S&P Global lifts net income 20% to $1.298 billion in third quarter
Key Facts
S&P Global reported third-quarter 2026 results on October 27, posting revenue of $3.678 billion, up 7% from the same period in 2025, and GAAP net income of $1.298 billion, up 20%. GAAP diluted earnings per share rose 26% to $4.45, while adjusted net income increased 4% to $1.337 billion and adjusted diluted earnings per share rose 9% to $4.58. The gap between growth in adjusted profit and GAAP profit reflects a gain on the divestiture in the energy segment, which the company said contributed to the increase in net income. The announcement coincided with the start of a strategic review of alternatives for Capital IQ and related data businesses, including a possible separation. The company said these businesses account for most of the Kensho Data & Platforms unit within Market Intelligence.
The company recorded a pretax gain of $200 million, or $136 million after tax, for the three and nine months ended September 30, 2026. In a separate announcement, S&P Global said it completed the sale of its geoscience and petroleum engineering software portfolio to SLB on September 1. The company said the transaction is not expected to have a material effect on its results or its energy segment. The gain is included in the company's explanation of the increase in GAAP net income, while adjusted net income rose 4% from a year earlier. GAAP earnings growth therefore differed from growth in adjusted measures during the quarter, as the former was affected by the divestiture gain recorded in the energy segment.
Management said revenue growth accelerated in indices, energy and Market Intelligence, while ratings revenue growth slowed slightly, as expected. Indices revenue was $554 million, up 20% year over year. Asset-linked fees tied to indices increased 24%, and exchange-traded derivatives revenue rose 19%. Ratings revenue increased 2% to $1.271 billion. The company attributed the segment's performance to strength in investment-grade issuance, offset by tough comparisons in high-yield and bank-loan categories.
Investors are also focused on the strategic review of the Capital IQ business and related data operations, which could include a separation, although the company has not set a timetable for the process. The businesses under review include most of the Kensho Data & Platforms unit within Market Intelligence. S&P Global said its 2026 fiscal-year guidance assumes that Market Intelligence will continue to contribute under its current structure throughout the year. On capital allocation, the company repurchased $2.6 billion of shares in the third quarter, and management said it expects total repurchases to exceed $7 billion in 2026. The board also approved a quarterly cash dividend of $0.97 per share.
SPGI shares closed at $448.93 on October 27, the day the company reported results and held its earnings call at 8:30 a.m. Eastern time. The closing price reflects the stock's move on the announcement day, not before it, as stated in the previous draft. Investors are watching the course of the strategic review, for which the company has not announced a specific date, and the performance of the segments where management said revenue growth accelerated, compared with the slight slowdown in ratings that it had expected. The 2026 guidance is based on Market Intelligence continuing to contribute under its current structure throughout the year.