S&P Global's fiscal year 2025 performance hits a new high, with optimistic guidance for fiscal year 2026

Economic Observer Network: S&P Global’s total revenue for fiscal year 2025 reaches $15.336 billion, with a net profit of $4.471 billion, both hitting record highs. The fourth quarter performance remains solid, driven by core business segments, with healthy financials.

Performance and Operating Conditions

For the full fiscal year 2025, core performance reached new heights, with total revenue of $15.336 billion, a 7.94% increase year-over-year. Net profit was $4.471 billion, up 16.07% year-over-year. Adjusted diluted earnings per share (EPS) stood at $17.83, a 14.0% increase. The fourth quarter of fiscal year 2025 showed steady performance, with quarterly total revenue of $3.916 billion, up 9.02%. Quarterly net profit was $1.134 billion, an increase of 28.86%. Adjusted operating profit margin was 50.0%, up 1.2 percentage points year-over-year.

Business Progress

Core business segments are driven by two main factors. S&P Ratings’ revenue in the fourth quarter grew 12.0% year-over-year, and for the full year increased 10%, mainly driven by a rebound in global corporate bond issuance and active structured financing. S&P Dow Jones Indices’ revenue in the fourth quarter increased 14.0% year-over-year, and for the full year grew 13%, leading all segments, primarily benefiting from the continued expansion of ETF assets under passive investment trends.

Financial Status

The company’s financial health and operational efficiency are strong. Cash flow remains robust, with net cash from operating activities for the year totaling $5.651 billion, and free cash flow at $5.456 billion. Subscription revenue accounts for a high proportion, representing 74% of total revenue, which enhances revenue predictability and cyclical resilience. Operating with a light asset model, capital expenditures as a percentage of sales are low at 1.27%, and return on invested capital (ROIC) remains high at 12.44%.

Company Performance Targets

The company’s guidance for fiscal year 2026 indicates an organic revenue growth of 6.0% to 8.0%; adjusted diluted EPS is expected to be between $19.40 and $19.65, representing a year-over-year increase of 9.0% to 10.0%.

The above information is compiled from publicly available sources and does not constitute investment advice.