Markets have been very volatile through the first four months of 2026, with a first-quarter correction in the Nasdaq Composite (^IXIC +1.29%) followed by a 15% surge in April. But it didn't seem to hinder S&P Global (SPGI 1.89%), which delivered a strong first-quarter earnings report.
S&P Global saw revenue rise 10% year over year in Q1 to $4.2 billion. Net income jumped 28% to $1.4 billion, while earnings per share increased 32% to $4.69. Both revenue and earnings beat earnings estimates.
In fact, volatility seems to be providing a lift for some of S&P Global's businesses, including its largest.
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Strong Q1 results for S&P Global
S&P Global, of course, produces the S&P 500 (^GSPC +0.74%) and other market indexes. But it also has two other major businesses: its credit rating agency and its market intelligence division. All three businesses performed well in the first quarter.
"We are pleased with the results we achieved in the first quarter, with strong revenue growth and margin expansion in every division, demonstrating our ability to execute and deliver against our strategic vision in an incredibly volatile and challenging operating environment," Martina Cheung, president and CEO, said.
NYSE: SPGI
Key Data Points
The index business saw revenue surge 17% year over year to $519 million, while operating profit jumped 18% to $372 million. The market intelligence arm saw revenue climb 8% to $1.3 billion, while profits doubled to $440 million. But the biggest boost to the bottom and top lines came from the credit ratings business, which saw revenue rise 13% to $1.3 billion while operating profit rose 16% to $881 million.
"Pulling forward" debt issuance
The ratings business benefited from a 14% surge in credit issuance. As S&P Global generates revenue from providing credit ratings, higher issuance typically results in higher revenue.
The strength in the first quarter came from investment-grade debt issuance, which was driven by investments made by hyperscalers in artificial intelligence (AI) infrastructure as well as M&A transactions. Investment-grade nonfinancial corporate issuance rose 85% in March, led by hyperscaler issuance.
According to S&P Global, a surge in bond issuance in March was largely due to the war in Iran. S&P Global said it was the result of issuers "pulling forward" deals they had planned for later in the year. They did the deals earlier to get ahead of potential future market volatility resulting from the conflict.
The Market Intelligence business also benefited from the volatility, as customers came to S&P Global "with increased urgency" for its data, benchmarks, insights, and tools "to make timely and informed decisions in this rapidly evolving operating end market environment," Cheung said on the earnings call.
And while markets were down in the first quarter, index revenue increased, in part, because markets were slightly better in Q1 2026 than in Q1 2025. Also, the volatility led to a surge of net inflows into ETFs that tracked S&P Dow Jones Indices.
S&P Global stock is down 18% year-to-date, but with its strong earnings and relatively low forward P/E ratio, analysts remain very bullish. SPGI stock is rated a buy by 93% of analysts and has a median price target, suggesting 28% upside.
