Morningstar (MORN) Q1 FY2026 earnings: revenue $645 million, up 10.8% on the year

Morningstar, Inc. (MORN) reported revenue of $645 million for Q1 FY2026, the quarter ended 31 March 2026, up 10.8% on the same quarter a year earlier. Net income was $107 million, up 36.4% on the year, and diluted earnings per share $2.73. The figures are the company's own, from the 10-Q it filed with the SEC on 29 April 2026.

Revenue$645 millionup 10.8%

Net income$107 millionup 36.4%

Diluted EPS$2.73

QuarterQ1 FY2026ended 31 March 2026

The quarter, against the one before and a year earlier

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Revenue	645	641	582	+10.8%
Cost of revenue	239	249	231	+3.2%
Gross profit	406	392	350	+15.8%
Gross margin	62.9%	61.1%	60.2%
Operating income	156	160	114	+36.6%
Operating margin	24.2%	24.9%	19.6%
Pre-tax income	142	151	108	+30.7%
Income tax	34.6	36.4	27.4	+26.3%
Effective tax rate	24.4%	24.1%	25.3%
Net income	107	115	78.5	+36.4%
Net margin	16.6%	18.0%	13.5%
Diluted EPS	$2.73	$2.83	$1.82	+50.0%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Operating cash flow	91.5	204	91.0	+0.5%
Capital expenditure	37.9	42.7	32.2	+17.7%
Free cash flow	53.6	161	58.8	-8.8%
Free cash flow margin	8.3%	25.2%	10.1%
Cash from investing	-384	-11.7	-70.7	n/a
Cash from financing	317	-194	-24.1	n/a
Depreciation and amortisation	51.7	47.1	47.3	+9.3%
Share-based compensation	10.8	10.3	9.1	+18.7%
Buybacks	300	395	110	+173.7%
Dividends paid	19.9	18.9	19.5	+2.1%
Dividend per share	$0.50	n/a	$0.46	+8.7%
Diluted shares, weighted	39m	41m	43m	-8.8%
Shares outstanding at period end	38m	40m	43m	-10.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2026	Q4 FY2025	Q1 FY2025	Change on the year
Shareholders' equity	1,019	1,222	1,609	-36.7%
Short-term borrowings	18.2	0.0	n/a	n/a
Debt	1,695	1,073	804	+110.8%
Operating lease liabilities	151	147	162	-6.6%
Other liabilities	1,104	1,149	1,012	+9.1%
Total liabilities and equity	3,986	3,590	3,586	+11.2%
Fixed assets	235	232	222	+6.0%
Goodwill	1,747	1,611	1,601	+9.1%
Intangible assets	591	379	420	+40.7%
Investments	39.4	54.2	47.7	-17.4%
Cash and equivalents	493	474	512	-3.7%
Receivables	403	390	342	+17.7%
Other assets	478	449	442	+8.2%
Total assets	3,986	3,590	3,586	+11.2%

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	516	539	543	572	569	591	582	605	617	641	645	663
Cost of revenue	203	205	218	223	223	232	231	231	242	249	239	239
Gross profit	313	333	325	349	347	359	350	374	376	392	406	424
Gross margin	61%	62%	60%	61%	61%	61%	60%	62%	61%	61%	63%	64%
Operating income	70.0	94.4	92.6	108	116	168	114	125	128	160	156	161
Operating margin	14%	18%	17%	19%	20%	28%	20%	21%	21%	25%	24%	24%
Pre-tax income	57.4	90.3	87.0	89.5	152	163	108	116	123	151	142	147
Tax rate	29%	16%	24%	21%	19%	21%	25%	23%	26%	24%	24%	26%
Net income	39.1	73.5	64.2	69.1	120	117	78.5	89.0	91.6	115	107	108
Net margin	8%	14%	12%	12%	21%	20%	13%	15%	15%	18%	17%	16%
Diluted EPS	$0.91	$1.71	$1.49	$1.60	$2.77	$2.71	$1.82	$2.09	$2.17	$2.83	$2.73	$2.83
Operating cash flow	131	138	93.6	153	192	153	91.0	99.0	196	204	91.5	156
Capital expenditure	29.3	30.0	34.1	31.9	36.1	40.6	32.2	36.6	35.6	42.7	37.9	33.2
Free cash flow	101	108	59.5	121	156	113	58.8	62.4	160	161	53.6	122
Buybacks	0.0	0.0	0.0	0.0	0.0	11.6	110	112	170	395	300	100
Dividends paid	16.0	16.0	17.3	17.3	17.4	17.3	19.5	19.3	19.2	18.9	19.9	19.0
Shares outstanding	43m	43m	43m	43m	43m	43m	43m	42m	42m	40m	38m	38m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 March 2026, filed 29 April 2026, accession 0001289419-26-000025: the filing on EDGAR. All of Morningstar, Inc.'s filings: EDGAR company page.

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