Key Highlights

  • Consensus EPS of 3.04 compares with second-quarter diluted EPS of 2.83, against 2.09 a year earlier.
  • Consensus revenue of USD 664.75 million compares with second-quarter revenue of USD 663.2 million, against USD 605.1 million.
  • Operating income was USD 160.6 million against USD 125.1 million, and operating margin was 24.2% against 20.7%.
  • Free cash flow was USD 122.5 million against USD 62.4 million, with cash from operations at USD 155.7 million.

Morningstar (NASDAQ:MORN) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 3.04 on revenue of USD 664.75 million, and the company has a market capitalization of USD 8.45 billion.

Morningstar reports revenue across platforms that include Morningstar Direct. Second-quarter revenue was USD 663.2 million against USD 605.1 million, and net income was USD 107.8 million against USD 89.0 million.

Estimates Against the Last Reported Quarter

The EPS estimate of 3.04 is above the second-quarter diluted EPS of 2.83, which compared with 2.09 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 664.75 million is above the USD 663.2 million reported, which compared with USD 605.1 million.

Basic EPS was 2.85 against 2.11, and the dividend declared was 0.50 per share against 0.46.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing states that the acquisition date fair values of certain assets and liabilities, including intangible assets, are provisional and subject to revision within one year. It states that the effective tax rate increased in 2026 due to deferred taxes recorded in the second quarter on unremitted foreign earnings.

Operating Margin and Cash Flow Detail

Operating income was USD 160.6 million, up 28.4%, and operating margin was 24.2% against 20.7%. For six months, operating income was USD 316.5 million against USD 239.2 million.

Cash provided by operating activities was USD 155.7 million against USD 99.0 million, and capital expenditures were USD 33.2 million against USD 36.6 million. Free cash flow was USD 122.5 million against USD 62.4 million.

Morningstar Direct, Acquisitions and Share Repurchases

Morningstar Direct Platform revenue was USD 222.1 million against USD 209.2 million, up 6.2%, and adjusted operating margin was 45.2% against 46.0%. Cost of goods and services sold was USD 239.3 million against USD 230.6 million.

For six months, acquisitions, net of cash acquired, were USD 359.6 million against USD 39.1 million, and common shares repurchased were USD 400.0 million against USD 221.6 million. Revenue was USD 663.2 million against USD 605.1 million, and income before income taxes was USD 147.0 million against USD 116.5 million. Net income was USD 107.8 million against USD 89.0 million, and operating income was USD 160.6 million against USD 125.1 million. Six-month dividends paid were USD 38.9 million. Basic EPS was 2.85 against 2.11, and diluted EPS was 2.83 against 2.09. The estimates table lists a market capitalization of USD 8.45 billion.

Markers for the Release

Reported EPS against 3.04 and revenue against USD 664.75 million are the headline comparisons. Other markers are operating margin, free cash flow and share repurchases.