S&P Global (SPGI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 8% year-over-year to $3.78 billion, with all five divisions contributing to growth and net income rising 10% to $1.09 billion.

• Adjusted diluted EPS increased 9% to $4.37, and adjusted operating profit rose 10% year-over-year; GAAP diluted EPS up 12% to $3.54.

• Announced intent to spin off the Mobility division as a standalone public company within 12–18 months, aiming for a tax-free transaction and enhanced strategic focus.

• Planned divestiture of OSTTRA joint venture for $3.1 billion, expected to close in H2 2025.

• Over $900 million returned to shareholders via dividends and repurchases in Q1.

Financial highlights

• Organic constant currency revenue growth was 9% in Q1; recurring revenue accounted for 75% of total revenue.

• Adjusted operating margin expanded 100 bps to 50.8% year-over-year; GAAP operating margin increased to 41.8%.

• Subscription product revenue grew 7% year-over-year.

• Free cash flow was $816 million, with cash and equivalents at $1.47 billion at quarter-end.

• Net income attributable to S&P Global was $1.09 billion, with adjusted net income at $1.344 billion.

Outlook and guidance

• 2025 total revenue growth expected at 4%-6%, with adjusted margins of 48.5%-49.5%.

• Adjusted diluted EPS guidance set at $16.75-$17.25; GAAP diluted EPS guidance raised to $14.60–$15.10.

• Division revenue outlook: Market Intelligence 5%-6.5%, Ratings 3%-5%, Commodity Insights 7%-8.5%, Mobility 0%-4%, Indices 7%-8.5%.

• Guidance reflects anticipated OSTTRA divestiture and Mobility separation.

• Adjusted free cash flow guidance lowered to $5.6–$5.8 billion due to changes in cash taxes, net income, and working capital assumptions.