In this year’s Investor Fact Book, we are highlighting:
The new strategic vision and medium-term financial targets post-merger
Accelerating innovation with generative AI & LLMs with Kensho
Growth through Private Markets, Sustainability & Energy Transition, and Risk Assessment
For decades, S&P Global has demonstrated its commitment to its customers, its people, and the communities in which we all live and work. The last year has provided ample opportunity for us to highlight the importance of our products and services to our customers, the resiliency of our business, and our commitment to disciplined execution.
Following the merger with IHS Markit in February 2022, we immediately set to work integrating our teams and operations, delivering on promised synergies, and galvanizing around a common vision for the future of the company – Powering Global Markets. This vision was unveiled to investors at our December Investor Day and was built on five strategic pillars: Customer at the Core, Grow & Innovate, Data & Technology, Lead & Inspire, and Execute & Deliver. We outlined plans that we believe will deliver strong and profitable revenue growth over a multi-year horizon, and reiterated our target to return at least 85% of free cash flow to investors through dividends and share repurchases.
We reinforced our commitment to transparency and accountability by introducing new key metrics, including Private Markets revenue, Sustainability & Energy Transition revenue, and the Vitality Index. We also began disclosing key market-observable data points on a monthly basis to help investors monitor specific measures of performance like Billed Issuance and Exchange-Traded Derivatives volumes.
To help investors measure performance over the course of 2022, we also provided non-GAAP pro forma adjusted financials that are included throughout this fact book. Additionally, we are including highlights in product development, artificial intelligence, and sustainability.
The goal of our Investor Fact Book is to serve as a resource for current and potential shareholders and analysts, and as always, we welcome feedback on ways we can make this resource more impactful.
| What we are doing |
How it is measured |
|
| Merger Revenue Synergies | Robust planning to identify cross-sell and new product opportunities | Run-rate synergies ~$350M in 2026 |
| Business Rationalization | Reorganize portfolio to focus on growth and synergies | Revenue growth and margin expansion |
| Technology Innovation | Plan developed to shift 5-10% of $2B+ annual spend from infrastructure to innovation | Tech spend on growth ~40% |
| Organic Investments | Central funds earmarked to invest in innovative growth opportunities | Vitality Index >10% |
| Transformational Adjacencies | Actively pursue key growth areas— Sustainability and Energy Transition and Private Markets | Revenue growth |
| Enterprise 2025 / 2026 Target Model | |
| Financial Organic Revenue |
~7%–9% annual growth |
| Adjusted Operating Margin | 48% to 50% |
| Adjusted Diluted EPS | Low- to mid-teens growth |
| Capital Management Capital Return |
85% FCF |
| Leverage | 2.0x – 2.5x |
| Dividend Payout | 20% – 25% |
Note: Excludes Engineering Solutions
| Annual Organic Revenue Growth |
Adjusted Operating Margin |
|
 |
7% – 9% | 35% – 37% |
 |
6% – 9% | 58% – 60% |
 |
7% – 9% | 48% – 50% |
 |
7% – 9% | 41% – 43% |
 |
10%+ | 67% – 69% |
Targets were introduced at S&P Global’s Investor Day in December 2022. Cost synergy was introduced with a target of 80% and was increased to 85%. Revenue synergy was introduced with a target of ~50% achievement in 2024 and was changed to 45%
Cumulative synergies include synergies achieved both prior to, and since, the merger close on 2/28/2022 through the indicated period
Includes both recurring revenue and a portion of the one-time revenues we expect to achieve in subsequent years