Key Highlights

  • Second-quarter revenue was $663.2 million, up 9.6%.
  • Operating margin was 24.2% versus 20.7% a year earlier.
  • Free cash flow was $122.5 million, up 96.3%.
  • Year-to-date repurchases were 2,291,256 shares for $400.0 million.

Morningstar, Inc. (NASDAQ:MORN), a constituent of the S&P MidCap 400, reported second-quarter 2026 results on July 28 showing revenue growth of 9.6%, a widening operating margin and heavy share repurchases. The investment research and data provider has been investing in PitchBook, Morningstar Direct and credit ratings, and the latest quarter offered a view of how those segments are balancing growth with profitability.

Latest Company Context

Morningstar reported Q2 2026 revenue of $663.2 million, up 9.6% (6.8% organic). Operating income was $160.6 million, up 28.4%, with an operating margin of 24.2% versus 20.7%. Adjusted operating income was $175.9 million, up 22.7%, with an adjusted margin of 26.5%. Diluted EPS was $2.83, up 35.4%, and adjusted diluted EPS was $3.10, up 29.2%. Operating cash flow was $155.7 million and free cash flow was $122.5 million, up 96.3%.

The company repurchased 567,844 shares for $100.0 million in the quarter and paid $19.0 million in dividends; year to date it repurchased 2,291,256 shares for $400.0 million. The release did not provide numerical forward guidance. CEO Kunal Kapoor pointed to strategic priorities including agentic workflows and the convergence of public and private markets.

Key Business and Index Drivers

Segment performance was mixed. Morningstar Direct Platform revenue rose 6.2% to $222.1 million (4.8% organic), with an adjusted margin of 45.2%, down 0.8 points. PitchBook revenue rose 4.9% to $174.7 million, with an adjusted margin of 30.3%, down 1.4 points. Morningstar Credit grew 23.4% to $104.9 million, supported by what the company described as robust issuance, and its adjusted margin rose to 36.7%.

The overall margin increase therefore appears to have been helped by credit and corporate factors, while the two largest subscription segments saw slightly lower adjusted margins. Credit issuance can be cyclical, so investors may weigh how much of the improvement is repeatable. Heavy buybacks, $400 million in six months, may support per-share results. As an S&P MidCap 400 member, the stock is part of a closely followed benchmark, but membership does not determine performance. Analyst opinions are expectations and may change.

What Investors Should Watch

The third-quarter report may show whether PitchBook growth accelerates and whether Direct Platform margins stabilise. Investors may also watch credit issuance trends, new product launches involving AI-enabled workflows, the pace of buybacks and any update on the shareholder letter priorities.

Public-to-private market convergence, fund flows and asset-management budgets could influence demand for data and research tools. Currency effects and acquisitions may also affect reported versus organic growth.

A Subscription Business Widening Margins While Buying Back Stock

Morningstar's quarter combined revenue growth, a wider operating margin and heavy repurchases. The release gave no numerical forward guidance, so PitchBook growth and Direct Platform margins are the points to follow.