Morningstar: A Data Moat That's Starting To Shrink
Morningstar, Inc. reported a 10.8% increase in revenue for Q1 2026, with adjusted EPS exceeding expectations by nearly 20%. However, the company is experiencing a slowdown in organic revenue growth and a decline in free cash flow. Additionally, challenges in the private market and aggressive buybacks have raised concerns about the company's future valuation.
- ▪Morningstar's revenue increased by 10.8% in Q1 2026.
- ▪Adjusted EPS beat consensus estimates by nearly 20%.
- ▪Organic revenue growth is decelerating, and free cash flow declined by 8.8%.
- ▪Morningstar Direct licenses contracted by 1.8%.
- ▪The company's valuation at 16x EV/EBITDA does not reflect ongoing structural headwinds.
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