SPGI

S&P Global is a rare wide-moat compounding machine, and the FY2025 numbers show the flywheel working. Revenue rose 7.9% to $15.3B, but profitability grew far faster: operating profit +16.1% to $6.48B, net income +16.1% to $4.47B, and diluted EPS +18.7% to $14.66. Operating margin expanded from 39% to 42% (MD&A: 32%→39%→42% over three years) as the IHS Markit integration costs roll off — 2025's $6.48B operating profit is struck after $273M of disposition gains but also $157M severance, $92M disposition costs and $48M each of acquisition/legal costs, so the underlying margin is genuinely high, not a one-off. The five-segment mix (Market Intelligence, Ratings, Energy, Mobility, Indices) is a portfolio of subscription and benchmark franchises with pricing power, and management returned ~$15.1B to holders over three years ($11.6B buybacks + $3.5B dividends), shrinking the share count 4.9% in FY2025 alone via $5.0B of repurchases (+51.5% YoY) — a direct EPS tailwind that explains why EPS grew faster than net income.

The balance sheet supports the aggressive capital return. Liabilities/equity sits at a conservative 0.80x, retained earnings grew 12.8% to $23.7B, and operating cash flow of $5.65B dwarfs the tiny $195M capex bill — this is an asset-light, cash-gushing model. ROE of 14.4% looks unremarkable, but it is depressed by the enormous IHS Markit goodwill sitting in $31.1B of equity (equity actually fell 6.1% as buybacks outran retained earnings); on invested capital the returns are far higher than the headline ROE implies.