S&P Global(US:SPGI) 247Wallst·2026-02-15 15:21Core Viewpoint - S&P Global's stock has dropped 25% in one month due to disappointing 2026 earnings guidance, despite solid revenue growth and strong cash flow, raising questions about whether it represents a buying opportunity [1] Financial Performance - S&P Global reported revenue of $3.92 billion, a 9% year-over-year increase, surpassing the expected $3.91 billion [1] - Non-GAAP earnings rose 14% to $4.30 per share, slightly below the forecast of $4.32 per share [1] - The company achieved a free cash flow margin of 39%, indicating strong cash generation capabilities [1] Business Segments - The company operates four main segments: - Global Commodity Insights and Engineering Solutions, providing specialized energy and commodities data - S&P Global Market Intelligence, offering data and analytics for investors - Dow Jones Indices, managing benchmarks tied to trillions in assets - Global Ratings, delivering key credit ratings for financial markets [1] Dividend and Valuation - S&P Global has a history of over 50 consecutive years of dividend increases, with a current yield of approximately 0.92% and a 10-year dividend growth rate of 10.3% [1] - The stock is currently trading at 21 times earnings estimates, the lowest valuation in five years, compared to a historical average of 30 times [1] Market Sentiment and Guidance - The company's guidance for adjusted earnings of $19.40 to $19.65 per share fell short of the $19.96 consensus, contributing to negative market sentiment [1] - S&P Global's stock has decreased 24% over the past year and nearly 22% year-to-date, reflecting broader selling pressure in the software sector [1] Competitive Advantage - Unlike typical software firms, S&P Global possesses unique, hard-to-replicate data assets, which are less susceptible to competition from AI [1] - Analysts project a 40% upside for the stock, with an average price target of $576 per share, despite recent downward adjustments [1]