S&P Global’s stock dropped 5% following a mixed second quarter report. The company beat revenue expectations with $4.15 billion, a 10.4% increase year-over-year, but adjusted earnings per share fell short by nearly 4%, landing at $4.83 versus the $5.02 analysts predicted. This miss, combined with a nearly 10% cut in full-year EPS guidance, rattled investors.
Spinoff Changes How Results Are Viewed
The July 1 spinoff of S&P’s Mobility division reshaped how results are reported. Now, performance comparisons are made on a pro forma basis, as if the spinoff had occurred in prior quarters. On that adjusted scale, revenue was $3.68 billion, up 11% from last year, while EPS improved from $3.90 to $4.83. Despite the growth, the spinoff creates challenges matching consensus expectations directly.
Division Performance and Outlook Cut
Ratings led the gains with revenue climbing 17% to $1.34 billion, while Indices surged 20%. Market Intelligence saw a 6% increase, but Energy lagged, rising only 2%. Operating margins improved two percentage points to 54.3%. CEO Martina Cheung emphasized a sharper focus on the core segments and highlighted expanding AI capabilities as a growth driver. Still, full-year adjusted EPS forecasts dropped to $17.63 at midpoint, a 9.7% cut that overshadowed quarterly gains and pressured the stock lower.
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