AI Analysis

Generated: 3 weeks ago. (Likely Outdated!)

S&P Global Inc. (Ticker: SPGI) is a powerhouse in the world of financial information, providing essential data, ratings, and benchmarks that help businesses, governments, and investors make informed decisions. Think of them as the trusted scorekeeper and data provider for global markets.

The Business Model (How They Make Money)

S&P Global makes its money primarily by selling access to its valuable information, analytics, and expert opinions, largely through subscriptions. Their core business is built on providing critical insights across various sectors.

As of their full-year 2025 results, S&P Global reported total revenue of $15.336 billion. Their main ways of earning this money come from several key divisions:

  • Market Intelligence: This segment provides data, research, and analytics on companies, markets, and industries. It was their largest segment in 2025, generating $4.92 billion, which was about 37.14% of their total revenue.
  • Ratings: This division is famous for assessing the creditworthiness of companies and governments, helping investors understand risk. This segment brought in $4.72 billion in 2025.
  • Indices: This is where the well-known S&P 500 index comes from. S&P Global earns money by licensing these indices for use in investment products like exchange-traded funds (ETFs). This segment generated $1.85 billion in 2025, representing approximately 13.98% of their total revenue.
  • Energy: This segment provides data and insights for the energy and commodities markets.

It's important to note that S&P Global spun off its Mobility division in mid-2026, meaning future financial reports will reflect a company without that segment. The company's revenue streams are largely recurring, coming from subscriptions and fees tied to the assets that track their indices.

The Metrics That Matter Most

For a company like S&P Global, which thrives on providing essential, often subscription-based, information, certain financial metrics give us the best picture of its health and growth.

  1. Revenue: This is the total amount of money the company brings in from selling its services. For S&P Global, consistent revenue growth shows that more customers are buying their data, ratings, and indices, or that existing customers are paying more for these valuable services. In 2025, S&P Global's revenue increased by 8% year-over-year to $15.336 billion. For the second quarter of 2026, the company reported revenue of $4.15 billion, showing roughly 10% year-over-year growth across all segments.
  2. Net Income: This metric tells you how much profit the company actually made after paying all its expenses, including taxes. It's the bottom line and shows the company's overall profitability. In 2025, S&P Global's GAAP net income increased by 16% to $4.471 billion. For Q2 2026, net income was $1.22 billion.
  3. Operating Margin: This percentage shows how much profit S&P Global makes from its core business operations for every dollar of revenue, before accounting for interest and taxes. A high and stable operating margin is crucial for an information services company because it indicates efficient management of costs and strong pricing power for its valuable data and services. In 2025, S&P Global's adjusted operating margin expanded by 140 basis points to 50.4%.
  4. Free Cash Flow: This is the cash a company generates after paying for its operating expenses and capital expenditures (investments in things like property and equipment). It's the cash truly "free" for things like paying down debt, issuing dividends, or buying back shares. For S&P Global, strong free cash flow indicates its ability to return value to shareholders and invest in future growth without relying on external financing. In 2025, the company returned $6.2 billion to shareholders, including $1.2 billion in dividends and $5.0 billion in share repurchases, which represented 113% of adjusted free cash flow for the year.

How to Value This Company

For a stable, profitable company like S&P Global, which generates consistent earnings from its subscription-based services, the P/E ratio (Price-to-Earnings ratio) is a very useful valuation metric.

The P/E ratio simply compares the company's current stock price to its earnings per share (EPS). In plain English, it tells you how much investors are willing to pay for each dollar of S&P Global's annual earnings.

Here's why it's a good fit: S&P Global is a mature company with a predictable business model and a history of generating profits. When you look at the P/E ratio, you can compare it to S&P Global's historical P/E, or to the P/E ratios of similar companies in the financial information industry. If S&P Global's P/E ratio is lower than its historical average or its competitors, it might suggest the stock is "cheap" or undervalued. If it's higher, it might suggest the stock is "expensive" or overvalued. This helps a beginner understand if they are paying a reasonable price for the company's earnings power. In 2025, S&P Global's GAAP diluted earnings per share was $14.66, and adjusted diluted earnings per share was $17.83. For 2026, adjusted diluted EPS is guided to be in the range of $19.40 to $19.65.

鈿狅笍 Disclaimer: This analysis is generated by AI. stockpicker.tech is not responsible for any mistakes, inaccuracies, or hallucinations. This is for educational purposes only and does not constitute financial advice. Users should always double-check the information and conduct their own research before making investment decisions.

Log in to generate a MOAT report for this stock.

Log in to generate an earnings report for this stock.

Log in to generate an operating leverage report for this stock.

Log in to generate a management report for this stock.

Log in to generate a valuation report for this stock.

S&P Global Inc.

$429.64 -$83.02 (-16.19%)
NYSE 路 16 Oct 2026 20:00 UTC
Previous Close
$424.81
Day Range
$425.46$433.67
Year Range
$361.03$552.25
Market Cap
126.66B
AVG Volume
2.08M
Trailing/Forward PE
26.15/21.25
PEG ratio
4.65
Dividend Yield
0.90%
Next Earnings Date
2026-10-27
Primary Exchange
New York Stock ExchangeUS
Revenue (USD) 路 Q
02B4B6B24 Q124 Q224 Q324 Q425 Q125 Q225 Q325 Q426 Q126 Q2
SPGI Revenue (USD) by quarter
PeriodRevenue (USD)
26 Q24.15B
26 Q14.17B
25 Q43.92B
25 Q33.89B
25 Q23.75B
25 Q13.78B
24 Q43.59B
24 Q33.58B
24 Q23.55B
24 Q13.49B
Net Income (USD) 路 Q
0500M1B1.5B24 Q124 Q224 Q324 Q425 Q125 Q225 Q325 Q426 Q126 Q2
SPGI Net Income (USD) by quarter
PeriodNet Income (USD)
26 Q21.22B
26 Q11.4B
25 Q41.13B
25 Q31.18B
25 Q21.07B
25 Q11.09B
24 Q4880M
24 Q3971M
24 Q21.01B
24 Q1991M
Operating Income (USD) 路 Q
01B2B3B24 Q124 Q224 Q324 Q425 Q125 Q225 Q325 Q426 Q126 Q2
SPGI Operating Income (USD) by quarter
PeriodOperating Income (USD)
26 Q22.11B
26 Q12B
25 Q41.67B
25 Q31.68B
25 Q21.55B
25 Q11.58B
24 Q41.31B
24 Q31.43B
24 Q21.45B
24 Q11.39B
EBITDA 路 Q
Cash Flows 路 Q
EPS 路 Q
Expenses 路 Q
Cash & Debt 路 Q
Debt ratios 路 Q
Margins 路 Q
Return on Capital 路 Q
Shares Outstanding 路 Q
Dividends (USD) 路 Q
Employee Count
Book Value Per Share 路 Q
Total Assets 路 Q
PE Ratio
Free Cash Flow Yield
Price to Sales
EV/EBITDA
Price/Operating Cashflow
Price to Book
S&P Global Inc.
SPGI
Stockpicker

Video analysis: SPGI

All videos

Want a deeper dive on this stock? Request a new video analysis from our team.

Your email is used only to follow up on this request. We do not add you to marketing lists. Privacy Policy

News: SPGI

Similar companies

Disclaimer: The historical data presented on this platform is provided by Financial Modeling Prep. Stock Picker is a platform for informational purposes only and does not provide financial advice. Users are encouraged to conduct their own research and consult with a qualified financial advisor before making investment decisions.