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S&P Global (SPGI) dropped 25% in one month after 2026 earnings guidance of $19.40-$19.65 missed the $19.96 consensus.
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S&P Global now trades at 21x estimates, its lowest valuation in five years versus a 30x average.
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The company posted a 39% free cash flow margin and maintains 50+ consecutive years of dividend increases.
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S&P Global (NYSE:SPGI) shares have plunged due to the so-called “SaaS-pocalypse” sell-off that hit software-as-a-service stocks hard. That was followed by another sharp drop after the global ratings and index provider’s fourth-quarter earnings report. While it beat revenue expectations, guidance for 2026 came in below forecasts. Still, the company showed solid growth across segments and strong cash flow.
Even so, S&P Global has tumbled 25% in the past month, hitting a 52-week low of $381.61 per share before bouncing back over the past two trading days. Yet, with more than 50 years of dividend increases, is this a buy-the-dip opportunity for a business with strong data advantages and reliable returns, or is there more room to fall?
The company runs four main segments:
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Global Ratings: Provides key credit ratings for financial markets.
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Dow Jones Indices: Manages benchmarks like the S&P 500, tied to trillions in assets.
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S&P Global Market Intelligence: Supplies data and analytics for investors.
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Global Commodity Insights and Engineering Solutions: Offers specialized energy and commodities data.
S&P Global’s revenue hit $3.92 billion, up 9% year-over-year and above the $3.91 billion expected. Non-GAAP earnings rose 14% to $4.30 per share, just shy of the $4.32 per share forecast. Adjusted full-year 2025 EPS reached $17.83.
Importantly, all business segments expanded margins and grew revenue at upper single-digit rates. This shows the company’s core operations remain resilient despite economic uncertainty and negative investor mood.
S&P’s gross margin has stayed around 69% to 70% for a decade, showing pricing power and cost control. Last year’s free cash flow margin hit 39%, meaning it threw off nearly $39 in cash for every $100 it made in revenue — greater than the year-ago period thanks to higher sales and efficiency.
This cash powers dividends, investments, and possible buybacks, strengthening the balance sheet and creating long-term value.
As a Dividend King, S&P Global has raised payouts for over 50 consecutive years. The current yield is about 0.92%, with a 10-year dividend growth rate of 10.3%. Last year’s smaller hike was related to a planned business spinoff to simplify its operations. Still, the dividend stays well-covered by earnings and cash flow, making it dependable even in volatile markets.
