Market reaction
Stocks of several major financial information firms slid Tuesday after S&P Global released quarterly results and forward guidance that failed to meet analyst forecasts. Moody’s Corporation (NYSE:MCO) fell 5%, FactSet Research (NYSE:FDS) declined 2%, and MSCI Inc (NYSE:MSCI) slipped 2.7% as investor sentiment turned cautious around the sector.
What S&P Global reported
S&P Global’s fiscal 2026 earnings-per-share outlook came in at $19.40 to $19.65, short of the $19.96 consensus estimate. The company also provided a range for organic constant-currency revenue growth of 6.0% to 8.0%, and reported revenue growth of 6.6% to 8.6% for the period referenced in its update. The combination of an EPS range below consensus and revenue guidance that signaled more modest growth prompted a sharp move lower in S&P Global stock, which tumbled as much as 13%.
Sector spillover
Investors reacted to S&P Global’s guidance as a potential signal of broader pressures facing providers of financial data and analytics, and that concern spilled over to peers. The declines in Moody’s, FactSet and MSCI reflected a market view that the headwinds identified at S&P Global could affect demand and growth across the group of companies that supply ratings, data, indices and analytics to financial markets.
Near-term company focus
Moody’s, which offers credit ratings, research and risk analytics, is due to report its next quarterly results next Wednesday. With S&P Global’s outlook prompting sector scrutiny, Moody’s upcoming report will be watched closely by investors looking for signs that its performance diverges from or mirrors the challenges signaled by its peer.
Industry context
The financial information services sector has benefited in recent years from stronger demand for data and analytics. However, Tuesday’s market response suggests mounting concerns among market participants about the industry’s future growth trajectory and valuation levels. The moves underscore how guidance from a major industry participant can influence sentiment for related companies.
Note: This article reports market movements and corporate guidance as released by the companies named. It does not introduce new data beyond those reported.