MORN earnings analysis
What we found in MORN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Morningstar, Inc. reported strong Q1 2026 results with revenue of $644.8 million, a 10.8% increase year-over-year, and diluted EPS of $3.18, exceeding estimates. Segment performance varied, with Morningstar Credit seeing significant growth while Morningstar Wealth faced a decline; overall operating income rose sharply, indicating operational strength despite challenges in certain areas.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased by 10.8% to $644.8 million from $581.9 million YoY.
- Surprise in EPS
- Diluted EPS came in at $3.18, exceeding the estimate of $2.66, reflecting a 19.55% surprise.
- Improvement in Operating Margin
- Operating margin improved to 24.2%, a rise of 4.6 percentage points compared to 19.6% last year.
- Substantial Growth in Morningstar Credit
- Morningstar Credit revenue surged by 38.4% to $101 million, driven by strong performance in structured finance revenue.
- Operating Income Jumped
- Operating income rose by 36.6% to $155.9 million, indicating improved profitability.
- Positive Cash Flow Dynamics
- Operating cash flow was stable at $91.5 million, marking a slight increase compared to $91.0 million a year prior.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Acquisition Risks Remain
- Risks related to achieving benefits from the CRSP acquisition persist, affecting operational performance.
- Cybersecurity Vulnerabilities
- Management highlighted risk exposure to cybersecurity incidents that could impact operational integrity.
- Interest Rate Impact on Debt
- A 100 basis-point rise in interest rates could increase interest expense by $13.7 million annually.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.18
- Operating margin
- 24.2%
- Segment
- Morningstar Direct Platform
- Segment
- PitchBook
- Segment
- Morningstar Credit
- Segment
- Morningstar Wealth
- Segment
- Morningstar Retirement
What they said about what is next.
Management did not provide explicit numerical guidance; general outlook indicates expectations of continued demand growth.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- Morningstar presents a diversified, subscription-anchored business with scale in data, research and asset management: total AUMA of approximately $378.0 billion and five reportable segments (Morningstar Direct Platform,…
- 10-Q · October 30, 2025
- Morningstar reported Q3 revenue of $617.4 million, up from $569.4 million in Q3 2024, with operating income of $127.8 million and stable ~20.7% operating margin. Cash generation remained strong (nine‑month operating…
- 10-Q · July 28, 2023
- Morningstar reported Q2 revenue of $504.7 million, up from $470.4 million a year earlier, driven by license-based revenue growth. Operating income declined to $41.7 million from $53.9 million a year ago and operating…
- 10-Q · April 28, 2023
- Morningstar reported Q1 revenue of $479.7M, up $22.7M (≈5.0%) versus Q1 2022, driven by license-based growth. Profitability weakened sharply: operating income fell to $24.5M (from $56.4M) and the company posted a net…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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