| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 644.80 | 10.8% |
| Total Income | 644.80 | 10.8% |
| Expenditure | 489.80 | 4.7% |
| PBT | 141.80 | 30.7% |
| Net Profit | 107.10 | 36.4% |
| OPM | 24.18% | 4.57pp |
| NPM | 16.61% | 3.12pp |
| EPS | 2.74 | 49.7% |
Morningstar Reports Q1 2026 Revenue Up 10.8% to $644.8 Million, EPS Up 50.0%
30 Apr 2026 · 30 Apr, 2:24 am
Summary
Morningstar, Inc. reported strong financial results for the first quarter of 2026, with reported revenue increasing 10.8% to $644.8 million and organic revenue up 7.6%. Profitability saw significant growth, with reported operating income rising 36.6% to $155.9 million and diluted net income per share climbing 50.0% to $2.73. The company's operating margin expanded to 24.2%, reflecting improved efficiency. CEO Kunal Kapoor highlighted the creation of significant value through income growth and share reductions, alongside the introduction of new proprietary intellectual property.
Key Highlights
- 1
Morningstar, Inc. reported a 10.8% increase in reported revenue, reaching $644.8 million for the first quarter of 2026, with organic revenue growing by 7.6%.
- 2
Reported operating income surged by 36.6% to $155.9 million, while adjusted operating income increased 31.9% to $178.6 million.
- 3
Diluted net income per share saw a substantial increase of 50.0% to $2.73, and adjusted diluted net income per share rose 42.6% to $3.18.
- 4
The company's operating margin improved to 24.2% in Q1 2026, up from 19.6% in the prior-year period, with adjusted operating margin reaching 27.7%.
- 5
Morningstar Credit was a standout performer, with revenue increasing 38.4% to $101.0 million, driven by a robust issuance market.
- 6
Share repurchases totaled 1,723,412 shares for $300.0 million, contributing to a roughly 4% reduction in shares outstanding during the quarter.
Management Comments
Kunal Kapoor
In the first quarter, we created significant value, growing operating and adjusted operating income by more than 30%, while reducing shares outstanding by roughly 4% for a total of more than 10% over the past 12 months. On the product front, we introduced new proprietary intellectual property, including PitchBook's daily valuation estimates for venture capital-backed companies and public-market-style research on leading private firms.
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