tapebrief

SPGI · Q2 2024 Earnings

Bullish

S&P Global

Reported July 31, 2025

30-second summary

Revenue grew 6% YoY to $3.76B with adjusted operating margin at 51.4% (+70bps YoY) and adjusted diluted EPS up 10% to $4.43. Management raised the FY2025 adjusted EPS low end by $0.25 to a $17.00–$17.25 range and reaffirmed revenue growth at 5–7% (now sourced from higher Ratings, Indices, and Mobility contributions), while cutting GAAP EPS guidance to $14.35–$14.60 from $14.60–$15.10 — explicitly because lower expected gain on asset sales more than offsets the higher operating revenue. Indices (+15%), Mobility (+10%), and Commodity Insights (+8%) carried the quarter; Ratings was nearly flat at +1%, the most-watched read into H2 FY2025.

Headline numbers

EPS

Q2 FY2024

$4.43

Revenue

Q2 FY2024

$3.75B

+6.0% YoY

Free cash flow

Q2 FY2024

$1.31B

Operating margin

Q2 FY2024

41.3%

Key financials

Q2 FY2024
MetricQ2 FY2024YoY
Revenue$3.75B+6.0%
EPS$4.43—
Operating margin41.3%—
Free cash flow$1.31B—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q2 FY2024
SegmentQ2 FY2024YoY
Market Intelligence$1.217B+5.0%
Ratings$1.148B+1.0%
Commodity Insights$0.555B+8.0%
Mobility$0.438B+10.0%
Indices$0.446B+15.0%

Capital & returns

Q2 FY2024
SegmentQ2 FY2024
Free Cash Flow$1.31 billion (six months: $2.13 billion)
Adjusted Free Cash Flow Excluding Certain Items$1.357 billion (six months: $2.258 billion)
Share Repurchases (Planned ASR)$1.3 billion authorized
Dividend per Share (Quarterly)$0.96
Expected Capital Returns to Shareholders~85% of adjusted free cash flow

Other KPIs

Q2 FY2024
SegmentQ2 FY2024
Subscription Revenue Growth7%
Adjusted Operating Margin51.4%
Adjusted Diluted EPS Growth10%

Management tone

No tone-shift analysis available for this quarter.

Recurring themes management leaned on this quarter:

Transaction revenue acceleration in ratings (63% growth)Generative AI as enterprise operating lever, not just customer featureVisible Alpha integration driving immediate sales momentum and broker growthRevenue synergy run-rate ahead of 2026 targets ($199M annualized vs $350M target)Private markets and energy transition as sustained growth engines (70%+ and 23% respectively)Margin expansion across diversified portfolio offsetting market headwinds

Risks management surfaced:

Refinancing pullforward into H1 2024 creating uncertainty around H2 timing and quantumContinued softness in financial services market segment affecting renewal ratesRecall business abnormally soft year-to-date in Mobility division with expectation of continued softnessMacroeconomic cyclicality and potential rate cut timing uncertainty affecting issuance forecastsFourth quarter modest year-over-year decline expected in billed issuance and transaction revenue

Q&A highlights

Ashish Sabhadra · RBC Capital Markets

Pipeline status for Market Intelligence, sales cycle trends, and desktop business outlook given Visible Alpha acceleration and underlying growth

Management acknowledged expected softness from 60,000+ seat eliminations post-COVID and interest rate impacts. Highlighted enterprise contracts' resilience (not renegotiated annually), Visible Alpha as must-have product (200+ contributing brokers, up from 180 at close), strong desktop visualization tools, and enterprise solutions growth of 11% driven by improving capital markets. Reiterated prior guidance.

60,000+ investment banking seats eliminated since COVIDVisible Alpha: 200+ contributing brokers (vs 180 at deal close)Enterprise solutions grew 11%Guidance reiterated from earlier in year

Manav Putnak · Barclays

Annualized contribution from Visible Alpha and FinCentric divestiture impact; future vendor consolidation opportunities and portfolio cleanup

Management outlined capital allocation model emphasizing portfolio optimization. Visible Alpha adds ~1% growth to Market Intelligence, FinCentric removes ~1% growth. Different segments impacted (Visible Alpha in desktop, FinCentric in enterprise solutions). Emphasized data and analytics breadth across platform as consolidation advantage, including private credit, private markets, and sustainability platforms.

Visible Alpha: ~1% growth contribution to MIFinCentric: ~1% growth headwind to MIPortfolio spanning traditional MI, financial services, information services, private credit, private markets, sustainability

George Tong · Goldman Sachs

Changes to billed issuance outlook (raised from 6-10% to 25% for full year) and which issuance categories drove the change most

Growth in billed issuance outlook across all categories, with accelerated growth in high yield and bank loan ratings (BLR). Investment grade showed strong Q1 but tapering in Q2 due to front-loaded refinancing activity. Highlighted CLOs and structured finance (e.g., data center securitizations) as particularly strong sub-asset classes.

Billed issuance outlook raised to 25% for full yearAccelerated growth in high yield and BLRInvestment grade refinancing front-loaded in Q1, tapering Q2CLOs and data center securitizations showing strong growth

Faiza Alwi · Deutsche Bank

Index business trends, particularly in data and subscriptions; acceleration in growth and new partnerships

Management highlighted flows from active to passive concentrated in U.S. equities benefiting S&P Dow Jones indices. Asset-linked fees grew 16% with lagged benefit expected. New partnerships launching variant S&P 500 funds (quality, economic), fixed income innovation (CBOE iBox Emerging Market Bond), mid-cap products (Vanguard S&P Global 1200 ADR), and emerging private markets/private credit indices opportunity with strong existing positions.

Asset-linked fees grew 16%New partnerships in S&P 500 quality and economic ETFsCBOE iBox Emerging Market Bond Index launchedVanguard S&P Global 1200 ADR product launched

Heather Balski · Bank of America

Investment spend philosophy and pace going forward, particularly given strategic investment success

Management reaffirmed commitment to continuous investment in new products/services/areas. Vitality index (revenue from products launched within past year) improved from 10% target to 11% in quarter. Key investment areas: private markets, sustainability/energy transition, artificial intelligence. Emphasized value creation and pricing power depend on customer value delivery. Will continue capital allocation for innovation with demonstrated strong track record.

Vitality index at 11% (vs 10% target)Key investment focus: private markets, sustainability, AITrack record of successful innovation investments demonstratedContinued investment commitment despite issuance recovery

What to watch into next quarter

Ratings revenue trajectory in Q3 and Q4 FY2025 — Q2 FY2025 came in at +1% YoY with transaction revenue down 4%. Watch whether Ratings turns negative YoY in H2 or whether Q2 proves the trough.

OSTTRA divestiture closing in H2 FY2025 — guidance assumes it closes. Slippage materially affects GAAP EPS and the gain-on-sale line embedded in the new $14.35–$14.60 range.

Adjusted operating margin path back toward the 48.5–49.5% FY2025 range — Q2 FY2025 came in at 51.4%, well above the FY guide midpoint. Either guidance is conservative or H2 sees meaningful reinvestment / mix drag. Watch which.

Indices growth durability above +10% — asset-linked fees grew 17%. Watch whether the segment sustains double-digit growth as comps stiffen.

Mobility separation execution — watch for timing milestones and any disclosed financial framework for the planned separation into a standalone public company.

Incremental capital return cadence — with $1.3B incremental ASR announced and ~85% of FCF return committed, watch whether the FY2025 return ratio is raised again at Q3.

Sources

  1. S&P Global Q2 FY2025 earnings press release (SEC filing) — https://www.sec.gov/Archives/edgar/data/64040/000006404025000143/spgi2q2025-earningsrelease.htm

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.