Ratings and analytics drive S&P Global’s continued success

Overview

S&P Global reported strong financial results for Q4 and full-year 2024, with double-digit revenue growth across all segments and record profitability. The company delivered revenue of $3.59bn in Q4 and full-year revenue of $14.2bn, driven primarily by the Ratings division (+31% YoY). GAAP diluted EPS rose to $2.85, while adjusted diluted EPS increased to $3.77. For the full year, GAAP diluted EPS to $12.35, and adjusted EPS was to $15.70.

CEO Martina Cheung emphasized continued profitable growth, highlighting S&P Global’s position as a leading provider of benchmarks, data, and analytics: “I am pleased that S&P Global delivered an outstanding year in 2024. We reported revenue growth in all segments, as well as strong operating margin expansion and EPS growth for the company, exceeding our consolidated financial guidance on both a GAAP and adjusted basis. We demonstrated the strength of our businesses and enter 2025 with strong momentum. As S&P Global’s new CEO, I have had hundreds of conversations with our customers and partners, who have reinforced the need for our benchmarks, data, and insights to guide their decisions in a constantly evolving market.”

Q4 2024 vs. Q4 2023:

Revenue increased to a value of $3.59bn (+14% YoY), with all divisions contributing to growth.
GAAP net income recorded a value of $880m (+52% YoY), fueled by strong Ratings revenue, while adjusted net income was $1.16bn (+18% YoY).
GAAP diluted EPS rose to $2.85 (+56% YoY), supported by a 2% reduction in diluted shares outstanding, while adjusted EPS was $3.77 (+20% YoY), benefiting from strong Ratings performance.
Operating margin increased to 36.5% (+8pp vs. 2023), mainly due to higher revenue and disciplined cost management.

Full-Year 2024 highlights:

Revenue rose to $14.2bn (+14% YoY), with significant increases in all activities:
- Ratings revenue surged to $4.37bn (+31% YoY), reflecting higher debt issuance and market activity.
- Market Intelligence revenue grew to $4.65bn (+6% YoY), supported by data and analytics demand.
- Commodity Insights revenue up to $2.14bn (+10% YoY), with strong growth in energy and sustainability-related data services.
- Mobility revenue increased to $1.61bn (+8% YoY), benefiting from higher automotive data demand.
- Indices revenue rose to $1.63bn (+16% YoY), driven by strong ETF and index licensing revenue.
GAAP net income was $3.85bn (+47% YoY), driven by revenue growth in Ratings and Indices, while adjusted net income have reached $4.9bn (+22% YoY).
GAAP diluted EPS increased to $12.35 (+50% vs. 2023) and adjusted EPS rose to $15.70 (+25% vs. 2023), exceeding guidance due to strong operational execution.
Operating profit margin increased to 39.3% (+7pp YoY), driven by efficiency improvements and revenue mix.
The company returned to shareholders $4.4bn in FY2024, including $1.1bn in dividends and $3.3bn in share repurchases.

For 2025 outlook, S&P Global anticipates continued growth, driven by strategic investments in AI, data analytics, and capital markets intelligence. The company forecasts revenue growth between 5.0% – 7.0%, led by expansion in Ratings, Indices, and Market Intelligence. GAAP EPS is projected to range from $14.20 – $14.45, supported by operating efficiency and disciplined cost controls, while adjusted EPS is expected to reach $17.00 – $17.25, reflecting strong profitability and revenue momentum. Operating margins are set to improve, with GAAP margin projected at 41.5% – 42.5% and adjusted margin expected at 49.0% – 50.0%, reinforcing the company’s focus on profitability and operational leverage. Capital expenditures are planned between $190m – $200m, prioritizing technology advancements, AI integration, and data infrastructure enhancements. Additionally, S&P Global remains committed to delivering value to shareholders, maintaining its goal of returning over 85% of free cash flow through dividends and share repurchases, with an authorized $4.3bn buyback program in place.

From the publication of the report until the time of writing this news, the company’s shares have increased by over 5% this trading week, their price stabilizing around the $540 threshold, after an impressive rise that occurred immediately after the announcement of the main results.