Why S&P Global Stock Is Up Today

S&P Global (SPGI) is enjoying a considerable spike in its stock price after posting stellar earnings results for the fourth quarter. Investors reacted positively to the news, pushing the shares up by more than 3% as of 2 p.m. ET.

Impressive Fourth Quarter Performance

S&P Global, known for its credit ratings, financial data, and indexes including the widely followed S&P 500, reported earnings of $3.77 per share, significantly outpacing Wall Street’s expectation of $3.47. The company’s revenue for the quarter reached $3.59 billion, also surpassing the $3.5 billion anticipated by analysts.

All segments of the company showed growth for 2024, and S&P Global experienced an increase in its operating margin by 830 basis points, bringing it to 36.5%. For the entire year, the net income saw a 22% increase to $4.9 billion.

Returns to Shareholders

A substantial portion of this profit has been returned to shareholders, with S&P Global distributing $1.1 billion in dividends and conducting $3.3 billion in share repurchases. This commitment to returning cash to investors has contributed to the current bullish sentiment surrounding the stock.

Positive Outlook for 2025

Looking ahead, S&P Global maintains a confident outlook for 2025. The company forecasts revenue growth of between 5% and 7%, alongside an expected earnings per share range of $17 to $17.25, surpassing the analysts’ consensus estimate of $16.92.

This optimistic forecast has investors excited, especially considering S&P’s declared aim to return 85% or more of generated cash to its shareholders. Over the past decade, S&P Global's stock has appreciated by 445%, significantly outperforming the S&P 500’s gain of 193%.

The latest results suggest that S&P Global is poised to remain a strong investment choice in the financial data sector.

S&PGlobal, Earnings, Investors