Financial Trends -- 8.5/10
SPGI delivers consistent revenue growth (~8% organic CAGR since 2023), accelerating adj.
EPS compounding (+13-14% annually), and expanding adj. operating margins that hit a 52.1%
high watermark in Q3 2025. FCF conversion remains excellent at ~34% of revenue ($5.1B in
FY2025). FY2026 guidance of $16.3-$16.7B revenue and $19.40-$19.65 EPS came in slightly
below consensus, causing a brief negative market reaction, but the underlying trajectory
remains strong across all five segments.
Weight: 25%
FY2025 Revenue
$15.3B
+7.9% YoY | ~8% organic CAGR
Adj. Diluted EPS
$17.83
+13.6% YoY | compounding 13-14%
Free Cash Flow
$5.1B
~34% of revenue | excellent conversion
Adj. Op. Margin (Q3 25)
52.1%
High watermark | +330bps YoY
Annual Financial Summary (FY2021 - FY2025, $M)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|
| Total Revenue | $8,297M | $11,181M | $12,497M | $14,208M | $15,336M |
| YoY Growth | — | +34.8%* | +11.8% | +13.7% | +7.9% |
| Adj. Diluted EPS | $13.70 | $11.19 | $12.59 | $15.70 | $17.83 |
| YoY EPS Growth | — | -18.3%* | +12.5% | +24.7% | +13.6% |
| GAAP Diluted EPS | $12.51 | $10.53 | $8.23 | $12.35 | $14.66 |
| FCF | $3,336M | $2,244M | $3,287M | $5,278M | $5,135M |
| Adj. FCF ex-items | — | $3,955M | $4,057M | $5,704M | $5,481M |
*FY2022 includes IHS Markit merger impact (closed Feb 2022); revenue jump is inorganic.
EPS dip reflects merger-related dilution/costs.
Quarterly Revenue by Segment ($M)
| Metric | Q1 24 | Q2 24 | Q3 24 | Q4 24 | Q1 25 | Q2 25 | Q3 25 | Q4 25 |
|---|
| Ratings | $1,062M | $1,135M | $1,110M | $1,062M | $1,149M | $1,148M | $1,240M | $1,187M |
| Market Intelligence | $1,142M | $1,155M | $1,162M | $1,186M | $1,199M | $1,217M | $1,236M | $1,264M |
| Commodity Insights | $559M | $516M | $522M | $545M | $612M | $555M | $556M | $576M |
| Indices | $387M | $389M | $416M | $436M | $445M | $446M | $462M | $498M |
| Mobility | $386M | $400M | $412M | $411M | $420M | $438M | $445M | $444M |
| Total Revenue | $3,491M | $3,549M | $3,575M | $3,592M | $3,777M | $3,755M | $3,888M | $3,916M |
| YoY Total Rev Growth | — | — | — | — | +8.2% | +5.8% | +8.8% | +9.0% |
Quarterly Adjusted Diluted EPS and Operating Margin
Segment Operating Profit ($M, Select Quarters)
Indices has the highest operating profit margin at ~69%. Ratings Q4 2025 operating profit of
$723M grew +15.3% YoY.
MI margin of ~33-34% is improving but remains the lowest among segments.
Consensus Estimates (FY2026)
| Metric |
FY2026E (Consensus) |
FY2026E (Company Guidance) |
| Revenue |
~$16.5B |
$16.3B-$16.7B (organic CC growth 6%-8%) |
| Adj. Diluted EPS |
~$19.90 |
$19.40-$19.65 |
| Adj. FCF |
— |
~$5.5B-$6.0B |
FY2026 guidance came in slightly below consensus, causing a negative market reaction in February
2026. Management is likely being prudently conservative in a tariff-uncertain macro environment.
Key trends
- Revenue growth is consistent and broad-based: ~8% organic CAGR since 2023, with all five segments growing in FY2025. Q4 2025 total revenue growth accelerated to +9.0% YoY
- Adj. EPS compounding at 13-14% annually: From $12.59 in FY2023 to $17.83 in FY2025, driven by revenue growth, margin expansion, and buybacks
- Margin expansion is real and continuing: Adj. operating margin expanded YoY in every quarter of FY2025, with Q3 2025 hitting a 52.1% high watermark (+330bps YoY). Q4 2025 saw a slight pullback to 47.3% due to MI investment pull-forward (~80bps impact)
- FCF conversion excellent at ~34% of revenue: $5.1B in FY2025, slightly below $5.3B in FY2024 due to timing. Adj. FCF ex-items was $5.5B in FY2025 vs $5.7B in FY2024
- Indices is the standout growth engine: +13.6% YoY in FY2025 with ~69% operating margins, benefiting from passive investing tailwinds and asset-linked fee growth
Score rationale
8.5/10. SPGI delivers a financial profile that is exceptional among large-cap companies: ~8% organic revenue growth, 13-14% EPS compounding, ~50% adjusted operating margins, and ~$5B+ in annual FCF. The trajectory is consistent and improving -- Q3 2025 hit a 52.1% margin high watermark, all five segments are growing, and ACV acceleration in MI provides confidence in the 2026 growth trajectory.
The score does not reach 9 or 10 because: (a) FY2026 guidance came in slightly below consensus, signaling potential conservatism or genuine near-term headwinds; (b) FCF was modestly lower in FY2025 vs FY2024 ($5.1B vs $5.3B); (c) MI organic growth at ~5-6% is the slowest segment and the most watched metric; and (d) the FY2022 EPS dip from the IHS Markit merger dilution creates a less clean compounding profile over the 5-year lookback. Overall, this is a best-in-class financial profile with minor blemishes.
Data sourced from
Daloopa and company filings. All financials in USD ($).