S&P Global shares fell more than 3% in late-session trading on Tuesday. The decline followed the release of the company’s quarterly results.
The US-Iran War made it harder to boost pricing on contracts for the energy data, news and analysis unit. This geopolitical context weighed on the performance of one of the company's key segments during the quarter.
Revenue performance and structural changes
S&P Global reported Q2 revenue of nearly $4.15 billion, up 10% year-over-year. This figure topped the consensus analyst estimate of $4.09 billion.
On a pro forma basis excluding Mobility Global, S&P Global's Q2 revenue was just under $3.68 billion, up 11% year over year. S&P Global spinoffed its automotive data and analysis business, Mobility Global, into a separate company effective the beginning of July.
Earnings discrepancies across reports
Non-GAAP adjusted net income for S&P Global grew 19% to almost $1.43 billion, or $4.83 per share. This result beat analysts' expectation of $4.75 per share.
All four of S&P Global's legacy business units posted revenue gains. Indices revenue rose 20% to $534 million, while market intelligence increased 6% to $1.29 billion. Energy revenue grew 2% to $568 million, and ratings revenue jumped 17% to nearly $1.34 billion.