S&P Global Stock Drops After Mixed Q4 Results

Core Viewpoint - S&P Global reported solid fourth-quarter results despite softer guidance for 2026, with strong performance across all divisions and a notable increase in adjusted earnings and revenue [2][3][4]. Group 1: Q4 Results and Performance - The company reported adjusted earnings of $4.30 per share, slightly below the analysts' expectation of $4.32, while revenue reached $3.916 billion, exceeding estimates and reflecting a 9% increase year-over-year [2]. - GAAP diluted EPS rose 32% to $3.75, and the adjusted operating margin improved to 47.3% [3]. - All five business segments experienced revenue growth, with Ratings up 12%, Indices up 14%, Market Intelligence up 7%, Energy up 6%, and Mobility up 8% [3]. Group 2: Future Guidance - For 2026, S&P Global projected adjusted earnings between $19.40 and $19.65 per share, below the consensus estimate of $19.79, and expects revenue between $16.348 billion and $16.655 billion, with organic constant-currency growth of 6% to 8% [2]. - The company anticipates adjusted operating margins to expand by 10 to 35 basis points in 2026, or 50 to 75 basis points excluding OSTTRA [4]. Group 3: Shareholder Returns and Stock Performance - In 2025, S&P Global generated $15.336 billion in revenue, an 8% increase, and reported adjusted diluted EPS of $17.83, up 14% [4]. - The company returned $6.2 billion to shareholders through dividends and buybacks, exceeding its adjusted free cash flow [4]. - S&P Global shares were down 7.64% at $410.26, trading at a new 52-week low [5].