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S&P Global Beats Q3 Earnings on Indices & Market Intelligence
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Key Takeaways
SPGI's Q3 earnings rose 9% y/y to $4.58 per share, while revenues climbed 7% to $3.68 billion.
S&P Global's Indices revenues increased 20% y/y, fueled by a 24% jump in asset-linked fees and higher AUM.
SPGI raised its 2026 EPS outlook to $17.70-$17.95 and initiated a strategic review of Capital IQ businesses.
S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
SPGI’s earnings of $4.58 per share topped the Zacks Consensus Estimate by 3.4% and increased 9% year over year. Revenues of $3.68 billion rose 7% and surpassed the consensus mark by 1.1%.
The performance was driven by strong growth in Indices and Market Intelligence. Higher asset-linked fees and demand for data solutions supported revenues. Ratings billed issuance increased 8%, reflecting strength in investment-grade debt markets.
The company completed the spin-off of its Mobility division, creating an independent public company, Mobility Global, on July 1, 2026. SPGI considered all comparable previous years’ values after excluding the Mobility division’s contribution.
SPGI's Ratings Growth Faces Margin Pressure
Ratings revenues increased 2% year over year to $1.27 billion. Transaction revenues rose 1% to $677 million, supported by investment-grade issuance related to mergers, acquisitions and hyperscaler investments. Weaknesses in high-yield, bank loans and structured finance partly offset these gains.
Non-transaction revenues grew 4% to $594 million, benefiting from annual and program fees and Crisil. Adjusted operating profit remained largely flat at $835 million. The adjusted operating margin contracted 130 basis points (bps) to 65.7%, as adjusted expenses increased 7% due to higher compensation and strategic investments.
S&P Global's Indices Deliver Strong Growth in Q3
Indices revenues jumped 20% year over year to $554 million. Asset-linked fees increased 24% to $375 million, supported by higher assets under management (AUM). Exchange-traded derivatives revenues rose 19% to $92 million, while Data & Custom Subscriptions revenues grew 7% to $87 million.
Exchange-traded fund AUM reached $6.52 trillion, increasing 26%, while average daily derivatives trading volumes climbed 15%. Adjusted operating profit advanced 22% to $398 million, and the adjusted operating margin expanded 150 bps to 71.9%. Adjusted expenses increased 14%, reflecting growth investments and higher compensation.
SPGI's Energy Business Records Margin Expansion
Energy revenues increased 6% year over year to $645 million. Platts revenues rose 7% to $334 million, supported by subscription demand, particularly for liquefied natural gas and biofuels market data. CERA revenues increased 5% to $311 million, benefiting from Insights & Analytics offerings.
Recurring revenues represented 90.4% of segment revenues compared with 91.2% a year earlier. Adjusted operating profit increased 10% to $310 million, while the adjusted operating margin expanded 190 bps to 48.1%. Adjusted expenses increased 2% due to technology and compensation costs, partly offset by productivity savings.
S&P Global's Market Intelligence Profit Climbs
Market Intelligence revenues increased 7% year over year to $1.26 billion. Growth in Platforms, including contributions from With Intelligence and demand for Data Management Solutions and RatingsXpress, supported results. Enterprise Solutions recorded low-single-digit growth, constrained by the divestitures of Enterprise Data Management and thinkFolio.
Recurring revenues accounted for 97% of segment revenues, increasing 30 bps. Adjusted operating profit climbed 10% to $457 million, while the adjusted operating margin improved 110 bps to 36.2%. Adjusted expenses rose 5%, reflecting With Intelligence and technology costs, partly offset by divestitures.
SPGI's Profitability & Cash Flow Strengthen in Q3
Adjusted operating profit increased 8% year over year to $1.97 billion. Adjusted expenses rose 5% to $1.71 billion, allowing the adjusted operating margin to expand 60 bps to 53.5%.
Adjusted net income increased 4% to $1.34 billion. The adjusted effective tax rate rose to 23.1% from 21.2%, while a 4% reduction in diluted shares outstanding supported per-share earnings growth.
Cash provided by operating activities from continuing operations totaled $1.56 billion. Adjusted free cash flow, excluding certain items, reached $1.52 billion.
S&P Global's Capital Returns Remain Robust
SPGI repurchased $2.6 billion in shares during the third quarter, bringing year-to-date repurchases to $4.1 billion. Management continues to expect total share repurchases exceeding $7 billion in 2026. The company paid $281 million in dividends during the quarter.
Cash, cash equivalents and restricted cash totaled $2.44 billion at quarter-end. Short- and long-term debt totaled $13.06 billion, while adjusted net debt was 2.1 times adjusted EBITDA.
SPGI Raises Outlook Amid Strategic Portfolio Review
S&P Global raised its 2026 revenue growth guidance to 7.4-8.4% from 5.9-7.9%. Organic constant-currency revenue growth is projected at 7.5-8.5% compared with the previous guidance of 6-8%. Adjusted operating margin expansion is expected at 75-100 bps, up from 35-60 bps. Adjusted earnings guidance increased to $17.70-$17.95 per share from $17.50-$17.75. The Zacks Consensus Estimate for the same is pegged at $17.69.
Management lowered capital expenditure expectations to $155-$165 million from $190-$210 million. The company also initiated a strategic review, including a potential separation, of Capital IQ and associated data businesses. RatingsDirect, RatingsXpress and Enterprise Solutions are expected to remain within S&P Global.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 beat the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. The company’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.
ManpowerGroup (MAN - Free Report) posted mixed third-quarter 2026 results. MAN’s adjusted earnings of $1.01 per share matched the consensus mark and rose 21.7% from the year-ago quarter. The company’s total revenues of $4.84 billion missed the consensus mark by 1.4% but increased 4.4% year over year.
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S&P Global Beats Q3 Earnings on Indices & Market Intelligence
Key Takeaways
S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
SPGI’s earnings of $4.58 per share topped the Zacks Consensus Estimate by 3.4% and increased 9% year over year. Revenues of $3.68 billion rose 7% and surpassed the consensus mark by 1.1%.
S&P Global Inc. Price, Consensus and EPS Surprise
S&P Global Inc. price-consensus-eps-surprise-chart | S&P Global Inc. Quote
The performance was driven by strong growth in Indices and Market Intelligence. Higher asset-linked fees and demand for data solutions supported revenues. Ratings billed issuance increased 8%, reflecting strength in investment-grade debt markets.
The company completed the spin-off of its Mobility division, creating an independent public company, Mobility Global, on July 1, 2026. SPGI considered all comparable previous years’ values after excluding the Mobility division’s contribution.
SPGI's Ratings Growth Faces Margin Pressure
Ratings revenues increased 2% year over year to $1.27 billion. Transaction revenues rose 1% to $677 million, supported by investment-grade issuance related to mergers, acquisitions and hyperscaler investments. Weaknesses in high-yield, bank loans and structured finance partly offset these gains.
Non-transaction revenues grew 4% to $594 million, benefiting from annual and program fees and Crisil. Adjusted operating profit remained largely flat at $835 million. The adjusted operating margin contracted 130 basis points (bps) to 65.7%, as adjusted expenses increased 7% due to higher compensation and strategic investments.
S&P Global's Indices Deliver Strong Growth in Q3
Indices revenues jumped 20% year over year to $554 million. Asset-linked fees increased 24% to $375 million, supported by higher assets under management (AUM). Exchange-traded derivatives revenues rose 19% to $92 million, while Data & Custom Subscriptions revenues grew 7% to $87 million.
Exchange-traded fund AUM reached $6.52 trillion, increasing 26%, while average daily derivatives trading volumes climbed 15%. Adjusted operating profit advanced 22% to $398 million, and the adjusted operating margin expanded 150 bps to 71.9%. Adjusted expenses increased 14%, reflecting growth investments and higher compensation.
SPGI's Energy Business Records Margin Expansion
Energy revenues increased 6% year over year to $645 million. Platts revenues rose 7% to $334 million, supported by subscription demand, particularly for liquefied natural gas and biofuels market data. CERA revenues increased 5% to $311 million, benefiting from Insights & Analytics offerings.
Recurring revenues represented 90.4% of segment revenues compared with 91.2% a year earlier. Adjusted operating profit increased 10% to $310 million, while the adjusted operating margin expanded 190 bps to 48.1%. Adjusted expenses increased 2% due to technology and compensation costs, partly offset by productivity savings.
S&P Global's Market Intelligence Profit Climbs
Market Intelligence revenues increased 7% year over year to $1.26 billion. Growth in Platforms, including contributions from With Intelligence and demand for Data Management Solutions and RatingsXpress, supported results. Enterprise Solutions recorded low-single-digit growth, constrained by the divestitures of Enterprise Data Management and thinkFolio.
Recurring revenues accounted for 97% of segment revenues, increasing 30 bps. Adjusted operating profit climbed 10% to $457 million, while the adjusted operating margin improved 110 bps to 36.2%. Adjusted expenses rose 5%, reflecting With Intelligence and technology costs, partly offset by divestitures.
SPGI's Profitability & Cash Flow Strengthen in Q3
Adjusted operating profit increased 8% year over year to $1.97 billion. Adjusted expenses rose 5% to $1.71 billion, allowing the adjusted operating margin to expand 60 bps to 53.5%.
Adjusted net income increased 4% to $1.34 billion. The adjusted effective tax rate rose to 23.1% from 21.2%, while a 4% reduction in diluted shares outstanding supported per-share earnings growth.
Cash provided by operating activities from continuing operations totaled $1.56 billion. Adjusted free cash flow, excluding certain items, reached $1.52 billion.
S&P Global's Capital Returns Remain Robust
SPGI repurchased $2.6 billion in shares during the third quarter, bringing year-to-date repurchases to $4.1 billion. Management continues to expect total share repurchases exceeding $7 billion in 2026. The company paid $281 million in dividends during the quarter.
Cash, cash equivalents and restricted cash totaled $2.44 billion at quarter-end. Short- and long-term debt totaled $13.06 billion, while adjusted net debt was 2.1 times adjusted EBITDA.
SPGI Raises Outlook Amid Strategic Portfolio Review
S&P Global raised its 2026 revenue growth guidance to 7.4-8.4% from 5.9-7.9%. Organic constant-currency revenue growth is projected at 7.5-8.5% compared with the previous guidance of 6-8%. Adjusted operating margin expansion is expected at 75-100 bps, up from 35-60 bps. Adjusted earnings guidance increased to $17.70-$17.95 per share from $17.50-$17.75. The Zacks Consensus Estimate for the same is pegged at $17.69.
Management lowered capital expenditure expectations to $155-$165 million from $190-$210 million. The company also initiated a strategic review, including a potential separation, of Capital IQ and associated data businesses. RatingsDirect, RatingsXpress and Enterprise Solutions are expected to remain within S&P Global.
S&P Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 beat the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. The company’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.
ManpowerGroup (MAN - Free Report) posted mixed third-quarter 2026 results. MAN’s adjusted earnings of $1.01 per share matched the consensus mark and rose 21.7% from the year-ago quarter. The company’s total revenues of $4.84 billion missed the consensus mark by 1.4% but increased 4.4% year over year.