S&P Global (SPGI 0.59%), the financial data, research, and analytics provider behind credit ratings and well-known market benchmarks, reported financial results for Q2 2025 on July 31, 2025. The most important news from the release is clear: adjusted diluted earnings per share reached $4.43, surpassing the analyst estimate of $4.21 (non-GAAP), while GAAP revenue came in at $3.755 billion. Both adjusted and GAAP operating margins improved—an outcome bolstered by disciplined expense management even as certain market-driven segments slowed. Overall, it was a quarter highlighted by cost control, robust profits, and ongoing business portfolio realignment.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $4.43 | $4.21 | $4.04 | 10% |
| Revenue (GAAP) | $3.75 billion | $3.67 billion | $3.55 billion | 6% |
| Adjusted Operating Margin | 51.4% | 51% | 0.4 pp | |
| Adjusted Net Income | $1.356 billion | $1.267 billion | 7.0% | |
| Free Cash Flow (Non-GAAP) | $1.31 billion | $1.46 billion | -10.3% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
What S&P Global Does, and Where It’s Focusing Now
S&P Global delivers financial market intelligence, credit ratings, indices, and commodity pricing services. Its main activities include publishing creditworthiness ratings for debt issuers, producing index benchmarks such as the S&P 500, offering market analytics, and supplying price transparency to commodity markets.
The company’s recurring, subscription-driven revenue streams underpin its stability. Focus areas include investment in artificial intelligence-driven products, expansion in private markets data, and incorporating sustainability metrics into its analytics offerings. Success depends on customer retention, integration of technology, and resilience during shifts in global financial markets.
Quarter in Focus: Segment Performance, Margins, and Strategic Moves
Adjusted operating profit in this unit climbed 13%, supported by controlled expense growth and positive trends in customer renewal rates and sales pipelines.
The Credit Ratings segment, which provides credit scores and risk analysis for bond issuers, saw GAAP revenue rise 1% in Q2 2025. That result was held back by a drop in bond issuance, which management expects to remain “flat” over the remainder of 2025. Here, nearly half the unit’s revenue is now non-transactional—bringing more stability through research and surveillance products despite softer transaction (deal-based) activity. Adjusted operating profit margin for the Ratings segment was 66% for the three months ended June 30, 2025.
Commodity Insights, which supplies price benchmarks and market data for commodities and energy, posted GAAP revenue growth of 8% in Q2 2025. This segment benefited from subscription price assessments and new launches in climate risk analytics, biofuels, and agriculture data services. Although consolidation among energy companies meant some cancellations, demand for subscription data remained strong. Adjusted operating margin for Commodity Insights was 49% for the three months ended June 30, 2025.
Mobility, the automotive analytics business, increased GAAP revenue by 10% in Q2 2025, with dealer-focused products such as CARFAX (vehicle history reports) and Automotive Mastermind (auto dealer analytics) leading growth. Mobility’s exposure is mostly to the used car and subscription markets, which limits risk from recent auto tariffs. The company confirmed plans to spin off this business, naming Bill Eager as the unit’s future chief executive—a move meant to sharpen S&P Global’s focus on its core analytics and data products.
The Indices segment (including products like S&P Dow Jones Indices) rose 15% in revenue (GAAP) in Q2 2025, lifted by asset-linked fees from exchange-traded funds (ETFs), higher royalty income from derivatives, and increased demand for data products. However, With equity markets pulling back since early in the year, management expects growth in this area to moderate in the second half of 2025, lowering its full-year 2025 indices revenue outlook to 5–7%.
Both GAAP and adjusted operating margins expanded, up 0.4 and 0.7 percentage points, primarily due to growth and margin expansion in the Market Intelligence and S&P Dow Jones Indices divisions. S&P Global's OSTTRA joint venture divestiture remains on track for completion in 2025. The company initiated plans for accelerated share buybacks funded by divestiture proceeds in FY2025. Management aims to return roughly 85% of adjusted free cash flow to shareholders through dividends and share repurchases in FY2025.
The company noted higher corporate overhead due to restructuring. The board declared a regular dividend with no reported changes in the payout level. The quarterly dividend remained stable.
Looking Forward: Guidance and Points to Watch
S&P Global’s management updated its outlook to reflect broadening revenue sources and adjustments for divestitures. For FY2025, guidance now calls for company-wide revenue growth of 5–7%. Adjusted diluted EPS (non-GAAP) of $17.00–$17.25 for FY2025 (raising the lower bound by $0.25), and an adjusted operating margin of 48.5–49.5%. Management reaffirmed its full-year 2025 adjusted free cash flow expectation of $5.6–$5.8 billion. Capital spending of $180–$190 million for FY2025.
Investors should monitor the pace of bond issuance and equity market movements, as these directly affect Ratings and Indices revenues, respectively. The company expects a steady contribution from subscription-driven business lines and continued product innovation in artificial intelligence and sustainability analytics. Execution of the planned Mobility spin-off and the timing of the OSTTRA sale could influence financials in the coming quarters. The quarterly dividend was maintained at $0.96 per share in Q2 2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
