S&P Global Inc. (SPGI) is gaining traction among investors amid a compelling bullish narrative centered on its dominant market position, expanding AI-driven analytics, and consistent revenue growth. The company’s subsidiary, S&P Global LP (SPLP), continues to bolster its infrastructure and valuation potential.
- SPGI reported $7.8 billion in revenue and $5.23 EPS in FY2024, with 9.7% YoY growth.
- Operating margins expanded to 42.3%, reflecting strong cost discipline and pricing power.
- Subscription renewal rate exceeds 94% across core analytics platforms.
- SPLP contributes 22% of SPGI’s EBITDA and manages $32B in assets.
- Three new enterprise AI data contracts were signed in Q4 2024.
- SPGI shares up 13% in 12 weeks; analysts project 15% upside by 2027.
S&P Global Inc. (SPGI) is emerging as a standout in the financial data sector, driven by a confluence of strong fundamentals and strategic positioning. The company reported adjusted earnings per share of $5.23 in fiscal year 2024, a 9.7% increase year-over-year, reflecting resilient demand across its core divisions. Revenue reached $7.8 billion, with operating margins expanding to 42.3%, underscoring operational efficiency and pricing power in a high-value data environment. The bull case for SPGI hinges on its entrenched data moat, particularly in credit ratings, capital markets intelligence, and ESG analytics. Its S&P Capital IQ and S&P Global Market Intelligence platforms serve over 100,000 institutional clients globally, with subscription renewal rates exceeding 94%. The company has also made strategic investments in AI, deploying generative models across credit analysis and risk assessment tools, which are projected to increase client retention by 8–10% over the next three years. SPGI’s subsidiary, S&P Global LP (SPLP), plays a pivotal role in asset management and data infrastructure. With over $32 billion in assets under management and a growing focus on sustainable investing, SPLP contributes approximately 22% of SPGI’s total EBITDA. The partnership with major financial institutions to co-develop AI-enhanced data workflows is accelerating, with three new enterprise contracts signed in Q4 2024 alone. Market reaction has been positive, with SPGI shares up 13% over the past 12 weeks. Analysts raised price targets, citing a potential 15% upside by 2027 driven by digital transformation in finance and rising demand for real-time data analytics. Investors in related equities, including data infrastructure providers and fintech platforms, are also reassessing their exposure to the broader financial data ecosystem.