Key Highlights

  • Revenue was $3.678 billion, up 7%, and adjusted diluted EPS was $4.58, up 9%.
  • GAAP diluted EPS was $4.45, up 26%, helped by a $200 million pre-tax gain on disposition in Energy.
  • Adjusted operating margin was 53.5%, up 60 basis points.
  • 2026 adjusted EPS guidance was raised to $17.70 to $17.95 from $17.50 to $17.75.
  • Third-quarter share repurchases were $2.6 billion, with more than $7 billion expected for 2026.

S&P Global Earnings: Why Did Guidance Rise and a Capital IQ Review Begin Together?

S&P Global (NYSE:SPGI) reported third-quarter results on Tuesday, October 27, with revenue from continuing operations of $3.678 billion, up 7%. Adjusted diluted EPS was $4.58, up 9%, against analyst estimates of $4.42, a 3.66% surprise as screened. GAAP diluted EPS was $4.45, up 26%.

Management raised the 2026 outlook and announced a strategic review of alternatives, including a potential separation, for Capital IQ and associated data businesses. These make up most of Kensho Data and Platforms within Market Intelligence. The company expects to retain RatingsDirect, RatingsXpress and Enterprise Solutions.

The release sets no timeframe and says no outcome is assured.

S&P Global Segments: Which Businesses Drove the 7% Revenue Gain?

Indices led, with revenue up 20% to $554 million and adjusted operating profit up 22% at a 72% margin. Asset-linked fees rose 24% to $375 million.

Market Intelligence revenue rose 7% to $1.263 billion, with subscription revenue up 6% to $1.049 billion and a 36% adjusted margin, against 35%. Energy revenue rose 6% to $645 million at a 48% adjusted margin.

Ratings revenue rose 2% to $1.271 billion, with adjusted operating profit flat at $835 million and a 66% margin, against 67%. Transaction revenue rose 1% to $677 million and non-transaction revenue rose 4% to $594 million.

S&P Global Margins: How Did GAAP and Adjusted Profit Diverge?

GAAP operating margin was 53.2%, up 800 basis points, while adjusted operating margin was 53.5%, up 60 basis points. The gap reflects gains on disposition, including a $200 million pre-tax gain ($136 million after tax) in Energy. GAAP net income rose 20% to $1.298 billion, while adjusted net income rose 4% to $1.337 billion.

The Mobility business was spun off on July 1 and is reported as discontinued operations, with a third-quarter loss of $58 million. Diluted weighted shares fell about 4% to 291.6 million.

Nine-month adjusted diluted EPS was $13.86, up 15%.

S&P Global Outlook: What Changed in the 2026 Guidance?

Revenue growth guidance was raised to 7.4% to 8.4% from 5.9% to 7.9%, on higher expected revenue from Ratings and Indices. Adjusted operating margin expansion was raised to 75 to 100 basis points from 35 to 60, and adjusted diluted EPS to $17.70 to $17.95 from $17.50 to $17.75. The company cited higher revenue and continued expense discipline.

GAAP guidance moved the other way. GAAP diluted EPS was lowered to $16.25 to $16.50 from $16.35 to $16.60, and GAAP margin expansion to 310 to 335 basis points from 335 to 360, mainly on adjustments to expected disposition gains.

Nine-month free cash flow was $3.299 billion, up from $2.950 billion, and buybacks were $2.6 billion in the quarter and more than $4 billion year to date. Total debt was $13.062 billion against $2.441 billion of cash. The quarterly dividend is $0.97 per share. Next to watch are Ratings transaction revenue, Market Intelligence growth and any update on the Capital IQ review.