SP

S&P Global Inc. stock research

Dec 31, 2024

FY2025 Q4

S&P Global (SPGI) Gross Margin — Quarter Ended Dec 31, 2024

For the current quarter, revenue and gross profit remained stable compared to the immediately preceding quarter, yet gross margin weakened slightly. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2025 Q4

For the current quarter, revenue and gross profit remained stable compared to the immediately preceding quarter, yet gross margin weakened slightly. Relative to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.

  • The year-over-year improvement in gross margin is the strongest observable trend, as revenue growth outpaced the increase in cost of revenue. This relationship drove gross profit higher and expanded the margin compared to the prior year period.
  • Compared to the immediately preceding quarter, revenue and gross profit were stable, but gross margin weakened. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

69.2%

Gross profit

$2.5B

Revenue

$3.6B

Cost of revenue

$1.1B

Quarter-over-quarter change

-1.0 pts

Year-over-year change

+1.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$3.5B$2.4B$1.1B68.2%
Jun 30, 2024$3.5B$2.5B$1.1B69.6%
Sep 30, 2024$3.6B$2.5B$1.1B70.2%
Dec 31, 2024$3.6B$2.5B$1.1B69.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

-1.0 pts

Year-over-year change

Dec 31, 2023

+1.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The year-over-year improvement in gross margin is the strongest observable trend, as revenue growth outpaced the increase in cost of revenue. This relationship drove gross profit higher and expanded the margin compared to the prior year period.

Compared to the immediately preceding quarter, revenue and gross profit were stable, but gross margin weakened. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin improved.

Monitor cost of revenue trends relative to revenue, as a small change in that relationship contributed to the quarter-over-quarter margin decline.

SPGI Gross Margin — Quarter Ended Dec 31, 2024