Morningstar Q1 revenue rises 10.8%

Morningstar

29/04/2026 21:33

Overview

Investment research provider's Q1 revenue rose 10.8% yr/yr, adjusted diluted EPS up 42.6%

Company repurchased $300 mln in shares during the quarter

Free cash flow fell 8.8% due to higher capital expenditures

Outlook

Company did not provide specific financial guidance or outlook for the current or future periods

Result Drivers

CREDIT SEGMENT GROWTH - Morningstar Credit revenue rose 38.4% yr/yr, driven by a robust issuance market and strength in Canadian and European corporates and US structured finance ratings

DIRECT PLATFORM AND PITCHBOOK - Morningstar Direct Platform, Morningstar Credit and PitchBook were major contributors to organic revenue growth, with Direct Platform growth from expansion with existing clients and PitchBook growth from core investor and advisor segments despite slower growth in venture capital and corporate clients

OPERATING EXPENSES - Higher compensation costs from currency effects and increased headcount, along with higher amortization and technology infrastructure costs, drove operating expenses higher

Company press release: ID:nBw9Xwtl8a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$644.80 mln
$626.91 mln (2 Analysts)
Q1 Adjusted EPS
Beat
$3.18
$2.66 (2 Analysts)
Q1 EPS
$2.73
Q1 Net Income
$107.10 mln
Q1 Operating Income
$155.90 mln
Q1 Operating Margin
24.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the professional information services peer group is "buy"

Wall Street's median 12-month price target for Morningstar Inc is $265.00, about 44.2% above its April 28 closing price of $183.73

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)