers like Microsoft and Anthropic, the company is making its proprietary data available on leading AI platforms while maintaining strict intellectual property controls. Tools like Kensho’s GenAI-powered CreditCompanion and SPICE index builder highlight the company’s ability to embed AI capabilities into its product suite to improve customer productivity and decision-making.
The company’s Chief Client Office (CCO) initiative is another strategic advantage, fostering deep relationships with approximately 130 of S&P Global’s largest clients. This initiative has already resulted in significant multiyear partnerships, such as the comprehensive deal with Barclays, which provides the bank access to a broad suite of S&P Global products and data solutions.
Financial Strength and Shareholder Returns
S&P Global’s disciplined expense management and productivity initiatives contributed to 150 basis points of trailing 12-month margin expansion. The company achieved 95% of its targeted revenue synergies and exited the quarter with a run-rate of $332 million, ahead of its 2026 goal of $350 million. Strong cash flow allowed the company to return nearly $950 million to shareholders in Q2 through dividends and share repurchases, underscoring its commitment to capital returns while continuing to invest heavily in growth and innovation.
Outlook for the Rest of 2025
Management reaffirmed its confidence in delivering strong results for the remainder of the year, projecting total revenue growth of 5% to 7% and adjusted EPS of $17.00 to $17.25, representing 10% year-over-year growth at the high end. Ratings revenue is expected to grow 2% to 5%, while Indices revenue is forecast to increase 8% to 10%. Mobility guidance was raised slightly, reflecting the strength of its subscription-based businesses.
The company is balancing strategic investments in technology, product innovation, and AI initiatives with disciplined expense control, ensuring long-term profitable growth. Management also hinted at an ambitious multiyear plan that will be shared at its upcoming Investor Day in November, where it will likely provide further details on its agentic AI strategy and private credit initiatives.
Why S&P Global Remains a Strong Buy
S&P Global’s second-quarter performance reinforces its position as a leading provider of essential financial data, analytics, and benchmarks. The company is successfully executing on strategic initiatives, capitalizing on private markets growth, and pioneering AI-driven solutions that enhance its competitive edge. With resilient recurring revenue streams, strong pricing power, and a clear commitment to shareholder value, SPGI remains a compelling investment for long-term growth and capital appreciation.
Its ability to outperform even in uncertain macroeconomic conditions highlights the strength of its diversified business model. As S&P Global continues to expand its reach in private credit, indices, and AI-powered analytics, the company is well-positioned to deliver sustained earnings growth and robust shareholder returns in the years ahead.
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