S&P Global Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
S&P Global's Q3 2025 earnings call highlighted record financial results driven by strong performance in Ratings and Indices, strategic investments in AI and private markets, and active capital allocation through dividends and share repurchases. The company raised its full-year guidance, reflecting confidence in continued growth and margin expansion.
Key Financial Results
Record revenue, record operating profit, and record EPS were delivered in Q3 2025.
Revenue increased 9% year-over-year, with subscription revenue up 6%.
Adjusted EPS increased by 22%.
Adjusted margins would have been 51.6% excluding the contribution from OSTTRA.
The company delivered 330 basis points of year-on-year margin expansion to 52.1%.
Business Segment Results
Market Intelligence saw revenue acceleration on both a reported and organic basis.
Ratings revenue increased 12% year-over-year, driven by high-yield and bank loan issuance.
Commodity Insights revenue increased 6%, driven by Energy & Resources Data & Insights.
Mobility revenue grew 8% year-over-year, driven by strong performance in products such as CARFAX and automotiveMastermind.
S&P Dow Jones Indices revenue increased 11%, with double-digit growth in Asset-Linked Fees and Data & Custom Subscription revenue.
Capital Allocation
Nearly $1.5 billion was returned to shareholders through dividends and buybacks since the last earnings call.
An additional $2.5 billion share repurchase is expected to launch during the fourth quarter.
Approximately 85% of 2025 adjusted free cash flow will be returned to shareholders.
The acquisition of With Intelligence will be funded through a combination of $1 billion in incremental debt and cash on hand.
Industry Trends and Dynamics
Billed issuance increased 13% year-over-year, with strength in high-yield and structured finance.
Equity markets performed well, contributing to a strong quarter in the Indices business.
Volatility tempered from elevated levels in Q2, moderating ETD growth.
High-yield refinancing is pulling forward from the 2026 maturity wall.
Growth Opportunities and Strategies
Acquisition of With Intelligence to enhance private markets data offerings.
Strategic collaboration with Cambridge Associates and Mercer to deliver comprehensive private markets performance analytics.
Collaboration with Centrifuge to bring the S&P 500 Index on chain, expanding access to the benchmark.
Acquisition of ARC Research to add investment performance data and benchmarking capabilities in the private wealth market.
Continued investment in AI innovation, including AI-powered document search and Document Intelligence 2.0.
Partnerships with Microsoft, Anthropic, Google, Salesforce, and IBM to integrate S&P Global's data into their platforms.
Financial Guidance and Outlook
Total revenue growth is now expected in the range of 7% to 8%.
Adjusted margins are expected in the range of 50% to 50.5%.
Adjusted diluted EPS is expected in the range of $17.60 to $17.85, representing growth of 12% to 14% year-over-year.
Billed issuance growth in the mid-to-high teens range is expected in Q4.
US equity markets are assumed to be flat from September 30 through the end of the year.
Modest headwinds from sanctions are expected to impact Commodity Insights, contributing approximately $6 million in 2025 and $20 million in 2026.
