Is SPGI a good stock to buy? We came across a bullish thesis on S&P Global Inc. on Compounding Dividends’s Substack by TJ Terwilliger. In this article, we will summarize the bulls’ thesis on SPGI. S&P Global Inc.’s share was trading at $412.45 as of March 26th. SPGI’s trailing and forward P/E were 28.95 and 21.60 respectively according to Yahoo Finance.
S&P Global is a cornerstone of the global financial system, best known for managing the S&P 500, one of the world’s most widely used benchmarks. Despite generating over $14 billion in annual revenue and maintaining a 54-year streak of dividend increases, the company’s stock has declined roughly 22% over the past six months, reflecting market concerns around AI disruption and uncertainty tied to the integration of IHS Markit.
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S&P Global operates across five core segments—Market Intelligence, Ratings, Commodity Insights, Indices, and Mobility—serving governments, financial institutions, and investors globally with a diversified, largely recurring revenue base.
The company’s competitive moat is exceptionally strong, built on network effects, regulatory entrenchment, and proprietary data. Its indices business benefits from a powerful flywheel as more assets track its benchmarks, while its credit ratings division operates within an oligopoly alongside Moody’s and Fitch Ratings, with its ratings deeply embedded in financial regulations. Additionally, S&P’s vast historical datasets, commodity pricing benchmarks, and unique assets like CARFAX reinforce its indispensability.
While the IHS Markit acquisition has temporarily pressured returns on invested capital, adjusted metrics suggest the business continues to generate strong underlying returns. Management, led by CEO Martina L. Cheung, is focused on integration, capital allocation, and strategic execution.
With secular tailwinds from rising global debt and passive investing, alongside resilient subscription revenues, S&P Global remains well-positioned. Although risks such as regulatory scrutiny, issuance volatility, and AI disruption persist, the company’s entrenched position and data advantage provide a compelling long-term investment case.
Previously, we covered a bullish thesis on S&P Global Inc. (SPGI) by Felix in April 2025, which highlighted its undervaluation based on reverse DCF analysis, strong free cash flow growth, and achievable long-term expectations. SPGI’s stock price has depreciated by approximately 12.37% since our coverage due to risks such as regulatory scrutiny, issuance volatility, and AI disruption persisting. TJ Terwilliger shares a similar view but emphasizes on its durable moat, recurring revenues, and long-term structural tailwinds.
S&P Global Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held SPGI at the end of the fourth quarter which was 110 in the previous quarter. While we acknowledge the risk and potential of SPGI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPGI and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
