S&P Global Inc. (SPGI) Stock Analysis

S&P Global’s primary competitive advantage is its entrenched position in global credit ratings and financial benchmarks. Alongside Moody’s and Fitch, S&P Global forms an oligopoly controlling over 90% of global credit ratings, which creates high barriers to entry due to regulatory requirements, issuer and investor trust, and network effects. Its S&P Dow Jones Indices business is a global standard for passive investment products, with $5.5 trillion in ETF assets under management linked to its indices as of Q4 2025.

The company’s proprietary data sets and analytics platforms, such as Capital IQ and Market Intelligence, are deeply embedded in client workflows, driving high switching costs and customer retention rates above 95% in core segments. S&P Global’s scale enables it to invest heavily in technology—over $1 billion in AI since 2018—outpacing smaller rivals and supporting product innovation.

Compared to Moody’s, S&P Global is more diversified, with significant revenue from indices, energy, and mobility data, reducing reliance on cyclical debt issuance. Its operating margins (41% in 2025) and return on equity (14%) are industry-leading.

Risks include pricing pressure from vendor consolidation and the threat of disintermediation by free or low-cost data sources, but S&P’s brand, regulatory entrenchment, and breadth of offerings provide a durable moat. The company’s culture emphasizes innovation and customer-centricity, supporting its long-term competitive position.