S&P Global said it logged higher profit in the first quarter as clients leaned on its data and analytics products amid rising market volatility and geopolitical uncertainty. The New York-based provider of credit ratings, benchmarks, analytics and workflow solutions saw its shares trade about 1.3% higher in premarket trading following the results.
Company executives pointed to heightened use of market analytics and risk assessment tools as investors confronted private credit concerns and other sources of market turbulence. Demand for these services benefited several of S&P Global’s business lines, the company said.
In the three months ending March 31, revenue from the ratings segment - which supplies credit ratings, research and analytics to investors - increased 13% to $1.3 billion. Revenue for the market intelligence unit, which provides data and analytics to investment professionals, corporations and government agencies, rose 8% to $1.3 billion.
Total revenue for the quarter climbed 10% to $4.17 billion.
On a per-share basis, S&P Global reported profit of $4.69 for the quarter, up from $3.54 per share a year earlier.
While the quarterly performance reflects stronger demand for the firm’s analytics and research products, the company’s stock has nonetheless declined more than 15% so far this year. The report noted investor unease over AI-driven disruption in the software and services sector as a factor weighing on the share price.
The firm’s results follow similar trends reported earlier in the month by ratings agency Moody’s, which also recorded higher profit supported by demand for research and analytics offerings.
Context and implications
The revenue gains in S&P Global’s ratings and market intelligence businesses reflect increased demand from market participants seeking analytics and risk assessment amid uncertain conditions. These services span global capital, commodity and automotive markets and serve a range of clients including investment professionals, corporate entities and government agencies.