SP Global 2025 Q2 Earnings Strong Performance with 6.9% Net Income Growth

S&P Global (SPGI), ranking 73rd by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The earnings exceeded analysts' expectations, with a notable beat on both revenue and earnings per share (EPS). The company raised its full-year guidance, projecting revenue growth of 5% - 7% and adjusted EPS between $17.00 - $17.25. This upward revision reflects S&P Global's strong performance in the second quarter and strategic initiatives, including investments in technology, AI, and customer engagement. The enhanced guidance underscores the company's confidence in maintaining operational excellence and expanding its market presence.

Revenue
S&P Global reported a 5.8% increase in total Q2 revenue, reaching $3.75 billion, compared to $3.55 billion in the previous year. Leading the growth were Market Intelligence, contributing $1.22 billion, and Ratings, adding $1.15 billion. Commodity Insights generated $555 million, while Mobility accounted for $438 million. Indices brought in $446 million. The revenue was adjusted for a $49 million intersegment elimination, leading to the final total of $3.75 billion.

Earnings/Net Income
The company’s earnings per share (EPS) rose by 8.4% to $3.50 in 2025 Q2, from $3.23 in the previous year’s quarter. Net income increased by 6.9% to $1.16 billion, up from $1.08 billion in 2024 Q2, highlighting S&P Global's robust earnings growth and sustained profitability for over 20 years in the corresponding fiscal quarter. EPS reflects stability and strong operational performance.

Price Action
The stock price of S&P Global has edged up 2.98% during the latest trading day, climbed 3.81% during the most recent full trading week, and increased 4.52% month-to-date.

Post-Earnings Price Action Review
Following the release of S&P Global's positive Q2 earnings, a strategy of purchasing shares on the revenue report date and holding for 30 days yielded moderate returns, yet underperformed compared to the broader market. The strategy's compound annual growth rate (CAGR) was 5.26%, lagging the benchmark by 56.57%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.22, the approach showcased low risk with modest returns, appealing to investors prioritizing stability. The results demonstrate that while the strategy provides consistent growth, it does not capture the full momentum of the market's upswing, requiring investors to weigh the trade-off between risk and potential reward.

CEO Commentary
"S&P Global delivered better than expected financial results in the second quarter, supported by execution in our customer initiatives and resilience in the debt and equity markets. We continued to demonstrate discipline and operational excellence, while striking a balance between expense management and investing for future growth. This approach has allowed us to make important investments in technology, AI, and products while expanding margins. Our commitment to elevating customer engagement and innovation across the enterprise continues to deliver value and garner positive feedback from clients." - Martina Cheung, President and CEO

Guidance
The Company updated its full-year 2025 guidance, projecting revenue growth of 5% - 7%, GAAP diluted EPS in the range of $14.35 - $14.60, and adjusted diluted EPS between $17.00 - $17.25. The expected corporate unallocated expense is revised to $285 - $295 million, with operating profit margins anticipated at 42.5% - 43.5% for GAAP and 48.5% - 49.5% for adjusted figures. Cash provided by operating activities, less capital expenditures, is expected to be $5.4 - $5.6 billion, with adjusted free cash flow projected at $5.6 - $5.8 billion.

Additional News
S&P Global announced significant leadership changes, appointing Bill Eager as President of S&P Global Mobility, effective August 15, 2025, as Mobility prepares to become a standalone public company. This strategic move aligns with the company's focus on AI and automation, enhancing its capability in the mobility sector. Furthermore, S&P Global plans additional share repurchases up to $1.3 billion in the coming weeks, reflecting its commitment to returning value to shareholders. The Board has authorized a quarterly cash dividend of $0.96, reinforcing its stable dividend policy and shareholder trust. These developments emphasize S&P Global's strategic growth and operational efficiency.