SPGI: The February Bears Were Wrong (Earnings Review)
S&P Global (SPGI) reported strong Q1 2026 results, with 10% revenue growth, a 3.1% EPS beat, and margin expansion to 51.8%, countering bearish concerns from February. The Ratings and Indices segments led performance, while Market Intelligence maintained stable 6% subscription growth despite AI-related worries. The upcoming Mobility spin-off and a commitment to return 100% of free cash flow to shareholders support the bullish outlook. Shares appear attractively valued below 25x EPS.
- ▪SPGI delivered 10% revenue growth and exceeded EPS estimates by 3.1% in Q1 2026.
- ▪Operating margin expanded to 51.8%, reflecting strong cost control and pricing power.
- ▪The Ratings and Indices divisions were key growth drivers, while Market Intelligence showed resilient 6% subscription growth.
- ▪SPGI plans to spin off its Mobility business and return 100% of free cash flow to shareholders in 2026.
- ▪The stock is considered attractively valued for a long-term buy under 25x earnings.
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