S&P Global Reports 16% Revenue Growth, 33% Operating Profit Increase in Q3 2024

S&P Global Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved revenues of $3,575 million for the third quarter, marking a 16% increase from $3,084 million in the same period of 2023. For the nine months, revenue rose 14% to $10,616 million, compared to $9,345 million in the prior year. This growth was driven by strong performance across all reportable segments, particularly in Ratings, which saw a notable increase in corporate bond and bank loan ratings revenue.

Operating profit for the third quarter reached $1,434 million, a 33% increase from $1,074 million in 2023. For the nine months, operating profit surged 36% to $4,271 million, compared to $3,130 million in the previous year. Net income for the third quarter was $1,047 million, up 29% from $814 million, while net income for the nine months increased 42% to $3,200 million from $2,249 million. Earnings per share (EPS) also saw substantial growth, with diluted EPS for the third quarter at $3.11, a 33% increase from $2.33, and for the nine months at $9.50, up 48% from $6.40.

The company’s strategic developments included several acquisitions aimed at enhancing its service offerings. Notably, S&P Global completed the acquisition of Visible Alpha on May 1, 2024, and World Hydrogen Leaders on May 14, 2024, both of which are expected to bolster the Market Intelligence and Commodity Insights segments, respectively. Additionally, the sale of Fincentric on August 15, 2024, resulted in a pre-tax gain of $21 million.

S&P Global also undertook restructuring efforts, reducing its workforce by approximately 415 positions in 2024, following a larger reduction of 1,050 positions in 2023. The initial restructuring charge for 2024 was recorded at $49 million, with an ending reserve balance of $21 million as of September 30, 2024.

Financially, the company reported cash and cash equivalents of $1,696 million as of September 30, 2024, an increase from $1,290 million at the end of 2023. Cash provided by operating activities for the nine months was $3,949 million, a 66% increase from $2,376 million in the same period of 2023. Free cash flow also improved significantly, reaching $3,645 million compared to $2,070 million in the prior year.

Overall, S&P Global's performance reflects robust growth across its segments, strategic acquisitions, and effective cost management, positioning the company favorably in the market.