S&P Global Inc.

Market Intelligence and Commodity Insights are largely subscription-driven, and Indices licensing is tied to long-term AUM agreements; approximately 60-65% of consolidated revenue carries high forward visibility. The Ratings segment (~31% of FY2025 revenue) is issuance-driven and cyclical, preventing the majority-recurring profile that would support a higher assessment.

S&P Global operates five segments serving distinct end-markets: Ratings, Market Intelligence, Indices, Commodity Insights, and Mobility. However, both Market Intelligence (~32%) and Ratings (~31%) exceeded 30% of FY2025 revenue, limiting the full diversification benefit despite the genuine variety of end-markets served across the five divisions.

The United States generated approximately 61% of FY2025 revenue, Europe 23%, Asia 11%, and the remainder from the rest of the world. Meaningful international exposure exists but the business remains heavily dependent on U.S. capital markets activity, regulatory conditions, and economic cycles.

The Indices segment operates at an approximately 70% adjusted operating margin and Ratings near 63%, reflecting near-zero marginal cost of serving additional users on fixed data and methodology infrastructure. These structural economics have held across FY2021-FY2025, including through the 2022 rate shock that materially compressed Ratings transaction volumes.

Market Intelligence subscription contracts and Indices AUM-linked licensing are mission-critical and long-duration; Platts price assessments are contractually embedded in commodity purchase agreements globally. The Ratings segment is mission-critical but issuance-driven rather than contractually recurring, preventing a majority-subscription profile across the consolidated entity.