S&P Global (SPGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 16% year-over-year to $3.575B, with net income up 31% to $971M and GAAP diluted EPS up 33% to $3.11, driven by strong Ratings and Indices growth.

• Adjusted net income rose 18% to $1.21B and adjusted diluted EPS increased 21% to $3.89; adjusted operating margin expanded 180 bps to 48.8%.

• S&P Global repurchased $2B in shares YTD, with $1.3B more planned by year-end.

• Announced CEO transition and new executive leadership, including CFO Eric Aboaf joining in 2025.

• Closed Fincentric divestiture in August; PrimeOne divestiture expected soon, both reflected in updated guidance.

Financial highlights

• Q3 2024 revenue: $3.575B (+16% y/y); adjusted operating profit: $1.744B (+20% y/y); GAAP operating margin up 530 bps to 40.1%.

• Adjusted diluted EPS: $3.89 (+21% y/y); adjusted net income: $1.21B (+18% y/y).

• Free cash flow for nine months: $3.65B (+76% y/y); 2024 guidance raised to $5.2B.

• Adjusted expenses increased 12% due to incentive compensation and commissions.

• Weighted-average diluted shares outstanding in Q3 were 311.5M, down from 318.0M a year ago.

Outlook and guidance

• 2024 revenue growth outlook raised to 11.5%-12.5%; adjusted diluted EPS guidance increased to $15.10-$15.30.

• Adjusted margin expansion expected at 200-250 bps; GAAP operating margin expansion 600-650 bps.

• 2024 free cash flow guidance raised to $5.2B; capital expenditures expected at $160-$170M.

• Division revenue growth guidance: Ratings 26%-28%, Market Intelligence 6%-6.5%, Commodity Insights 9%-9.5%, Mobility 8%-8.5%, Indices 13%-15%.

• Guidance includes impact of Visible Alpha acquisition, Fincentric divestiture, and expected PrimeOne divestiture.