S&P Global keeps index rules unchanged, delaying SpaceX path to S&P 500

Traders Union
All News
Financial News
S&P Global delays SpaceX

Highlights

S&P Global kept S&P 500 eligibility rules unchanged, requiring profitability over the last quarter and four quarters, delaying SpaceX inclusion despite its $18.67 billion revenue and $4.94 billion net loss in 2025.
SpaceX's IPO, targeting a $75 billion raise and a top-10 U.S. firm valuation, will seek index inclusion but remains blocked from S&P 500 due to profitability requirements.
SpaceX may enter Nasdaq 100, Russell U.S. Equity Indexes, and FTSE Global Equity Index Series sooner as those benchmarks have less restrictive or accelerated entry requirements compared to the S&P 500.

Index eligibility rules remain intact

S&P Global said on Thursday that it is not revising the requirements for admission to its flagship indexes, despite investor consultation on possible changes for large newly listed companies. The unchanged standards mean companies still need to meet tests tied to profitability, seasoning and investable weight factor, and S&P said exceptions should not be granted solely because of market capitalization.

Under the rules left in place, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter and across the combined most recent four quarters to qualify for the S&P 500. SpaceX posted a net loss of $4.94 billion in 2025, even as revenue rose 33% to $18.67 billion.

Musk has been reshaping the customary IPO approach for SpaceX by pushing for broader retail investor participation, seeking early index inclusion and preserving strong founder control through governance design. The company is raising $75 billion and is targeting a valuation that would place it among the 10 most valuable U.S.-listed firms.

Market impact for index funds and exchanges

The S&P 500 remains Wall Street's most widely tracked benchmark, so inclusion would force passive funds with trillions of dollars in assets to buy SpaceX shares. Art Hogan, chief market strategist at B. Riley Wealth, said the decision supports the credibility of a rules-based index process and argued that making exceptions for very large but still unprofitable companies would not make much sense.

Nasdaq has already introduced changes that make it easier for SpaceX, Anthropic and other newly listed megacaps to enter the Nasdaq 100. Once SpaceX joins that index, Nasdaq 100 funds are expected to buy a sizeable share of the stock available for public trading.

At the same time, exchange operators are intensifying efforts to attract new listings as SpaceX, Anthropic and OpenAI move closer to public offerings, amid concern over the long-running decline in the number of U.S.-listed companies. S&P Global said it will modify entry rules for the broader S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, opening a route for SpaceX into those less followed benchmarks, while the company is also already eligible for Russell U.S. Equity Indexes and the FTSE Global Equity Index Series under FTSE Russell's fast-entry rules.

Our earlier coverage of S&P Global’s stance on SpaceX’s looming listing explained that the index provider is keeping its fast-entry criteria unchanged, emphasizing profitability, seasoning and investable weight factor requirements. We noted that S&P would not grant exceptions based solely on massive market capitalization, a policy that could delay SpaceX’s entry into major benchmarks and shape the broader debate over how mega-cap IPOs should be treated by index rules.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.