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S&P Global said Tuesday it is reviewing options for Capital IQ and associated data businesses, including a possible separation, as the financial-information company reported higher quarterly profit and raised its revenue-growth outlook.
The review covers businesses that make up most of Kensho Data & Platforms within its Market Intelligence division. S&P Global said the exact scope remains under review, but it expects to retain RatingsDirect, RatingsXpress and Enterprise Solutions.
No transaction has been announced. The company said there is no specific timetable and no assurance that the review will lead to a deal or any particular outcome. Its financial forecast still assumes a full-year contribution from Market Intelligence in its current form.
A potential change in the financial-data business
Chief Executive Martina Cheung said the businesses under review have opportunities as technology changes how customers access, analyze and use information. S&P Global said separate ownership could provide more focused investment and help those businesses grow.
The distinction between reviewing a separation and committing to one matters for customers and employees. Tuesday’s announcement starts an evaluation of alternatives; it does not establish a buyer, a deal price or a completion date, and it does not announce a change to customers’ existing services.
The review follows the July 1 spin-off of S&P Global’s Mobility division into Mobility Global, an independent publicly traded company. In Tuesday’s results, Mobility is classified as discontinued operations and earlier periods have been recast. The earnings comparisons therefore describe the continuing businesses, rather than the former company’s full combined portfolio.
Revenue and earnings increase
Third-quarter revenue rose 7% to $3.678 billion, driven mainly by Indices and Market Intelligence, with additional growth in Energy and Ratings. Subscription revenue increased 6%, the company said.
Net income from continuing operations under generally accepted accounting principles rose 20% to $1.298 billion. Diluted earnings increased 26% to $4.45 a share, helped by both higher profit and a 4% decline in diluted shares outstanding.
The company said a gain on a disposition in its Energy business benefited reported profit. Adjusted net income, which excludes certain items, grew more slowly, rising 4% to $1.337 billion. Adjusted earnings per share rose 9% to $4.58 from $4.20.
That difference also appeared in margins. The reported operating margin increased to 53.2%, up eight percentage points, while the adjusted margin increased 0.6 percentage point to 53.5%. S&P Global attributed the reported margin’s larger gain primarily to a disposition gain.
Higher revenue outlook, mixed profit measures
S&P Global now expects full-year revenue growth of 7.4% to 8.4%, compared with its previous range of 5.9% to 7.9%. It cited higher expected revenue from Ratings and Indices.
The company raised adjusted earnings guidance to $17.70 to $17.95 a share from $17.50 to $17.75. Standard-accounting earnings guidance moved in the other direction, declining to $16.25 to $16.50 from $16.35 to $16.60, primarily because of changes in expected disposition gains, partly offset by stronger revenue.
S&P Global repurchased $2.6 billion in shares during the quarter, taking year-to-date buybacks above $4 billion. It continues to expect total repurchases of more than $7 billion in 2026. Its board has authorized a quarterly cash dividend of 97 cents a share.
JBizNews Desk | New York
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