S&P Global (SPGI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $3.55 billion, up 14% year-over-year, with strong growth in Ratings and Indices divisions and all segments posting revenue and profit increases.

• Adjusted EPS rose 30% to $4.04, GAAP diluted EPS increased 102% to $3.23, and net income attributable to S&P Global Inc. grew 98% to $1.01 billion.

• CEO succession plan announced: Martina Cheung to become CEO November 1, 2024, succeeding Douglas L. Peterson.

• Closed Visible Alpha acquisition and announced Fincentric divestiture, both impacting Market Intelligence segment growth.

• Continued investment in AI, product innovation, and portfolio optimization, with new AI-powered product launches in Market Intelligence and Commodity Insights.

Financial highlights

• Q2 2024 revenue reached $3.55 billion (+14% YoY); adjusted diluted EPS was $4.04 (+30% YoY); operating profit up 59% to $1.45 billion.

• Adjusted operating margin expanded by 450 basis points to 50.7%; GAAP margin up over 1,100 bps to 40.9%.

• Free cash flow for H1 2024 was $2.3 billion, up 99% year-over-year.

• Three of five divisions achieved double-digit growth in both revenue and operating profit.

• Ratings transaction revenue up 63% year-over-year; non-transaction revenue up 9%.

Outlook and guidance

• Full-year 2024 revenue growth guidance raised to 8%-10%, with adjusted diluted EPS of $14.35-$14.60 and adjusted free cash flow guidance increased to ~$4.7 billion.

• S&P Global Ratings revenue growth outlook raised to 14%-16%; Indices revenue growth guidance increased to 10%-12%.

• Mobility revenue growth guidance narrowed to 8%-9% due to softness in recall business.

• Additional $1.5 billion in accelerated share repurchases planned.

• Macroeconomic assumptions include global GDP growth of 3.3% and US CPI of 3.0%.