What is the overall financial performance of S&P Global for the reported period?

S&P Global demonstrated strong financial performance, with significant increases in revenue and net income for both the third quarter and the first nine months of 2021 compared to the prior year. Revenue growth was broad-based across its segments, and profitability metrics, particularly Diluted EPS, showed substantial improvement.

How is the pending merger with IHS Markit impacting the financial results?

The merger with IHS Markit is in progress, with an expected closing in early 2022. While the merger is not yet complete, the company incurred merger-related costs, specifically highlighted as 'IHS Markit merger costs' within operating expenses. These costs affected the operating profit, but the core business segments continue to drive strong underlying revenue growth.

What is the outlook for S&P Global's key business segments?

All four reporting segments – Ratings, Market Intelligence, Platts, and Indices – contributed to revenue growth. Ratings and Market Intelligence showed particularly robust performance, driven by increasing demand for data, analytics, and credit ratings services. The company expects these trends to continue, supported by ongoing market needs for transparent and independent financial information.

How is S&P Global managing its capital and returning value to shareholders?

The company maintained a strong liquidity position and generated substantial cash flow from operations. S&P Global continued its commitment to returning capital to shareholders, evidenced by an increase in its quarterly dividend. While share repurchases were minimal in the current period compared to the prior year, the company has authorization for future repurchases.

SPGI 10-Q Quarterly Report Q3 FY2021 — Revenue, Net Income, EPS

Summary

S&P Global Inc. (SPGI) reported strong financial results for the third quarter and first nine months of 2021, demonstrating robust revenue and profit growth across its key segments. Revenue increased by 13% for the quarter and 11% for the nine-month period, driven by strong performance in Ratings, Market Intelligence, Platts, and Indices. Diluted Earnings Per Share (EPS) saw a significant increase of 75% for the quarter and 25% for the nine-month period, reflecting the company's operational efficiency and strong earnings generation. The company is actively preparing for the significant merger with IHS Markit, expected to close in early 2022. Despite ongoing integration costs, S&P Global maintained healthy operating margins and a strong balance sheet. The company also continued its capital allocation strategy, with increased dividends and a focus on strategic investments, underscoring its commitment to shareholder value while navigating a dynamic market environment.

Financial Highlights

52 data points

Beta

Revenue

$2.09B

0.7% Gross Margin

Net Income

$797.00M

0.4% Net Margin

EPS (Diluted)

$3.30

Total Assets

$14.11B

Cash & Equivalents

$5.91B

Free Cash Flow

$967.00M

Financial Statements

Beta

Revenue	$2.09B
Cost of Revenue	$543.00M
Gross Profit	$1.54B
SG&A Expenses	$423.00M
Operating Expenses	$1.01B
Operating Income	$1.08B
Net Income	$797.00M
EPS (Basic)	$3.31
EPS (Diluted)	$3.30
Shares Outstanding (Basic)	240.90M
Shares Outstanding (Diluted)	241.70M

Key Highlights

1Revenue grew by 13% year-over-year for the three months ended September 30, 2021, reaching $2,087 million, and by 11% for the nine months ended September 30, 2021, reaching $6,209 million.
2Net income attributable to S&P Global Inc. increased significantly, up 75% to $797 million for the third quarter and up 25% to $2,349 million for the nine-month period.
3Diluted Earnings Per Share (EPS) rose by 75% to $3.30 for the third quarter and by 25% to $9.72 for the nine-month period, indicating strong profitability.
4The Ratings segment showed strong revenue growth of 14% for both the quarter and the nine-month period, driven by increased transaction and non-transaction revenues.
5Market Intelligence segment revenue increased by 7% for the quarter and 6% for the nine-month period, driven by subscription growth in key product areas.
6The company reported significant merger costs related to the pending acquisition of IHS Markit, impacting operating expenses, but also highlighted strong cash flow generation with operating cash flow increasing by 10% for the nine-month period.
7S&P Global Inc. returned capital to shareholders through dividends, increasing the quarterly dividend to $0.77 per share and actively managing its capital structure.

S&P Global Inc. Quarterly Report for Q3 Ended Sep 30, 2021

Summary

Financial Highlights

Key Highlights

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