S&P Global SPGI strengthens its position through its recurring subscription-based revenue model and strong demand for artificial intelligence (AI)-powered services. Continued positive segmental performance provides a strong foundation for future objectives. Strong shareholder policies remain favorable for the company.
The company’s second-quarter 2026 earnings are expected to increase 11.5% year over year. Its 2026 and 2027 earnings are projected to rise 9.9% and 12.8%, respectively. Revenues are expected to grow 7.5% in both 2026 and 2027.
Factors That Bode Well for SPGI
S&P Global’s continued growth is primarily driven by its recurring subscription-based revenue model, supported by the model’s inherent resilience and compelling growth drivers, despite heightened geopolitical tensions and an increasingly uncertain macroeconomic environment. During the first quarter of 2026, the company reported that subscription product revenues increased 6% year over year.
S&P Global Inc. Revenue (TTM)
S&P Global Inc. revenue-ttm | S&P Global Inc. Quote
SPGI’s consistent growth of individual segments also plays a key role in its overall success. The company reported that revenues from the Ratings division increased 13% in the first quarter of 2026, driven by robust investment-grade issuance and large merger & acquisition financing transactions. Its Market Intelligence revenues increased 8% and the Energy Division posted 7% revenue growth year over year, while revenues from the Indices segment increased 17% year over year during the same period.
Continued demand from hyperscale technology companies adopting artificial intelligence (AI) and investing heavily in infrastructure is also boosting the company's sales volumes. SPGI’s Data Analytics & Insights is benefiting from strong demand for its financial market intelligence and research platform, Capital IQ Pro. The company continues to expand compatibility with leading AI platforms by enabling seamless data access for Microsoft Copilot, ChatGPT and Claude through the Model Context Protocol. Management highlighted that customers leveraging AI-enabled offerings are generating significantly faster annual contract value growth than traditional customers.
The company has demonstrated a strong commitment to its shareholders through consistent dividend payments and share repurchases. It paid dividends of $1.1 billion, $1.1 billion and $1.2 billion, while repurchasing shares worth $3.3 billion, $18.6 billion and $5 billion in 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors.
Risks to Watch
Global providers of financial intelligence, index products and investment advisory operate in a fiercely competitive landscape. S&P Global faces stiff competition from firms such as Moody's Corp. and Fitch Ratings. Aggressive, investor-friendly strategies by competitors could erode the company’s market position, dampening top-line growth and operating margins.
SPGI’s total expenses related to productivity programs, compensation investments, technology development, acquisitions and strategic growth initiatives have risen consistently over the past three years, increasing from 3.4% in 2023, 3.3% in 2024 and 5% in 2025. In the first quarter of 2026, SPGI reported that its total expenses rose 6.1% year over year to $2.34 billion. This persistent expense growth is raising cost concerns that may compromise future profit margins.
SPGI’s current ratio (a measure of liquidity) at the end of the first quarter of 2026 was 0.68, lower than the industry average of 1.01. A current ratio below 1 often indicates that the company may not be well-positioned to pay off its short-term obligations.
S&P Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
A couple of better-ranked stocks in the broader Zacks Finance sector are JPMorgan Chase & Co. JPM and Moody's Corporation MCO.
JPMorgan Chase & Co. carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 9.6%. JPM delivered a trailing four-quarter earnings surprise of 7.4%, on average.
Moody's Corporation also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 11.5%. MCO's earnings beat estimates each of the last four reported quarters, with an average surprise of 4.2%.
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This article originally published on Zacks Investment Research (zacks.com).