Financial data provider S&P Global announced Tuesday that first-quarter earnings climbed as clients increasingly turned to the company’s analytical services during a period marked by global tensions and market instability.
The earnings boost sent the company’s stock price up approximately 1.3% during premarket trading sessions.
Market turbulence, concerns about private lending, and international conflicts have driven investors to seek out sophisticated risk evaluation and market analysis tools, benefiting companies like S&P Global that specialize in these services.
The Manhattan-headquartered firm delivers credit evaluations, market benchmarks, analytical services, and workflow systems across global capital markets, commodities trading, and automotive sectors.
Fellow ratings company Moody’s similarly announced profit gains earlier in April, also citing increased client interest in research and analytical products.
S&P Global’s ratings division, which delivers credit evaluations, research, and analytics to investment clients, saw revenues surge 13% to reach $1.3 billion during the January-March period.
The company’s market intelligence division, serving investment professionals, corporations, and government entities with data and analytical tools, recorded an 8% revenue increase to $1.3 billion.
Overall company revenues grew 10% to $4.17 billion for the quarter.
Earnings per share reached $4.69 for the three-month period, marking an increase from the previous year’s $3.54 per share.
Despite the positive quarterly results, S&P Global stock has declined more than 15% year-to-date as investors express concerns about artificial intelligence potentially disrupting the software and services industry.
