$MORN · Morningstar, Inc.
Morningstar filed its 10-Q for the quarter ended September 30, 2026, reporting Q3 revenue of $672.1M (+8.9% YoY), operating income of $167.4M (+31% YoY), and diluted EPS of $3.06 versus $2.17 a year ago. The company repurchased $500M in shares over nine months, shrinking the share count by 10.6% YoY. Long-term debt rose to $1.66B from $1.07B at year-end 2025, funding $359.6M in acquisitions alongside the buyback program.
- Q3 revenue $672.1M (+8.9% YoY), operating income $167.4M (+31% YoY), diluted EPS $3.06 vs $2.17
- Nine-month operating income $483.9M vs $367.0M; operating margin expanded to 24.4% from 20.3%
- Shares outstanding fell to 37.1M from 41.5M a year ago — a 10.6% reduction via $500M in buybacks over nine months
- Long-term debt nearly doubled to $1.66B from $1.07B at year-end 2025, driven by $359.6M in acquisitions and buybacks
- Morningstar Indexes revenue surged 79% YoY to $39.0M in Q3; PitchBook segment revenue rose to $175.6M from $169.0M
Markets closed — no regular-session reaction yet; extended-hours move not captured here. At $214.86 and an $8.06B market cap, the strong operating leverage and aggressive buyback program are likely to be viewed favorably when trading resumes.
Morningstar delivered a rare combination of accelerating revenue growth, expanding margins, and aggressive capital return — but funded it with debt that doubled in nine months.
Morningstar's results mirror the broader financial data sector trend of license-based revenue growth and margin expansion through scale. The PitchBook segment competes directly with offerings from S&P Global and MSCI, while the surging Indexes business (Q3 revenue +79% YoY) is gaining share in the fast-growing passive-investing ecosystem.
Interest expense surged to $17.6M in Q3 from $7.0M a year ago as long-term debt ballooned to $1.66B to fund acquisitions and buybacks. Foreign currency translation losses of $18.2M over nine months vs a $47.9M gain last year create earnings volatility. Goodwill rose to $1.75B after $359.6M in acquisitions, increasing impairment risk if acquired assets underperform.