S&P Global reported a strong first quarter with robust revenue growth and margin expansion across all divisions, driven by key segments like Ratings and Market Intelligence. The company is navigating a volatile environment effectively, seeing increased customer engagement and adoption of AI functionalities.
Total revenue increased 10% year over year to $4.171 billion, driven by strong growth in Ratings and Market Intelligence.
positiveGAAP operating margin increased 620 basis points to 48.0%, and adjusted operating margin increased 100 basis points to 51.8%.
positiveGAAP diluted EPS increased 32% to $4.69, and adjusted diluted EPS increased 14% to $4.97.
positiveCompany expects to return 100% or more of adjusted Free Cash Flow through dividends and share repurchases in 2026.
positiveReported Revenue growth guidance for FY2026 is now expected to be approximately 30 basis points lower than previous guidance, primarily due to lower expected tailwinds from FX.
attentionInterest expense, net is now expected to be approximately $10 million higher than prior guidance for FY2026.
attentionMarket Intelligence expenses decreased 13% YoY, while revenue increased 8% YoY, indicating potential margin pressure in this segment despite overall company margin expansion.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Market Intelligence | N/A | — | — | — | +6.0% |
Ratings | N/A | — | — | — | +11.0% |
Energy | N/A | — | — | — | +7.0% |
Mobility | N/A | — | — | — | +7.0% |
Indices | N/A | — | — | — | +16.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We are pleased with the results we achieved in the first quarter, with strong revenue growth and margin expansion in every division, demonstrating our ability to execute and deliver against our strategic vision in an incredibly volatile and challenging operating environment.
Everything we see reinforces the relevance of our vision as customers turn to us with an even greater sense of urgency in times like these.
We are also seeing fast-paced adoption of our AI functionality and are advancing our leadership as we rapidly innovate and partner to help customers unlock the potential of AI.
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