S&P Global(US:SPGI)2025-10-30 20:56Revenue Growth - Revenue for the three months ended September 30, 2025, was $3,888 million, representing a 9% increase from $3,575 million in 2024[138]. - For the nine months ended September 30, 2025, revenue increased by 8% to $11,420 million, up from $10,616 million in 2024[138]. - U.S. revenue accounted for 61% of total revenue, amounting to $2,362 million, a 9% increase from $2,176 million in 2024[152]. - International revenue totaled $1,526 million, a 9% increase from $1,399 million, with Europe contributing $885 million, up 10%[152]. - Revenue for the three months ended September 30, 2025, increased by 6% to $1,236 million compared to $1,162 million in 2024, driven by subscription revenue growth[196]. - Ratings segment revenue for the three months ended September 30, 2025, increased by 12% to $1,240 million, compared to $1,110 million in 2024[206]. - Revenue for Commodity Insights increased 6% in the three months ended September 30, 2025, driven by demand for market data and insights[217]. - Mobility's revenue increased 8% in the three months ended September 30, 2025, primarily due to growth in the Dealer and Financial businesses[225]. - Revenue increased by 13% for the nine months ended September 30, 2025, driven by higher asset-linked fees, exchange-traded derivative revenue, and data subscription revenue[237]. Operating Profit - Operating profit for the same period increased by 17% to $1,675 million, compared to $1,434 million in 2024[138]. - Operating profit for the nine months increased by 12% to $4,804 million, compared to $4,271 million in 2024[138]. - Total segment operating profit increased by 18% to $1,765 million in 2025 from $1,496 million in 2024[172]. - Market Intelligence segment operating profit rose by 20% to $277 million in 2025, while Ratings increased by 21% to $819 million[172]. - Operating profit for the three months ended September 30, 2025, was $317 million, reflecting a 12% increase compared to the same period in 2024[234]. - Operating profit for the nine months ended September 30, 2025, increased by 15%, primarily due to revenue growth and decreased incentive costs[238]. Expenses - Total operating-related expenses for the three months were $1,102 million, a 5% increase from $1,050 million in 2024[160]. - Operating-related expenses for the nine months increased by 4% to $3,342 million, primarily due to higher compensation costs[166]. - Selling and general expenses decreased by 1% to $730 million, with a notable impact from higher employee severance charges[162]. - Selling and general expenses increased by 4%, with a 3% increase excluding specific charges and costs[168]. - Corporate Unallocated expense increased by 33% to $97 million in 2025, primarily due to higher compensation costs[174]. Cash Flow and Financing - Cash, cash equivalents, and restricted cash were $1,672 million as of September 30, 2025, an increase of $6 million from December 31, 2024[241]. - Free cash flow decreased by $125 million to $3,520 million for the first nine months of 2025 compared to $3,645 million in the same period of 2024[242]. - Cash used for financing activities increased by $448 million to $3,728 million for the first nine months of 2025, primarily due to increased share repurchases[248]. - The company purchased a total of 4.3 million shares for $2.5 billion during the nine months ended September 30, 2025[249]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $3,903 million, slightly down by 1% from $3,949 million in 2024[263]. - Cash used for financing activities increased by 14% to $3,728 million in the nine months ended September 30, 2025, compared to $3,280 million in 2024[263]. Strategic Initiatives - The company announced a full separation of its Mobility segment, expected to be completed within 12 to 18 months, creating a new publicly traded company[135]. - The company aims to integrate generative AI into its products and enhance customer support and user experience as part of its strategic priorities[147]. - The company completed the acquisition of TeraHelix on June 6, 2025, enhancing its Market Intelligence segment, although this acquisition is not material to consolidated financial statements[192]. - The acquisition of With Intelligence for $1.8 billion is expected to close in 2025 or early 2026, aiming to create a comprehensive data offering for private markets[191]. - The company expects to close the acquisition of ORBCOMM's AIS data services business in 2025, which will enhance maritime visibility and support business intelligence[193]. Foreign Exchange Impact - Foreign exchange rates positively impacted revenue growth by 1 percentage point for both the three and nine months ended September 30, 2025[139][142]. - The favorable impact of foreign exchange rates contributed an additional 1 percentage point to revenue growth[156]. - Revenue increased 12% in the three months ended September 30, 2025, with a favorable impact from foreign exchange rates of 2 percentage points[207]. - The company has entered into foreign exchange forward contracts to hedge against adverse fluctuations in foreign exchange rates as of September 30, 2025[271]. - The company anticipates potential impacts on revenue and net income due to fluctuations in foreign currency exchange rates and changes in applicable tax or accounting requirements[268].