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Morningstar reported third-quarter revenue of $672.1 million, up from $617.4 million a year earlier and above the consensus. Its non-GAAP earnings per share of $3.48 also exceeded the consensus, while diluted earnings per share rose to $3.06 from $2.17.
According to the filing, demand for Morningstar Direct Platform and PitchBook products lifted license-based revenue, while Morningstar Retirement and Morningstar Indexes drove growth in asset-based revenue. Morningstar Credit drove the increase in transaction-based revenue. The filing said PitchBook platform growth slowed as corporate and venture capital clients continued to churn at higher rates, while Morningstar Wealth revenue fell amid the sunsetting of Morningstar Office.
Morningstar reported an operating margin of 24.9%, up from 20.7%, and a gross margin of 64.2%, up from 60.9%. Free cash flow fell to $155.4 million from $160.1 million, which the filing attributed mainly to less favorable working capital movements more than offsetting higher cash earnings.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $672.1 million | $617.4 million | 8.86% |
| Diluted EPS | $3.06 | $2.17 | 40.8% |
| Gross margin | 64.2% | 60.9% | 3.3 percentage points |
| Operating margin | 24.9% | 20.7% | 4.2 percentage points |
| Free cash flow | $155.4 million | $160.1 million | −2.94% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.72 | $0.70 | Beat by 2.86% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Morningstar’s latest earnings call is not available for this report.
Guidance
Morningstar’s management guidance is not available for this report. In its filing, Morningstar said it intends to use cash, cash equivalents and investments for general corporate purposes, including working capital and funding future growth.