Watch for continued margin expansion as the company benefits from operating leverage and lower compensation costs. Monitor PitchBook growth trajectory and adoption of new AI products (Direct AI, PitchBook AI) which could re-accelerate license-based revenue. The retirement segment's 21.3% organic growth and advisor managed account momentum are key drivers to track.
Price Chart
Executive Summary
Morningstar reported Q3 2026 revenue of $672.1M (+8.9% YoY, +6.8% organic) and diluted EPS of $3.06 (+41.0% YoY), both above consensus estimates of $664.7M and $3.04. Operating income rose 31.0% to $167.4M and adjusted operating margin expanded to 28.3%. The company repurchased $100M in shares during the quarter, bringing year-to-date buybacks to $500M. The strong results were driven by Morningstar Credit (+18.3% revenue) and Morningstar Retirement (+21.3%), while PitchBook growth slowed to 3.9%.
Key Financial Metrics
Key Facts
- Revenue of $672.1M, up 8.9% YoY (organic +6.8%), above $664.7M consensus
- Diluted EPS of $3.06, up 41.0% YoY, above $3.04 consensus
- Adjusted diluted EPS of $3.48, up 36.5% YoY
- Operating income of $167.4M, up 31.0% YoY; adjusted operating income of $189.9M, up 26.1%
- Operating margin expanded to 24.9% (from 20.7%); adjusted operating margin to 28.3% (from 24.4%)
- Free cash flow of $155.4M, down 2.9% YoY due to working capital movements
- Share repurchases of $100M in Q3, $500M YTD; shares outstanding reduced 6.6% since end of 2025
- Morningstar Credit revenue +18.3% to $107.8M; Morningstar Retirement +21.3% to $41.5M
- PitchBook revenue +3.9% to $175.6M, adjusted operating income -1.1%
- Launched Direct AI platform with agentic capabilities; 3,500 users logged in with 42,000+ prompts submitted
Financial Impact
Revenue beat consensus by $7.4M (1.1%); EPS beat by $0.02 (0.7%). Operating income grew 31% YoY, margins expanded 420 bps.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Morningstar Direct Platform | $222.5M | +5.4% |
| PitchBook | $175.6M | +3.9% |
| Morningstar Credit | $107.8M | +18.3% |
| Morningstar Wealth | $59.4M | -4.3% |
| Morningstar Retirement | $41.5M | +21.3% |
| Corporate and All Other | $65.3M | +30.9% |
Risk Factors
- PitchBook growth decelerating to 3.9% with adjusted operating margin declining 150 bps
- Free cash flow declining 2.9% YoY despite higher earnings
- Morningstar Wealth revenue declining 4.3% due to product sunsetting
- Elevated leverage ratio of 1.8x following CRSP acquisition debt
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001289419-26-000056 |
| Document: morningstarq32026supplem.htm | 0001289419-26-000056 |
| Document: morn-20261028.htm | 0001289419-26-000056 |
| Document: morningstarq32026ceolett.htm | 0001289419-26-000056 |
| Document: 0001289419-26-000056-index-headers.html | 0001289419-26-000056 |
| Document: 0001289419-26-000056-index.html | 0001289419-26-000056 |
| Document: 0001289419-26-000056.txt | 0001289419-26-000056 |
| 8-K Data (Synthetic) | 0001289419-26-000056 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 4d ago | 8-K | $222.54 $226.19 | ▲ +1.64% | ▲ +3.41% | $226.19 (+1.64%) |
Oct 27, 2026 4d ago | Institutional Cluster | $214.86 $222.54 | ▲ +3.57% | ▲ +3.96% | $226.19 (+5.27%) |
Oct 23, 2026 9d ago | Institutional Cluster | $224.89 $225.29 | ▲ +0.18% | ▼ −0.53% | $226.19 (+0.58%) |
Sep 25, 2026 5w ago | 8-K | $191.56 $186.35 | ▼ −2.72% | ▼ −2.54% | $226.19 (+18.08%) |
Sep 18, 2026 6w ago | 8-K | $201.47 $195.23 | ▼ −3.10% | ▼ −3.08% | $226.19 (+12.27%) |
Aug 12, 2026 11w ago | Insider Cluster | $206.89 $207.41 | ▲ +0.25% | ▲ +0.45% | $226.19 (+9.33%) |
Aug 7, 2026 12w ago | Insider Cluster | $201.03 $195.38 | ▼ −2.81% | ▼ −2.49% | $226.19 (+12.52%) |
Aug 5, 2026 12w ago | Insider Cluster | $196.57 $200.66 | ▲ +2.08% | ▲ +1.47% | $226.19 (+15.07%) |
Jun 25, 2026 18w ago | 8-K | $154.65 $155.85 | ▲ +0.78% | ▼ −0.87% | $226.19 (+46.26%) |
Jun 18, 2026 19w ago | 8-K | $153.41 $156.21 | ▲ +1.83% | ▲ +3.28% | $226.19 (+47.44%) |
US Market Status
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