S&P Global -- How the Business Works
S&P Global is the dominant provider of credit ratings, financial data, commodity
benchmarks, and index products globally. The company operates five segments -- Market
Intelligence, Ratings, Commodity Insights, Indices, and Mobility -- each with oligopoly
or monopoly market positions. The IHS Markit merger (closed February 2022) transformed
SPGI into a broader data and analytics powerhouse, adding Commodity Insights and Mobility
to the existing Ratings, Market Intelligence, and Indices franchises. FY2025 revenue
reached $15,336M
with ~50% adjusted operating margins and ~$5B in annual free cash flow. A Mobility
spin-off is expected in mid-2026, creating a purer data/analytics/ratings RemainCo.
FY2025 Revenue
$15.3B
+7.9% YoY organic growth
Recurring Revenue
75%+
Subscription & asset-linked fees
Adj. Operating Margin
~50%
Q3 2025 hit 52.1% high watermark
IHS Markit Synergies
$311M
Run-rate vs $350M 2026 target
Revenue by segment -- five oligopoly/monopoly franchises
Revenue by Segment -- FY2025 ($M)
MI 32% -- $4,916M
Ratings 31% -- $4,724M
CI 15%
Idx 12%
Mob 11%
■ Market Intelligence $4,916M (32%)
■ Ratings $4,724M (31%)
■ Commodity Insights $2,299M (15%)
■ Indices $1,850M (12%)
■ Mobility $1,747M (11%)
Segment detail -- revenue, growth, and moat
| Segment | FY2025 Rev | % of Total | YoY Growth | Moat |
|---|---|---|---|---|
| Market Intelligence | $4,916M | 32% | +5.8% | CapIQ Pro, Kensho, iLevel -- strong data/analytics franchise |
| Ratings | $4,724M | 31% | +8.1% | Triopoly with Moody/Fitch (~96% of market); regulatory moat |
| Commodity Insights | $2,299M | 15% | +7.3% | Platts benchmarks are industry standard; pricing power |
| Indices | $1,850M | 12% | +13.6% | Monopoly on S&P 500 licensing; asset-linked fees |
| Mobility | $1,747M | 11% | +8.6% | CARFAX dominant in vehicle history; planned spin-off mid-2026 |
Segment deep dives
Ratings -- Triopoly with Regulatory Moat
S&P, Moody, and Fitch control ~96% of the global credit ratings market. The issuer-pays
model means companies must obtain ratings to access debt capital markets -- creating
mission-critical, non-discretionary demand. Regulatory designation as a Nationally
Recognized Statistical Rating Organization (NRSRO) creates an effective barrier to entry.
S&P holds ~40% market share. Revenue is correlated with debt issuance volumes, creating
cyclicality -- but the secular trend of growing global debt outstanding provides a durable
tailwind. FY2025 Ratings revenue of
$4,724M (+8.1% YoY).
Indices -- Monopoly Pricing Power, Highest Margins
The S&P 500 is the most tracked index in the world. SPGI earns asset-linked licensing
fees from ETFs, mutual funds, and exchange-traded derivatives that benchmark to its indices.
This is effectively a royalty on global passive investing -- the most powerful secular trend
in asset management. Operating profit margin of ~69%
($330M on
$498M Q4 revenue).
FY2025 Indices revenue of
$1,850M (+13.6% YoY)
-- the fastest-growing segment.
Market Intelligence -- Data/Analytics Franchise
The largest segment by revenue, Market Intelligence provides data, analytics, and workflow
tools through Capital IQ Pro, Kensho (AI), and iLevel (private markets). The franchise
benefits from high switching costs and deep integration into client workflows. ACV growth
accelerated from 6.0-6.5% in H1 2025 to 6.5-7.0% in H2 2025. Private markets revenue
grew 21% YoY in Q1 2025 to $140M. FY2025 MI revenue of
$4,916M (+5.8% YoY).
This is the segment where growth acceleration is most critical for the investment case.
Commodity Insights -- Platts Benchmarks
Platts price assessments are the industry standard for energy, metals, and agriculture
commodity pricing. These benchmarks are embedded in physical commodity contracts, creating
extraordinary pricing power and recurring revenue. The energy transition theme provides
a long-term tailwind as new commodity categories (carbon credits, hydrogen, lithium)
require benchmark pricing. FY2025 Commodity Insights revenue of
$2,299M (+7.3% YoY).
Mobility -- Spin-Off Catalyst (Mid-2026)
CARFAX is the dominant vehicle history report provider. The Mobility segment also includes
automotive data and analytics for dealers, insurers, and OEMs. A spin-off as "Mobility
Global" is expected in mid-2026, with an Investor Day scheduled May 12, 2026. The spin-off
creates a pure-play data analytics company and unlocks value for both entities. RemainCo
(ex-Mobility) would be ~$13.6B in revenue at ~50%+ margins. FY2025 Mobility revenue of
$1,747M (+8.6% YoY).
Management describes stranded costs as "relatively immaterial."
Competitive moat summary
| Moat Type | Segment | Description |
|---|---|---|
| Regulatory Moat | Ratings | NRSRO designation creates effective barrier to entry; issuer-pays model is mission-critical for capital markets access |
| Monopoly / Network Effect | Indices | S&P 500 is the most tracked index globally; asset-linked fees create a royalty on passive investing |
| Data Lock-In / Switching Costs | Market Intelligence | Capital IQ Pro deeply embedded in client workflows; iLevel integrated with PE/PC back-office systems |
| Standard-Setting | Commodity Insights | Platts benchmarks are embedded in physical commodity contracts; de facto standard for energy pricing |
| Brand / Data Dominance | Mobility | CARFAX is synonymous with vehicle history; dominant consumer and dealer mindshare |
IHS Markit merger -- integration scorecard
Revenue Synergies
$311M
Run-rate vs $350M 2026 target (89%)
Merger Closed
Feb 2022
~4 years of integration execution
Assessment
On Track
Well-executed integration
Vitality Index
10%+
New product revenue maintained at target
The IHS Markit merger (closed February 2022) was a transformational deal that created the current five-segment structure. Integration has been well-executed: $311M in run-rate revenue synergies achieved against a $350M 2026 target (89% complete), the Vitality Index (percentage of revenue from products launched in the last 3 years) has been maintained at or above the 10% target, and management has completed portfolio pruning (OSTTRA divestiture to KKR, With Intelligence acquisition). The Mobility spin-off is the final major portfolio action from the merger integration playbook.
Data sourced from Daloopa and earnings transcripts.