Morningstar Reports 9.6% Revenue Growth to $663.2 Million in Q2 2026

Morningstar, Inc. reported a significant increase in its financial performance for the second quarter and first half of 2026, as detailed in its latest 10-Q filing. For the three months ended June 30, 2026, the company generated revenue of $663.2 million, a 9.6% increase from $605.1 million in the same period of 2025. For the six months, revenue rose to $1.308 billion, up 10.2% from $1.187 billion year-over-year. Operating income also saw substantial growth, reaching $160.6 million for the second quarter, a 28.4% increase from $125.1 million, and $316.5 million for the first half, up 32.3% from $239.2 million. The net income for the second quarter was $107.8 million, compared to $89.0 million in the prior year, while diluted earnings per share increased to $2.83 from $2.09.

The company experienced notable changes in its operational metrics, particularly in revenue streams. License-based revenue increased by 6.2% in the second quarter, driven by demand for Morningstar Direct Platform and PitchBook products. Asset-based revenue surged by 17.5%, primarily due to increased sales in Morningstar Retirement and Wealth products. Transaction-based revenue also rose by 18.0%, largely attributed to Morningstar Credit. The overall organic revenue growth was 6.8% for the second quarter and 7.2% for the first half of 2026, indicating strong underlying performance across its business segments.

Strategically, Morningstar completed the acquisition of the Center for Research in Security Prices (CRSP) for $363 million in cash on February 2, 2026. This acquisition is expected to enhance Morningstar's market position among index providers and is reflected in the company's financials, contributing to an increase in goodwill and intangible assets. The company also continued its share repurchase program, buying back 567,844 shares for $100 million in the second quarter, bringing the total repurchased under the program to $700 million as of June 30, 2026.

Operationally, Morningstar reported a total employee headcount of 5,000 as of June 30, 2026, reflecting its ongoing investment in talent to support growth initiatives. The company also noted a 57.3% increase in cash provided by operating activities in the second quarter, amounting to $155.7 million, and a free cash flow of $122.5 million, up 96.3% from the previous year. Morningstar's international revenue accounted for 28% of total revenue, with notable growth in regions such as Canada and Australia.

Looking ahead, Morningstar expressed optimism about its growth trajectory, driven by strong demand for its products and services, particularly in the areas of credit ratings and investment management. The company anticipates continued revenue growth, supported by its strategic acquisitions and a focus on enhancing its product offerings. However, it also acknowledged potential risks, including regulatory changes and market conditions that could impact its operations and financial performance.