Morningstar Q2 Earnings Beat: Revenue +9.6%, Adj. EPS $3.10, $100M Buyback
MORN sits 40% above its 52-week low of $141.49 on elevated volume (2.1× avg).
Summary
Morningstar reported Q2 2026 revenue of $663.2M (+9.6%) and adjusted EPS of $3.10, beating consensus. Strong cash flow funded $100M in buybacks, and the CRSP integration reached a major rebranding milestone.
Key Events · Earnings and Guidance · MORN
-
Q2 Revenue and EPS Beat
Revenue of $663.2M (+9.6% reported, +6.8% organic) exceeded the $649.7M consensus. Adjusted diluted EPS of $3.10 rose 29.2% year-over-year, beating estimates.
-
Operating Leverage and Cash Flow Surge
Operating income increased 28.4% to $160.6M, with adjusted operating margin expanding to 26.5%. Free cash flow nearly doubled to $122.5M, driven by higher earnings and lower capex.
-
Aggressive Share Buybacks
The company repurchased $100M in shares during Q2, bringing YTD buybacks to $400M and reducing shares outstanding by 5.6% since December 2025.
-
CRSP Integration Milestone
Acquired CRSP indexes were rebranded under the Morningstar name, and Vanguard added 'Morningstar' to its funds tracking those indexes (e.g., VTI now Vanguard Morningstar Total Stock Market Index ETF).
Analysis · MORN · Finance
A strong second quarter underscores Morningstar's profitable growth trajectory and capital return story. Revenue reached $663.2M, surpassing the $649.7M consensus, while adjusted EPS of $3.10 handily topped estimates. Operating income jumped 28.4% and free cash flow nearly doubled to $122.5M, funding $100M in buybacks that have shrunk the float by 5.6% this year. The CRSP integration hit a key milestone with index rebranding and Vanguard fund name changes, and AI adoption metrics show encouraging early traction.
At the time of this filing, MORN was trading at $198.66 on NASDAQ in the Finance sector, with a market capitalization of approximately $7.6B. The 52-week trading range was $141.49 to $289.63. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.