S&P Global ( SPGI.N ) has reaffirmed its current entry requirements for key indices, effectively barring Elon Musk’s SpaceX from being added to the benchmark S&P 500 index (.SPX) quickly. The decision deals a significant blow to SpaceX’s ambitions to enter the initial index after its expected initial public offering (IPO). SpaceX is an aerospace manufacturer and space transportation services company, best known for its rockets and Starlink satellite Internet construction. It is targeting a substantial increase of $75 billion and a valuation of $1.75 trillion, making it one of America’s most valuable listed firms, despite the fact that only a fraction of its shares are expected to trade publicly.
“Financial viability, seasoning, and IWF (Investment Weighting Factor) requirements should not be awarded solely on the basis of market capitalization,” S&P said. A key hurdle for S&P 500 inclusion is that a company must demonstrate profitability under generally accepted accounting principles (GAAP) in its most recent quarter, as well as the sum of its four most recent quarters. SpaceX reportedly recorded a net loss of $4.94 billion in 2025, even as its revenue grew 33 percent to $18.67 billion, failing to meet that key profitability benchmark.
While S&P consulted with investors about possibly dropping minimum float and profitability rules for megacap listings, the index provider ultimately maintained its strict standards for its flagship index. Art Hogan, chief market strategist at B. Riley Wealth, praises the rules-based approach of the S&P Dow Jones Indices, stressing the importance of profitability to index entries. In contrast, Nasdaq has already adjusted its rules, allowing newly listed megacaps like SpaceX to be easily included in its Nasdaq 100 (.NDX) index. S&P Global also confirmed that it will modify the rules of entry for its broader S&P Total Market Index and the Dow Jones US Total Stock Market Index, paving the way for SpaceX in those less widely followed benchmarks. Additionally, SpaceX is eligible for inclusion in the Russell US Equity Index and FTSE Global Equity Index series under its accelerated entry provisions.
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