S&P Global (SPGI) Q2 EPS Jumps 10%

Core Insights - S&P Global reported Q2 2025 adjusted diluted earnings per share of $4.43, exceeding analyst estimates of $4.21, with GAAP revenue at $3.755 billion, reflecting disciplined expense management and improved operating margins [1][2] Financial Performance - Adjusted EPS (Non-GAAP) increased by 10% year-over-year from $4.04 to $4.43 [2] - GAAP revenue rose by 6% year-over-year from $3.55 billion to $3.75 billion [2] - Adjusted operating margin improved to 51.4%, up 0.4 percentage points from the previous year [2] - Adjusted net income grew by 7% year-over-year to $1.356 billion from $1.267 billion [2] - Free cash flow (Non-GAAP) decreased by 10.3% to $1.31 billion [2] Business Segments Overview - The Credit Ratings segment saw a 1% increase in GAAP revenue, with a 66% adjusted operating profit margin, despite a decline in bond issuance [6] - Commodity Insights reported an 8% growth in GAAP revenue, benefiting from subscription price assessments and new product launches, with a 49% adjusted operating margin [7] - Mobility's GAAP revenue increased by 10%, driven by dealer-focused products, with plans for a spin-off to enhance focus on core analytics [8] - The Indices segment experienced a 15% revenue increase, supported by asset-linked fees and higher demand for data products, although growth is expected to moderate in the second half of 2025 [9] Strategic Focus and Future Outlook - The company is focusing on artificial intelligence-driven products, private markets data, and sustainability metrics [4] - Management updated FY2025 guidance to reflect revenue growth of 5–7%, with adjusted diluted EPS expected between $17.00 and $17.25 [12] - The company plans to return approximately 85% of adjusted free cash flow to shareholders through dividends and share repurchases [10] - The quarterly dividend remains stable at $0.96 per share [13]