Sign in

    S&P Global Inc (SPGI)

    CEO Change

    Business Description

    SPGI is a company that operates through several key business lines, providing essential data, analytics, and insights to various industries. The company primarily engages in Market Intelligence, Mobility, and Indices, offering subscription-based services and solutions that cater to finance, automotive, and investment sectors . SPGI's revenue growth is largely driven by the demand for market data and insights, with a strong emphasis on subscription models across its divisions .

    1. Market Intelligence - Provides data, analytics, and third-party research for finance and corporate professionals through Desktop, Data & Advisory Solutions, Enterprise Solutions, and Credit & Risk Solutions. Subscription revenue is a major contributor to this segment.

      • Desktop - Offers software access for financial data analysis.
      • Data & Advisory Solutions - Delivers tailored data and advisory services.
      • Enterprise Solutions - Supplies comprehensive data solutions for enterprises.
      • Credit & Risk Solutions - Provides tools for credit assessment and risk management.

    2. Mobility - Serves the automotive value chain, including OEMs, suppliers, and finance companies, with critical information and insights through subscription and consulting services.

    3. Indices - Offers valuation and index benchmarks for investment advisors and institutional investors, generating revenue from asset-linked fees, exchange-traded derivatives, and data subscriptions.

    Q3 2024 Summary

    Initial Price$448.38July 1, 2024
    Final Price$512.22October 1, 2024
    Price Change$63.84
    % Change+14.24%

    What went well

    • Strong Leadership Transition with Strategic Focus: Incoming CEO Martina Cheung plans to connect the dots across divisions through a new Chief Client Officer role, aiming to enhance cross-selling opportunities and unlock growth potential by leveraging SPGI's vast data assets.
    • Commitment to Innovation and AI Adoption: SPGI is integrating Generative AI into products, leveraging its Kensho platform and extensive high-quality data to improve offerings and customer engagement. They've seen significant momentum in AI initiatives, both internally with the Spark Assist tool and externally with customers expressing strong interest.
    • Disciplined Portfolio Optimization and Confidence in Value Creation: SPGI continues to optimize its portfolio, making strategic divestitures and focusing on areas with the highest potential for growth and value creation, demonstrating a disciplined approach to delivering shareholder value.

    What went wrong

    • Elevated cancellations in the Market Intelligence division, particularly among smaller customers, are negatively impacting growth, and this trend is expected to continue through at least the end of the year.
    • Pricing pressure, tightening of budgets, and longer sales cycles in key end markets are causing challenges, making it difficult to predict when a recovery in the Market Intelligence segment might occur.
    • Ongoing portfolio optimization and leadership changes, including recent divestitures, suggest challenges in achieving steady execution within the Market Intelligence business.

    Q&A Summary

    1. Ratings Growth Outlook
      Q: Is the 6–9% growth target for Ratings achievable after pull-forwards?
      A: Martina affirmed that despite higher issuance levels and some pull-forward from future years, they are on track to achieve the 6% to 9% growth target for Ratings over the next several years, citing a healthy maturity wall of $2–2.8 trillion each year over the next five years and the strong correlation with GDP growth.

    2. Market Intelligence Challenges
      Q: When will Market Intelligence growth improve, and what needs to change?
      A: Martina noted that while they won't predict a trough, they have good conviction that innovation in core products and increased customer engagement will drive recovery as market conditions improve. She mentioned seeing some "green shoots" in certain sectors like banking.

    3. Synergy Realization
      Q: Are synergies impacting divisions differently amid MI's challenges?
      A: Doug stated that synergies from the merger are ahead of expectations, with cross-sell performing incredibly well. Integration has gone well, and they continue to deliver on synergy targets across all divisions.

    4. Strategy Under New Leadership
      Q: What changes will Martina implement to enhance shareholder value?
      A: Martina plans to connect the dots across divisions through new leadership functions like the Chief Commercial Officer and the enterprise data office, aiming to better leverage their data and create more growth opportunities.

    5. Commodity Insights Outlook
      Q: Is Commodity Insights' strong performance sustainable amid cyclicality?
      A: Martina is excited about the business due to its diversification across commodities and growth in areas like energy transition products, including a new clean energy tech product. They are investing in areas that are expected to continue growing.

    6. Competition in Market Intelligence
      Q: Has pricing competition increased in Market Intelligence?
      A: Doug acknowledged pricing pressure due to expense management in client firms, sales cycle slowdowns, and vendor consolidation. However, he emphasized that Market Intelligence remains an incredibly strong business with valuable data offerings.

    7. Indices Business Outlook
      Q: How is the Indices business performing amid industry challenges?
      A: Chris explained they are focusing on long-term customer relationships, expecting acceleration in Data & Custom revenue, which increased 5% year-over-year. They anticipate ACV acceleration later in the year.

    8. Adoption of AI Technologies
      Q: What's the status of AI adoption among customers and internally?
      A: Martina highlighted that their high-quality data positions them well for integrating generative AI into products. Clients are engaging with them on AI-ready data, and internally, the rollout of Spark Assist is progressing with high adoption and valuable use cases.

    9. Private Market Solutions Growth
      Q: How is SPGI positioned in private markets amid industry growth?
      A: Martina noted that they are investing and growing rapidly in private markets across the portfolio, with phenomenal products like iLEVEL and Wall Street Office performing well. They see opportunities in Ratings and Indices divisions too.

    10. Sustainability Products Strategy
      Q: What is the outlook for sustainability products and new launches?
      A: Martina announced plans to move the Sustainable1 business under Commodity Insights, combining it with energy transition products. This aims to leverage their unique capabilities to help clients navigate the energy transition and expand offerings to multiple sectors.

    11. Mobility Revenue Guidance
      Q: Why was the Mobility revenue guidance trimmed again?
      A: Chris stated that while core subscription growth was strong at low double digits, challenges continue in the recall business. They expect an easier comparison next year due to the recall headwinds easing.

    12. Chief Client Officer Role Creation
      Q: What's the purpose of the new Chief Client Officer role?
      A: Martina explained that the role aims to bring more consistency and connectivity across sales teams, ensuring customers understand the full breadth of SPGI's offerings and improving go-to-market practices.

    13. Market Intelligence Desktop Competition
      Q: Is structural lack of growth in Financial Services impacting MI Desktop?
      A: Martina believes market conditions play to their strengths, pointing to growth in areas like private credit. They have a broad offering, and products like Visible Alpha are performing well. Strategic accounts and new leadership roles are expected to enhance market share.

    Key Metrics

    View all financials →
    Revenue by Segment - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Market Intelligence1,0711,0791,0991,1274,3761,1421,1551,162
    - Subscription66----70--
    - Non-subscription77----75--
    - Recurring Variable125----141--
    Ratings8248518198383,3321,0621,1351,110
    - Non-transaction445----480--
    Commodity Insights5084624794971,946559516522
    - Sales Usage-based65----73--
    Mobility3583693793781,484386400412
    Indices341348354361,403387389416
    - Asset-linked Fees210----244--
    Engineering Solutions100330-133000
    Intersegment Elimination-42-41-46-48-177-45-46-47
    Total Revenue3,1603,1013,0843,15212,4973,4913,5493,575
    Revenue by Geography - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    U.S.1,9261,8651,8531,8987,5422,1502,1512,176
    European region7117036937152,822776830802
    Asia3373423443521,375356368388
    Rest of the world186191194187758209200209
    - Domestic Revenue--------
    - International Revenue--------
    Total Revenue3,1603,1013,0843,15212,4973,4913,5493,575

    Executive Team

    NamePositionStart DateShort Bio
    Douglas L. PetersonPresident and Chief Executive OfficerNovember 1, 2013Douglas L. Peterson has served as the President and CEO of S&P Global since November 1, 2013. He joined the company in September 2011 as President of its credit ratings business. Before S&P Global, he was COO of Citibank .
    Ewout L. SteenbergenExecutive Vice President, Chief Financial OfficerNovember 2016Ewout L. Steenbergen has been the Executive Vice President and CFO at S&P Global since November 2016. His responsibilities expanded in 2021 to include leadership of Kensho Technologies and S&P Global Engineering Solutions .
    Christopher F. CraigInterim Chief Financial OfficerFebruary 12, 2024Christopher F. Craig began serving as the Interim CFO of S&P Global on February 12, 2024. He was previously the Senior Vice President, Controller, and Chief Accounting Officer since September 7, 2018 .
    Adam KanslerPresident, S&P Global Market IntelligenceMarch 1, 2022Adam Kansler was appointed President of S&P Global Market Intelligence effective March 1, 2022, following the merger with IHS Markit .
    Martina L. CheungPresident and CEO (effective)November 1, 2024Martina L. Cheung has been with S&P Global since May 2010. She was announced as the incoming President and CEO, effective November 1, 2024 .
    Saugata SahaPresident, S&P Global Market Intelligence and Chief Enterprise Data OfficerNovember 1, 2024Saugata Saha is the President of S&P Global Market Intelligence and Chief Enterprise Data Officer, effective November 1, 2024 .
    Edouard TavernierPresident, S&P Global MobilityFebruary 28, 2022Edouard Tavernier is the President of S&P Global Mobility, a division of S&P Global, since February 28, 2022 .
    Dan DraperChief Executive Officer, S&P Dow Jones IndicesJune 15, 2020Dan Draper is the CEO of S&P Dow Jones Indices, responsible for all aspects of the index business globally since June 15, 2020 .
    S. Swamy KocherlakotaExecutive Vice President, Chief Digital Solutions OfficerDecember 12, 2023S. Swamy Kocherlakota is the EVP, Chief Digital Solutions Officer at S&P Global, responsible for digital transformation. He joined as CIO on January 1, 2018 .
    Steven J. KempsExecutive Vice President, Chief Legal OfficerAugust 2016Steven J. Kemps has been the EVP and Chief Legal Officer at S&P Global since August 2016. He oversees legal operations and advises on business impacts of changing laws .
    Dimitra ManisExecutive Vice President, Chief Purpose OfficerMay 15, 2018Dimitra Manis serves as the EVP, Chief Purpose Officer at S&P Global. She was previously the EVP, Chief People Officer .
    Sally MooreChief Client OfficerNovember 1, 2024Sally Moore is the Chief Client Officer at S&P Global, effective November 1, 2024. She was previously EVP, Global Head of Strategy, M&A, and Partnerships .
    Eric AboafChief Financial Officer (effective)February 2025Eric Aboaf has been appointed as the CFO of S&P Global, effective February 2025. He was previously the CFO of State Street Corporation .
    Dave ErnsbergerCo-President, S&P Global Commodity InsightsNovember 1, 2024Dave Ernsberger is the Head of Market Reporting and Trading Solutions at S&P Global Commodity Insights. He will become co-President effective November 1, 2024 .
    Mark EramoCo-President, S&P Global Commodity InsightsNovember 1, 2024Mark Eramo is the Co-President of S&P Global Commodity Insights, effective November 1, 2024. He was previously Head of Fuels, Chemicals & Resource Solutions .
    Yann Le PallecPresident, S&P Global RatingsNovember 1, 2024Yann Le Pallec is the President of S&P Global Ratings, effective November 1, 2024. He has been with S&P Global Ratings since 1999 .
    Girish GanesanChief People OfficerNovember 1, 2024Girish Ganesan is the Senior Vice President of People at S&P Global and became Chief People Officer effective November 1, 2024 .
    Christina TwomeyChief Communications OfficerNovember 1, 2024Christina Twomey is the Chief Communications Officer at S&P Global, effective November 1, 2024. She is responsible for all aspects of communications across the company .

    Questions to Ask Management

    1. Martina, with the recent leadership changes and your emphasis on connecting the dots across divisions, what specific initiatives are you planning to implement differently from your predecessor to enhance shareholder value, and how will you ensure these changes don't disrupt the company's current success?
    2. Given the challenges in the Market Intelligence segment, including increased cancellations among smaller customers due to pricing pressure and longer sales cycles, what concrete steps are you taking to stabilize execution and improve performance in this segment?
    3. Mobility revenue guidance has been trimmed for the second consecutive quarter, partly due to recall activity headwinds. How do you plan to overcome these challenges, and what strategies are in place to restore growth and confidence in this segment moving forward?
    4. While Commodity Insights is performing well above medium-term targets, how do you plan to mitigate potential cyclicality in this business, and can you elaborate on how investments in energy transition products will contribute to sustained growth despite market fluctuations?
    5. With several leadership changes announced, including new division presidents and a new CFO expected in 2025, how will you ensure that this transition maintains the company's growth trajectory, and what measures are in place to address any potential disruptions or challenges arising from these changes?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateJune 22, 2022
    End Date/DurationNo expiration date
    Total additional amount30 million shares
    Remaining authorization amount14.6 million shares
    DetailsUsed for general corporate purposes, including stock compensation plans and offsetting dilutive effects of employee stock options

    Past Guidance

    Q3 2024 Earnings Call

    • Issued Period: Q3 2024
    • Guided Period: FY 2024
    • Guidance:
      1. Revenue Growth: 11.5% to 12.5% .
      2. Adjusted Margin Expansion: 200 to 250 basis points .
      3. Adjusted Diluted EPS: $15.10 to $15.30 .
      4. Adjusted Free Cash Flow: Approximately $5.2 billion .
      5. Market Intelligence Revenue Growth: 6% to 6.5% .
      6. Ratings Revenue Growth: 26% to 28% .
      7. Commodity Insights Revenue Growth: 9% to 9.5% .
      8. Mobility Revenue Growth: 8% to 8.5% .
      9. Indices Revenue Growth: 13% to 15% .
      10. Market Intelligence Margins: 32.5% to 33% .
      11. Ratings Margins: 61% to 62% .
      12. Commodity Insights Margins: 46.5% to 47% .
      13. Mobility Margins: 38.5% to 39% .
      14. Indices Margins: 69.5% to 70.5% .
      15. Global GDP Growth Assumption: 3.2% .
      16. U.S. Inflation Assumption: 2.9% .
      17. Average Price for Brent Crude Assumption: $81 per barrel .
      18. Billed Issuance Forecast: Increase approximately 50% .

    Q2 2024 Earnings Call

    • Issued Period: Q2 2024
    • Guided Period: FY 2024
    • Guidance:
      1. Revenue Growth: 8% to 10% .
      2. Adjusted Operating Margin Expansion: 125 to 175 basis points .
      3. Adjusted Diluted EPS: $14.35 to $14.60 .
      4. Adjusted Free Cash Flow: Approximately $4.7 billion .
      5. Market Intelligence Revenue Growth: 6% to 7.5% .
      6. Ratings Revenue Guidance: Raised substantially .
      7. Commodity Insights Revenue Guidance: Unchanged .
      8. Mobility Revenue Growth: 8% to 9% .
      9. Indices Revenue Growth: 10% to 12% .
      10. Market Intelligence Margin Guidance: 33% to 34% .
      11. Ratings Margin Guidance: Raised by 100 basis points .
      12. Mobility Margin Guidance: 38.5% to 39.5% .
      13. Indices Margin Expectations: Unchanged .

    Q1 2024 Earnings Call

    • Issued Period: Q1 2024
    • Guided Period: FY 2024
    • Guidance:
      1. Global GDP Growth: 3.2% .
      2. U.S. Inflation: 2.8% .
      3. Brent Crude Price: $85 per barrel .
      4. Interest Rate Cuts: Fewer than 3 .
      5. Billed Issuance Forecast: 6% to 10% .
      6. Revenue Growth: 6% to 8% .
      7. Margin Expansion: 100 to 150 basis points .
      8. Adjusted EPS: $13.85 to $14.10 .
      9. Adjusted Free Cash Flow: Increased by $100 million .
      10. Division Revenue Growth: Reiterated for Market Intelligence, Commodity Insights, and Mobility; increased for Ratings and Indices .
      11. Indices Margin Outlook: Raised .
      12. Ratings Division Margins: 150 basis points expansion .

    Q4 2023 Earnings Call

    • Issued Period: Q4 2023
    • Guided Period: FY 2024
    • Guidance:
      1. Revenue Growth: 5.5% to 7.5% .
      2. Organic Revenue Growth: 7% to 9% .
      3. Adjusted Operating Margin Expansion: At least 100 basis points .
      4. Adjusted EPS: $13.75 to $14 .
      5. Adjusted Tax Rate: Nearly 2 percentage points higher .
      6. Adjusted Free Cash Flow: Approximately $4.4 billion .
      7. Division-Specific Revenue Growth and Margins:
        • Market Intelligence: Revenue growth 6% to 7.5%; margins 33.5% to 34.5% .
        • Ratings: Revenue growth 6% to 8%; margins 57.5% to 58.5% .
        • Commodity Insights: Revenue growth 8% to 9.5%; margins 46.5% to 47.5% .
        • Mobility: Revenue growth 8.5% to 10%; margins 39% to 40% .
        • S&P Dow Jones Indices: Revenue growth 7% to 9%; margins 68.5% to 69.5% .
      8. Billed Issuance Growth: 3% to 7% .
      9. Global GDP Growth Assumption: 2.8% .
      10. U.S. Inflation Assumption: 2.4% .
      11. Average Price for Brent Crude: $83 per barrel .
      12. Share Repurchase Authorization: Up to $2.4 billion .

    Latest news

    Recent developments and announcements about SPGI.

    Corporate Leadership

      CEO Change

      ·
      Oct 17, 2024, 12:00 AM

      Martina L. Cheung is set to become the President and CEO of S&P Global on November 1, 2024 .