S&P Global Earnings: Solid Revenue Trends, Outlook Narrowed

In our view, S&P Global generally reported a healthy third quarter. Revenue of $3.09 billion and adjusted EPS of $3.21 beat the FactSet consensus estimate by 2% and 6%, respectively. The ratings business is rebounding, and the firm’s subscription businesses are proving resilient and in some cases are accelerating. With one quarter left to 2023, S&P narrowed its firmwide revenue outlook but kept its midpoint unchanged. We will maintain our wide moat rating and as we tweak our revenue estimates higher, we are increasing our fair value estimate to $385 from $375 on S&P Global’s shares.