Investment research firm Morningstar (NASDAQ:MORN) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 8.4% year on year to $617.4 million. Its GAAP profit of $2.17 per share was 0.8% below analysts’ consensus estimates.
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Morningstar (MORN) Q3 CY2025 Highlights:
- Revenue: $617.4 million vs analyst estimates of $603.1 million (8.4% year-on-year growth, 2.4% beat)
- Pre-tax Profit: $123.1 million (19.9% margin, 17.5% year-on-year decline)
- EPS (GAAP): $2.17 vs analyst expectations of $2.19 (0.8% miss)
- Market Capitalization: $9.2 billion
“Morningstar Credit delivered a standout quarter driven by strong performance across asset classes and regions, while Morningstar Direct Platform and PitchBook also contributed meaningfully to consolidated growth," said Kunal Kapoor, Morningstar's chief executive officer.
Company Overview
Founded in 1984 by Joe Mansueto with just $80,000 in personal savings, Morningstar (NASDAQ:MORN) provides independent investment data, research, and analysis tools that help investors, advisors, and institutions make informed financial decisions.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Morningstar grew its revenue at a solid 12.3% compounded annual growth rate. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Morningstar’s annualized revenue growth of 10.1% over the last two years is below its five-year trend, but we still think the results were respectable. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Morningstar reported year-on-year revenue growth of 8.4%, and its $617.4 million of revenue exceeded Wall Street’s estimates by 2.4%.
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Key Takeaways from Morningstar’s Q3 Results
It was encouraging to see Morningstar beat analysts’ revenue expectations this quarter. On the other hand, EPS missed slightly. The stock traded up 1.1% to $212 immediately following the results.
Is Morningstar an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.