Financial Data and Key Metrics Changes - Revenue increased by 6% year over year, with subscription revenue rising by 7% [7][30] - Adjusted diluted EPS grew by 10% [30] - Adjusted expenses increased by 2% year over year, primarily due to higher compensation and currency translation [35][41] Business Line Data and Key Metrics Changes - Market Intelligence reported a revenue increase of 5%, with organic constant currency growth at 7% [34] - Private markets revenue grew by 11% year over year to $148 million, driven by demand for middle market CLOs and project finance ratings [31] - Ratings revenue increased by 1% year over year, with non-transaction revenue up by 8% [37] - Commodity Insights revenue increased by 8%, with Energy Resources, Data and Insights growing by 10% [38] - Mobility revenue increased by 10% year over year, with dealable revenue up by 11% [42] Market Data and Key Metrics Changes - Build issuance declined by 4% year over year, but there was a recovery in June, marking the second highest June since 2019 [16][17] - U.S. equity markets rebounded quickly from lows seen in April, benefiting from strong net inflows for indices [18] - The outlook for the rest of the year assumes flat build issuance and flat U.S. equity markets from June 30 [18] Company Strategy and Development Direction - The company is focusing on strategic investments while maintaining disciplined expense management, resulting in 150 basis points of margin expansion [7] - There is a strong emphasis on expanding leadership in artificial intelligence and enhancing product offerings [9][23] - The company is pursuing opportunities in private credit as part of its broader private markets initiative [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong results in the second half of the year, despite uncertainties in the market [28][47] - The company anticipates one to two rate cuts from the U.S. Fed in the second half of the year, with slow but positive GDP growth expected [18] - Management remains cautious about the potential for volatility in the market, particularly regarding refinancing and M&A activities [86] Other Important Information - The company announced the appointment of Bill Eager as President of S&P Global Mobility and CEO Designate for the planned standalone public company [10] - The company is on track with the separation of the mobility business and will keep investors updated on progress [93] Q&A Session Summary Question: About the acceleration in organic growth in Market Intelligence - Management highlighted the transformation in Market Intelligence, focusing on structure, operating model, and incentive plans to sustain growth [54][56] Question: On margin and expense management - Management noted ongoing productivity improvements and strategic investment patterns as key factors in achieving better expense management [61][62] Question: About the Chief Client Office and criteria for moving strategic clients - Management explained that the Chief Client Office focuses on delivering individualized attention to a select group of strategic clients [65][66] Question: On competitive dynamics in private credit - Management emphasized the importance of consistent methodology and strong engagement with major private market participants to maintain leadership in private credit [78][80] Question: Regarding the second half ratings revenue assumption - Management indicated caution due to market volatility and a flat refinancing environment, while acknowledging potential upside surprises [84][86] Question: On milestones for the mobility spin-off - Management outlined internal and external milestones, including regulatory submissions and the naming of the management team [90][93] Question: About revenue guidance for mobility and potential pull forward - Management clarified that while there may be some pull forward, strong performance in the Carfax business is a key driver of growth [96][99] Question: On sanctions and upstream business growth - Management discussed the impact of sanctions on revenue and acknowledged the challenges faced by the upstream business [101]