Morningstar Q3 2026: EPS Beats Expectations, Margin Hits 28.3%
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Credit ratings revenue jumped 18.3% on heavy corporate and ABS/RMBS issuance, lifting adjusted operating margin to 28.3% and beating expectations. That is the operating leverage the market has been waiting on.
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Morningstar posted adjusted earnings of $3.48 per share for the third quarter of 2026, beating expectations, with revenue also ahead of what Wall Street looked for.
Morningstar Credit drove the beat, with revenue up 18.3% on heavy corporate and ABS/RMBS issuance that flows quickly to the bottom line.
Adjusted operating margin expanded to 28.3% from 24.4% a year prior, even as the company kept investing in cloud migration and AI initiatives. Revenue growth far outpaced cost growth.
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Morningstar Indexes revenue rose 78.9% on the CRSP acquisition plus organic growth, and Retirement grew as well. PitchBook lagged, growing only 3.9% with a slimmer margin, which matters given its place in the long-term growth thesis.
Cumulative tool calls through the PitchBook Data Premium Connector surpassed 13 million in October, up from 1 million in July, per CEO Kunal Kapoor. AI demand for Morningstar's data is accelerating past the pilot stage.
Morningstar repurchased $500 million of its own stock year to date, shrinking the share count since the end of 2025. Management gave no formal guidance but flagged continued momentum and a broader PitchBook AI rollout by early 2027.
Mentioned: MORN