S&P Global(US:SPGI)2025-10-30 13:32Financial Data and Key Metrics Changes - The company reported record revenue, operating profit, and EPS for Q3 2025, with revenue increasing by 9% year-over-year and adjusted EPS growing by 22% [6][24]. - Subscription revenue rose by 6%, contributing to the overall revenue growth [6]. - The company returned nearly $1.5 billion to shareholders through dividends and buybacks since the last earnings call, with an additional $2.5 billion share repurchase expected in Q4 [6][7]. Business Line Data and Key Metrics Changes - Ratings revenue increased by 12% year-over-year, driven by strong demand in high yield and structured finance [31]. - Market Intelligence saw an 8% organic constant currency growth, marking the strongest growth in six quarters, with double-digit growth in volume-driven products [29]. - Commodity Insights revenue grew by 6%, supported by double-digit growth in energy and resources data [33]. Market Data and Key Metrics Changes - Bond issuance increased by 13% year-over-year, particularly in high yield and structured finance [10]. - The equity markets performed well, contributing to a strong quarter in the Indices business [10]. - The company expects bond issuance growth in the mid to high teens range for Q4 2025 [12]. Company Strategy and Development Direction - The company is focused on strategic investments, innovation, and disciplined execution, with a multi-pronged approach to growth including acquisitions and partnerships [7][8]. - The planned acquisition of With Intelligence aims to enhance the company's data offerings in private markets, allowing for better benchmarking and performance analytics [13][14]. - The company is committed to portfolio optimization and may continue to make tactical divestitures [9]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market conditions, noting strong investor demand and resilient market sentiment [31]. - The outlook for the ratings business remains positive, with expectations of continued growth driven by favorable market conditions [60]. - The company anticipates that AI innovations will significantly contribute to both revenue growth and margin expansion in the future [70][74]. Other Important Information - The company announced the divestiture of its enterprise mata Management and thinkFolio businesses as part of its portfolio optimization strategy [8][9]. - Recent leadership changes were noted, including the retirement of Mark Eramo and the appointment of Catherine Clay as the new CEO of S&P Dow Jones Indices [9][10]. Q&A Session Summary Question: Market Intelligence organic growth of 8% - Management attributed the growth to strong execution, product innovation, and alignment within the sales teams, leading to competitive wins [46][49]. Question: Ratings issuance normalization and growth outlook - Management noted that growth exceeded expectations, with a strong outlook for Q4 driven by opportunistic issuance and a healthy maturity wall [57][60]. Question: Role of AI in Market Intelligence margins - Management highlighted that AI investments have positioned the company well for growth and productivity, with ongoing innovations expected to drive margin expansion [68][74]. Question: Strength of private markets growth - Management reported strong performance in private markets driven by ratings issuance and partnerships, enhancing the company's data capabilities [77][80]. Question: Size of EDM and ThinkFolio divestiture - Management indicated that the divestitures were not material to consolidated financials but would be slightly accretive to revenue growth and margins in 2026 [83][84]. Question: AI defensiveness in Market Intelligence - Management expressed confidence that nearly 90% of Market Intelligence revenue is derived from proprietary sources, providing a strong competitive advantage [88].