S&P Global (SPGI) Q1 2025 earnings summary

Executive summary

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

• Adjusted diluted EPS increased 9% to $4.37, and operating profit rose 10% to $1.92 billion, with margin expansion of 240 basis points on a trailing 12-month basis.

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

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

• Signed a definitive agreement to divest the OSTTRA joint venture to KKR for $3.1 billion, expected to close in the second half of 2025.

Financial highlights

• Q1 2025 revenue was $3.777 billion (+8% y/y); adjusted operating profit was $1.92 billion (+10% y/y); adjusted diluted EPS was $4.37 (+9% y/y).

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

• Trailing 12-month adjusted operating margin reached a record 49.3%; GAAP operating margin increased to 41.8%.

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

• Free cash flow was $816 million, down 4% due to higher capital expenditures and distributions.

Outlook and guidance

• 2025 total revenue growth expected at 4%-6%, with adjusted operating margin guidance 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.

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

• 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.