We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Recurring Revenues Aid SPGI Despite Investment Pressuring Margins
Read MoreHide Full Article
Key Takeaways
S&P Global posted 23% y/y EPS growth and 11% pro-forma revenue growth in Q2'26.
SPGI's recurring revenues rose 8%, while benchmark product revenues climbed 15% y/y.
S&P Global raised its 2026 buyback target above $7B as investments and buyouts lifted expenses.
S&P Global (SPGI - Free Report) reported impressive second-quarter 2026 results. The company's adjusted earnings were $4.83 per share, rising 23% year over year and beating the Zacks Consensus Estimate of $4.49 by 7.6%. Pro-forma revenues of $3.68 billion increased 11% and surpassed the consensus mark of $3.64 billion by 0.8%.
SPGI stock has moved up 3.7% in the past three months compared with the industry’s 9% return and the Zacks S&P 500 Composite's 1.9% uptick.
3-Month Share Price Performance
Image Source: Zacks Investment Research
How Is S&P Global Faring?
SPGI’s recurring revenues gained 8% year over year during the second quarter of 2026, while benchmark product revenues moved up 15%. This recurring revenue base supports durable growth across its primary businesses.
The company is expanding its distribution on the back of rapid AI adoption, with customers exceeding 500 using LLM-ready APIs and MCP-connected solutions, up more than 70% sequentially and API call volume outpacing five times the first-quarter level.
S&P Global’s profitability is backed by its productivity initiatives. During the second quarter of 2026, adjusted operating profit gained 15% year over year with margins expanding 200 basis points (bps).
The Enterprise Data Organization has achieved approximately 60% of its $100-million annualized savings via AI and other efficiency tactics. Banking on this positive, the company anticipates the adjusted operating margin to log a gain of 35-60 bps, or 75-100 bps excluding OSTTRA.
During the first half of 2026, the company repurchased $1.5 billion in shares, of which $500 million in shares were repurchased during the second quarter of 2026. Management raised its 2026 repurchase target by $3 billion to more than $7 billion, while the quarterly dividend remains 97 cents per share. Such shareholder-friendly actions boost investor morale, resulting in an enhanced bottom-line position.
Amid these positives, rapid technology investment, buyouts and growth initiatives raise expenses. During the second quarter of 2026, expenses rose 5.7% year over year, with adjusted expenses rising 6% against 11% pro-forma revenue growth. Continued investments could further strip margins if top-line growth slows.
Market Intelligence is undergoing a broad reset with new leadership, a revised structure and plans to consolidate redundant platforms. In the second quarter of 2026, Platforms, the larger part of Kensho Data & Platforms, grew in the low-single digits organically versus high-single-digit to low-double-digit growth in Kensho Data.
Bread Financial has a long-term earnings growth expectation of 13.1%. BFH delivered a trailing four-quarter earnings surprise of 147.1%, on average.
Interactive Brokers has a long-term earnings growth expectation of 20.2%. IBKR delivered a trailing four-quarter earnings surprise of 10.9%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Recurring Revenues Aid SPGI Despite Investment Pressuring Margins
Key Takeaways
S&P Global (SPGI - Free Report) reported impressive second-quarter 2026 results. The company's adjusted earnings were $4.83 per share, rising 23% year over year and beating the Zacks Consensus Estimate of $4.49 by 7.6%. Pro-forma revenues of $3.68 billion increased 11% and surpassed the consensus mark of $3.64 billion by 0.8%.
SPGI stock has moved up 3.7% in the past three months compared with the industry’s 9% return and the Zacks S&P 500 Composite's 1.9% uptick.
3-Month Share Price Performance
How Is S&P Global Faring?
SPGI’s recurring revenues gained 8% year over year during the second quarter of 2026, while benchmark product revenues moved up 15%. This recurring revenue base supports durable growth across its primary businesses.
The company is expanding its distribution on the back of rapid AI adoption, with customers exceeding 500 using LLM-ready APIs and MCP-connected solutions, up more than 70% sequentially and API call volume outpacing five times the first-quarter level.
S&P Global’s profitability is backed by its productivity initiatives. During the second quarter of 2026, adjusted operating profit gained 15% year over year with margins expanding 200 basis points (bps).
The Enterprise Data Organization has achieved approximately 60% of its $100-million annualized savings via AI and other efficiency tactics. Banking on this positive, the company anticipates the adjusted operating margin to log a gain of 35-60 bps, or 75-100 bps excluding OSTTRA.
During the first half of 2026, the company repurchased $1.5 billion in shares, of which $500 million in shares were repurchased during the second quarter of 2026. Management raised its 2026 repurchase target by $3 billion to more than $7 billion, while the quarterly dividend remains 97 cents per share. Such shareholder-friendly actions boost investor morale, resulting in an enhanced bottom-line position.
Amid these positives, rapid technology investment, buyouts and growth initiatives raise expenses. During the second quarter of 2026, expenses rose 5.7% year over year, with adjusted expenses rising 6% against 11% pro-forma revenue growth. Continued investments could further strip margins if top-line growth slows.
Market Intelligence is undergoing a broad reset with new leadership, a revised structure and plans to consolidate redundant platforms. In the second quarter of 2026, Platforms, the larger part of Kensho Data & Platforms, grew in the low-single digits organically versus high-single-digit to low-double-digit growth in Kensho Data.
Zacks Rank & Stocks to Consider
SPGI currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Finance sector are Bread Financial (BFH - Free Report) and Interactive Brokers (IBKR - Free Report) . These two companies presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bread Financial has a long-term earnings growth expectation of 13.1%. BFH delivered a trailing four-quarter earnings surprise of 147.1%, on average.
Interactive Brokers has a long-term earnings growth expectation of 20.2%. IBKR delivered a trailing four-quarter earnings surprise of 10.9%, on average.