S&P Global Inc. (SPGI): 5 FORCES Analysis [Nov-2025 Updated]

You're looking to size up the competitive fortress around S&P Global Inc. (SPGI) heading into late 2025, and honestly, the picture is complex. While their regulatory moat supports a projected adjusted margin outlook of 50% to 50.5% for the year, that strength doesn't mean the pressure is off; for instance, their top 100 institutional customers still account for 37% of 2023 revenue, giving them real negotiation muscle. We need to see how the duopoly in Ratings, the rivalry in Market Intelligence, and the high barriers to entry in Credit Ratings balance out against the threat of open-source data substitutes. Dive in below to see my force-by-force breakdown-it maps the near-term risks and opportunities you need to factor into your valuation model right now.

S&P Global Inc. (SPGI) - Porter's Five Forces: Bargaining power of suppliers

You're analyzing S&P Global Inc.'s supplier landscape, and honestly, the power held by key data providers is a major factor you need to watch. Data uniqueness is the name of the game here, and for S&P Global, switching away from a core, proprietary data source can mean significant operational disruption and high costs. Think about it; their entire value proposition rests on the quality and exclusivity of the information they aggregate and analyze.

To see how S&P Global is pushing back against this supplier leverage, look at their recent strategic moves. For instance, S&P Global announced the deal to buy markets data and analytics firm With Intelligence in October 2025 for $1.8 billion. That kind of investment shows they are actively buying unique data assets to either bring them in-house or integrate them, which directly reduces reliance on other external data vendors. It's a clear counter-move to supplier power.

Still, managing the overall supply chain for technology and services requires a broad approach. Here's a quick look at some key figures related to their operational spending and internal capabilities, which help balance supplier power:

The company definitely works to mitigate concentration risk by not putting all its eggs in one vendor basket. They actively manage a diverse base of technology and service providers to keep any single supplier from gaining too much negotiating leverage. This diversification is key to maintaining cost control and service continuity.

Furthermore, S&P Global is building more of its core infrastructure internally, which is a powerful way to reduce dependence on external software providers. They are clearly focused on owning the technology stack for their most sensitive operations. This internal focus is reflected in their development efforts:

• $456 million R&D investment in 2023 helps fund proprietary development.
• Internal software development handles approximately 78% of critical systems.
• This internal control limits the pricing power of external software vendors.
• The investment in R&D helps them develop competing or complementary products.

If onboarding takes 14+ days, churn risk rises.

S&P Global Inc. (SPGI) - Porter's Five Forces: Bargaining power of customers

You're assessing how much leverage your biggest clients have over S&P Global Inc. (SPGI) right now, late in 2025. Honestly, the power dynamic here is a tug-of-war, with some segments showing very little give.

Customer concentration is a real factor in the negotiation process. For instance, the top 100 large institutional customers accounted for 37% of S&P Global Inc.'s 2023 total revenue, which was $12.49 Billion USD that year. That level of reliance on a relatively small group definitely gives those specific clients a stronger seat at the table when contract terms are being set.

Still, S&P Global Inc. builds significant barriers to exit, meaning switching costs are high for major clients. Think about the Indices division: it serves as the DNA for $1.5 trillion of the world's indexed assets, publishing benchmarks that form the basis for 575 ETFs globally, representing $387 billion in assets invested. When a client's entire investment process, models, and compliance framework are built around these deeply integrated platforms, the procedural and relational costs of moving to a new provider become substantial.

However, in the Market Intelligence space, customers have clear alternatives, which tempers power somewhat. They can certainly choose rivals like Bloomberg or FactSet Research Systems Inc. for data and analytics needs. To be fair, S&P Global Inc. holds a strong 15% market share in the Information Services segment, trailing only Bloomberg, so they maintain a leading position despite the competition.

The Ratings segment presents the most inelastic demand, which is a huge advantage. Demand for S&P Global Ratings is inelastic because many investment mandates defintely require them for issuing debt or for regulatory compliance. A credit rating is a forward-looking opinion about creditworthiness, essential for fixed income investments. If a client needs to issue bonds or meet specific fund requirements, they must secure a rating from a major agency, limiting their ability to negotiate aggressively on price or walk away entirely.

Here's a quick look at some relevant figures as of mid-2025:

You should keep an eye on a few things that directly impact this force:

• Top 100 customers drive 37% of the 2023 revenue base.
• High integration locks in clients across Indices and Market Intelligence.
• Rivals like Bloomberg and FactSet compete directly in data services.
• Ratings demand remains highly inelastic due to mandate requirements.

Finance: draft 13-week cash view by Friday.

S&P Global Inc. (SPGI) - Porter's Five Forces: Competitive rivalry

You're looking at the core battlegrounds for S&P Global Inc. (SPGI) right now, late in 2025. The rivalry is sharp, but some areas show clear dominance.

The Credit Ratings segment is a classic, intense duopoly. S&P Global Ratings and Moody's Corporation effectively control the vast majority of the market. Some data suggests S&P Global Ratings holds about 47.81%, while Moody's holds around 30.59%, with Fitch at 11.86%, meaning the top three control over 90% of the market. This concentration means direct, head-to-head competition for issuer mandates is fierce, though the high barriers to entry protect the overall structure.

In Market Intelligence, the fight is much broader and more fragmented. S&P Global Market Intelligence faces fierce competition from established giants like Bloomberg, Thomson Reuters, and ICE. For instance, in the second quarter of 2025, S&P Global Market Intelligence reported revenue of $1.22 billion, with Data, Analytics, & Insights growing at 6%. The company has set a medium-term organic, constant currency revenue growth target for this division between 6% and 8%.

Overall, S&P Global is executing well despite this rivalry. The company projects enterprise total revenue growth for 2025 in the range of 7% to 8%.

The rivalry is significantly mitigated in the S&P Dow Jones Indices business. This division enjoys a dominant market position in benchmarking. More assets are invested in products based on S&P Dow Jones Indices than products based on indices from any other provider globally. The iconic S&P 500 index alone covers approximately 80% of the total market capitalization of U.S. public companies, which stood at more than $57.401 trillion as of August 29, 2025.

Here's a quick look at the divisional revenue performance and targets to frame the competitive intensity:

The competitive landscape within the core segments shows clear differences in momentum:

• Credit Ratings: Duopoly with Moody's, each holding roughly 40% share.
• Indices: Dominant position; S&P 500 covers 80% of U.S. public company market cap.
• Market Intelligence: Direct competition with Bloomberg, Thomson Reuters, and ICE.
• Overall SPGI: Expecting 7% to 8% total revenue growth for 2025.

Finance: draft competitive positioning analysis for Market Intelligence vs. Bloomberg by next Tuesday.

S&P Global Inc. (SPGI) - Porter's Five Forces: Threat of substitutes

You're looking at S&P Global Inc.'s competitive landscape as of late 2025, and the threat of substitutes is definitely a nuanced one. For the data-heavy divisions, the pressure is real, but for the core Ratings business, regulation acts like a very thick moat.

Open-source financial data and specialized fintech platforms offer low-cost alternatives, especially targeting the data and analytics needs S&P Global Inc.'s Market Intelligence division serves. While S&P Global Inc. reported 6% year-over-year revenue growth in Q2 2025, reaching $3.755 billion, the underlying segments face different pressures. Consider the scale:

The industry trend shows that 87% of financial services respondents see open-source software (OSS) as critical to their future in 2025, and 84% believe it's essential for the sector overall. What this tells me is that for non-mandated data services, the cost-benefit analysis is shifting; 53% of organizations cited reducing cost as their top reason for choosing OSS this year, a big jump from 37% last year.

Internal modeling capabilities of large financial institutions can bypass some data purchases, especially as they build out their own data lakes. This is a direct challenge to the data licensing revenue streams. We see this reflected in the focus areas for OSS investment, where database and data technologies are a priority for 33.33% of firms. It's about building in-house capability rather than just subscribing.

Alternative data sources, like web scraping and specialized data aggregators, are challenging traditional Market Intelligence data. S&P Global Inc. is fighting back by partnering with hyperscale platforms like Microsoft and Anthropic to distribute its data, aiming to keep its proprietary datasets central to AI workflows. Still, the appetite for alternatives is clear, given that 96% of surveyed professionals increased or maintained their use of OSS in the past year.

Direct substitutes for mandated credit ratings are minimal due to regulatory entrenchment. For instance, in the US, the credit rating regime's equivalence with the EU CRA Regulation was confirmed, meaning ratings from S&P Global Ratings are still recognized for specific regulatory purposes there. Even in other jurisdictions, like India, while regulators such as SEBI are streamlining timelines-moving from calendar days to 7 working days for press release publication-the requirement for an NRSRO rating remains. We see this structural reliance in practice; for one firm reported in September 2025, their Capital-to-Risk Weighted Assets Ratio (CRAR) of 31.3% was well above the regulatory minimum of 15%, showing compliance reliance is baked in.

Here are the key areas where substitutes are gaining traction:

• OSS adoption critical to 87% of financial firms (2025).
• Cost reduction cited by 53% as top OSS driver (2025).
• Database/data tech investment in OSS at 33.33%.
• Market Intelligence Q2 2025 revenue: $1.22 billion.

The Ratings segment's Q2 2025 revenue was $1.15 billion, but its regulatory moat keeps the threat of direct substitution low, unlike the data-centric Market Intelligence unit.

S&P Global Inc. (SPGI) - Porter's Five Forces: Threat of new entrants

Regulatory hurdles and established trust create extremely high barriers in Credit Ratings.

• S&P Global Inc. operates in a duopoly for credit ratings with Moody's.
• S&P Global Ratings upgraded Safehold to A- from BBB+ on November 24, 2025.
• Accreditation requirements lock out a majority of non-accredited investors from certain access points.

Significant capital investment is required to build a comparable global data infrastructure.

Network effects from S&P Dow Jones Indices' benchmarks are nearly impossible to replicate.

• S&P Dow Jones Indices calculates over 830,000 indices.
• Benchmarks provide the basis for 575 ETFs globally.
• Assets invested in products based on S&P Dow Jones Indices' benchmarks exceed products from any other provider globally.
• The S&P Dow Jones Indices serves as the DNA for $1.5 trillion of the world's indexed assets.
• The Dow Jones Industrial Average market capitalization was $22.9 trillion as of October 31, 2025.

AI-driven startups, like the acquired TeraHelix, could lower entry barriers for analytics.

S&P Global Inc. completed the acquisition of TeraHelix on June 9, 2025, to bolster AI-driven data modeling. The financial terms were not disclosed and were noted as non-material to S&P Global Inc. This move followed S&P Global Inc.'s Q1 2025 adjusted EPS of $4.37. S&P Global Inc.'s Q3 2025 revenue was $3.89 billion, representing an 8.8% year-on-year increase. TeraHelix specialized in enterprise-scale data frameworks.