Morningstar (MORN) Q1 2026 earnings summary

Executive summary

• Revenue grew 10.8% year-over-year to $644.8 million, with organic revenue up 7.6% driven by strong performance in Credit, Direct Platform, and PitchBook.

• Adjusted operating income rose 31.9% to $178.6 million, and adjusted operating margin reached 27.7%.

• Operating income increased 36.6% to $155.9 million, with operating margin expanding to 24.2%.

• Net income was $107.1 million, up from $78.5 million year-over-year.

• Acquisition of CRSP completed for $363 million, contributing to margin improvement and strengthening the Indexes segment.

Financial highlights

• Free cash flow declined 8.8% to $53.6 million due to higher capital expenditures.

• Cash, cash equivalents, and investments totaled $532.2 million at quarter-end.

• Total outstanding debt increased to $1,712.8 million, reflecting new credit facility draws for the CRSP acquisition.

• Dividend of $0.50 per share declared and $19.9 million in dividends paid.

• Share repurchases totaled $300 million in Q1 2026, reducing shares outstanding by 4% in the quarter.

Outlook and guidance

• Management expects continued investment in technology and office infrastructure for the remainder of 2026.

• Forward-looking statements highlight uncertainties and risks, including market volatility, regulatory changes, and integration of acquisitions.

• Available liquidity and credit facilities are expected to be sufficient for at least the next 12 months.

• Focus remains on profitability and innovation, with new proprietary products launched.