• Reported revenue increased 4%; Adjusted revenue, excluding Engineering Solutions, increased 7%. Vitality revenue from new or enhanced products contributed 11% of reported revenue in Q2.
  • GAAP EPS decreased 44% due to gains on divestitures in Q2 2022, and adjusted diluted EPS increased 11% year over year. The Company is reiterating its 2023 consolidated guidance for revenue growth, operating margin, EPS, and Free Cash Flow. 
  • Previously announced $1 billion ASR to be completed and additional $500 million ASR to be launched in the coming weeks.
  • Divestiture of Engineering Solutions closed on May 2, 2023.

 “We are pleased to deliver revenue growth in the second quarter, and we anticipate further revenue growth through the remainder of the year.  We remain focused on creating customer value through the strength of our global brands, disciplined execution, and innovative use of our proprietary and differentiated data sets and benchmarks. With the current rapid pace of technological advancement, particularly in the area of Artificial Intelligence, we have never been more excited about the potential for powerful new solutions and tools that S&P Global will soon be able to bring to our customers.”   Douglas Peterson President and CEO

The Company’s reported operating profit margin decreased approximately 20 percentage points to 29.4%, primarily due to a $556 million gain on sale of dispositions recognized as an operating gain in the second quarter of 2022. Adjusted operating profit margin decreased 100 basis points to 46.2% primarily due to low incentive compensation accruals in the second quarter of 2022.

In addition to the above, the Company expects 2023 cash provided by operating activities, less capital expenditures and distributions to noncontrolling interest holders, in the range of $3.7 billion to $3.8 billion. The Company expects adjusted free cash flow, excluding certain items, in the range of $4.2 billion to $4.3 billion. 

The Company is reiterating GAAP guidance and non-GAAP adjusted guidance for the consolidated Company for the full year 2023, for both GAAP and adjusted revenue growth, operating profit margin, tax rate, and diluted EPS, as well as non-GAAP adjusted guidance for Free Cash Flow, excluding certain items. 

The Company is making minor adjustments to guidance metrics for both GAAP and adjusted Corporate Unallocated expense, and both GAAP and adjusted net interest expense which are each now expected to be approximately $10 million higher than previous guidance. 

GAAP and adjusted guidance include the contribution from Engineering Solutions in all periods up to the date of its sale on May 2, 2023. 

Non-GAAP adjusted guidance excludes merger expenses and amortization of intangibles related to acquisitions. Non-GAAP adjusted guidance is provided to reflect expected financial results for the full year, with growth rate guidance presented relative to non-GAAP pro forma adjusted measures for fiscal 2022, assuming the merger with IHS Markit (and associated divestitures) had closed on January 1, 2021. For non-GAAP adjusted guidance, growth rates compare revenue in the period ending December 31, 2023 to pro forma revenue and non-GAAP pro forma adjusted revenue for the period ended December 31, 2022. 

Source:  S&P Global Press Release