Key Highlights

  • Revenue grew 8.9% to USD 672.1 million in Q3 2026, with organic revenue up 6.8%.
  • Operating income rose 31.0% to USD 167.4 million, lifting operating margin to 24.9% from 20.7%.
  • Morningstar Credit revenue increased 18.3% to USD 107.8 million, and its adjusted operating margin reached 37.7%.
  • The company repurchased 486,573 shares for USD 100.0 million, leaving USD 200.0 million of its authorization available.

Morningstar, Inc. (NASDAQ:MORN) reported third-quarter 2026 revenue of USD 672.1 million, up 8.9% from USD 617.4 million and above a consensus estimate of USD 664.8 million. GAAP diluted EPS was USD 3.06 against USD 2.17 a year earlier, compared with a consensus estimate of USD 3.04. The quarterly filing presents GAAP per-share figures only, with no adjusted EPS measure.

Consolidated net income was USD 115.5 million, up from USD 91.6 million. Diluted shares outstanding fell to 37.8 million from 42.3 million, which supported the per-share gain. Organic revenue, which strips out acquisitions, divestitures and currency, rose 6.8%, and revenue from the CRSP acquisition and other deals added USD 14.8 million.

Segment Performance and Margins

Operating income climbed USD 39.6 million to USD 167.4 million, while adjusted operating income rose 26.1% to USD 189.9 million, a margin of 28.3% against 24.4%. Cost of revenue fell to 35.8% of revenue from 39.1%, a 3.3 percentage point decline, largely on lower bonus expense, though technology infrastructure costs linked to cloud migration and AI work rose USD 6.6 million.

Morningstar Direct Platform revenue grew 5.4% to USD 222.5 million with a 46.8% adjusted margin. PitchBook revenue rose 3.9% to USD 175.6 million, but adjusted operating income slipped 1.1% to USD 52.3 million as the company cited softer growth in corporate and venture capital client segments and higher churn. Morningstar Credit adjusted operating income grew 44.5% to USD 40.6 million on strong issuance. Morningstar Retirement revenue grew 21.3%, while Morningstar Wealth revenue fell 4.3%, partly from sunsetting Morningstar Office.

Cash Flow, Debt and Risk Factors

Cash provided by operating activities was USD 190.7 million in the quarter, and free cash flow was USD 155.4 million, down 2.9%. For nine months, free cash flow rose 17.8% to USD 331.5 million. Cash, cash equivalents and investments totaled USD 524.6 million, with about 87% held outside the US.

Outstanding debt under the 2025 credit agreement was roughly USD 1.3 billion, including USD 590.0 million drawn on the revolver, with USD 160.0 million of revolver availability. Funded debt to EBITDA stood at about 1.8 times. The company listed risks including market volatility affecting asset-based revenue, the cost and reputational effects of AI, cybersecurity events and client decisions to build in-house tools. The filing sets no numeric guidance.

Figures That Frame the Next Report

Four figures frame the next report. PitchBook adjusted margin of 29.8%, down 1.5 percentage points, and licensed user growth of 4.6% are the first reference. The second is Morningstar Credit, where issuance volumes drove transaction revenue of USD 101.4 million. The third is the repurchase program, with USD 800.0 million used of the USD 1.0 billion authorization that expires October 30, 2028. The fourth is leverage, as interest expense, net, reached USD 17.6 million compared with USD 7.0 million a year earlier, and leases for London, Chicago and Frankfurt offices represent about USD 178.0 million of obligations not yet commenced.