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.