Overview
Investment insights provider's Q4 revenue grew 8.5% yr/yr
Adjusted EPS for Q4 rose 26.6% yr/yr
Company repurchased 1.78 mln shares for $385.3 mln in Q4
Outlook
Morningstar did not provide specific financial guidance for 2026
Result Drivers
SEGMENT GROWTH - Morningstar Credit, Morningstar Direct Platform, and PitchBook were key contributors to Q4 revenue growth
AI INTEGRATION - Co is using AI and new integrations with large language models to scale research and data moat
COMPENSATION COSTS - Higher Q4 operating expenses were driven by increased compensation costs, including severance expenses
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $641.10 mln | $634.43 mln (2 Analysts) |
Q4 Adjusted EPS | Beat | $2.71 | $2.30 (2 Analysts) |
Q4 EPS | $2.83 | ||
Q4 Net Income | $115.10 mln | ||
Q4 Operating Income | $159.60 mln | ||
Q4 Operating Margin | 24.90% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy"
Wall Street's median 12-month price target for Morningstar Inc is $265.00, about 70.6% above its February 11 closing price of $155.35
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nBw4rf17ba
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)