Key Highlights
- Second-quarter revenue reached $4.15 billion, representing a 10.4% increase from the prior year and exceeding projections by 1%
- Adjusted earnings per share of $4.83 fell below analyst forecasts of $5.02, missing by 3.7%
- The company finalized the separation of its Mobility business unit on July 1, 2026
- Ratings segment revenue surged 17% annually; Indices segment climbed 20%
- Annual adjusted EPS forecast reduced to a midpoint of $17.63, representing a 9.7% decrease
Shares of S&P Global (SPGI) declined 2.5% during premarket hours on Tuesday following the release of underwhelming second-quarter financial results and a downward revision to its annual profit forecast.
The company reported quarterly revenue of $4.15 billion, representing a 10.4% year-over-year increase and surpassing the Street’s expectation of $4.11 billion. However, adjusted earnings per share of $4.83 came in below the consensus target of $5.02, marking a 3.7% shortfall.
These financial figures require important context. The financial data services giant finalized the separation of its Mobility business on July 1, 2026. Financial reporting is now presented on a pro forma basis, treating the spinoff as if it occurred in earlier periods, which complicates direct comparisons with analyst projections.
Using pro forma calculations, second-quarter revenue totaled $3.68 billion, marking an 11% year-over-year rise. The adjusted EPS of $4.83 compares favorably to $3.90 reported in the same quarter last year.
Segment Performance Analysis
The Ratings division emerged as the strongest performer, generating $1.34 billion in revenue with a 17% year-over-year increase. The Indices segment also delivered impressive results, posting $534 million in revenue with 20% growth.
Market Intelligence contributed $1.29 billion, reflecting a 6% annual gain. The Energy segment produced $568 million in revenue with modest 2% growth, marking the slowest expansion among the company’s four main divisions.
The adjusted operating margin expanded to 54.3%, improving from 52.3% in the corresponding quarter of 2025.
Chief Executive Martina Cheung emphasized the benefits of the restructured organization. “We have a sharper focus on our four core divisions, having also made organizational changes in Market Intelligence and combined our supply chain products within our Energy division,” she stated.
Cheung also called attention to progress in artificial intelligence, highlighting “continued rapid adoption and expansion of our AI solutions.”
Reduced Outlook Pressures Shares
The primary source of investor concern centers on the adjusted guidance. S&P Global now projects full-year adjusted EPS in the range of $17.50 to $17.75, with a midpoint of $17.63. This marks a 9.7% reduction from the company’s previous forecast.
Revenue expansion is now anticipated to fall between 5.9% and 7.9%, with organic constant currency growth projected at 6.0% to 8.0%.
The company generated pre-tax profit of $1.73 billion during the quarter, translating to a 41.7% margin.
Looking at longer-term trends, S&P Global has achieved revenue growth at an annualized pace of 10.2% over the past two years, marginally outpacing its five-year compound annual growth rate of 9%.
The company maintains a market capitalization of roughly $130.2 billion.
SPGI shares were trading down approximately 5.3% during Tuesday’s trading session.
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