S&P Global Inc. (SPGI) Stock Analysis

S&P Global’s primary competitive advantage is its entrenched position in global financial infrastructure, particularly in credit ratings and indices. In credit ratings, SPGI holds a 40% global market share, ahead of Moody’s (34%), forming a near-duopoly that benefits from high regulatory barriers and deep customer trust. Its S&P Dow Jones Indices business is the world’s largest index provider, underpinning trillions in ETF and mutual fund assets; asset-linked fees accounted for $1.05 billion of segment revenue in 2024, up 22% year-over-year.

The company’s data and analytics platforms, such as Capital IQ and Platts, are deeply embedded in client workflows, driving high switching costs and recurring revenue—subscription products made up 52% of total revenue in 2024. SPGI’s scale enables it to invest heavily in technology, notably in artificial intelligence and workflow integration, outpacing smaller rivals like FactSet and Morningstar in product breadth and innovation.

Customer satisfaction is reflected in strong retention rates and the ability to raise prices above inflation. The company’s culture emphasizes innovation and operational discipline, supporting consistent margin expansion (operating margin 39% in 2024 vs. 32% for Moody’s). Risks include regulatory scrutiny and the threat of disintermediation from free or low-cost data sources, but SPGI’s brand, data quality, and regulatory entrenchment provide substantial defense.