MORN

Morningstar lifted its price targets for both companies, citing stronger AI-driven growth and margin opportunities. Snowflake’s results highlighted accelerating enterprise AI demand, though Morningstar warned competition could intensify as agentic AI enthusiasm cools. HPE’s results showed AI spending broadening into servers, networking and hybrid cloud. Snowflake and Hewlett Packard Enterprise delivered strong quarterly reports, but investors reacted very differently, with Snowflake shares surging 24% premarket on Thursday while HPE stock fell about 5%. Morningstar analysts nonetheless raised their price targets for both companies, citing stronger AI-driven growth prospects. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Snowflake’s second-quarter revenue rose 35% to $1.55 billion, beating expectations, and the company raised its full-year revenue forecast. Morningstar raised its target on SNOW to $284 from $255, citing stronger AI tailwinds that should benefit both revenue growth and margins. However, the firm cautioned that the company’s recent outperformance is driven primarily by the broader enterprise AI market rather than a unique competitive advantage. “Shares shot up 23% after earnings and look overvalued to us,” Morningstar said, warning that competition could intensify as enthusiasm around agentic AI eventually fades. HPE, meanwhile, reported fiscal third-quarter revenue of $9.2 billion, up 34%, and also raised its annual forecast, following a similarly strong report by rival Dell Technologies earlier this week. Morningstar analysts said the results show AI demand is spreading beyond specialized AI infrastructure into HPE’s broader portfolio, including hybrid cloud, general-purpose servers, and networking. The firm also pointed to HPE’s recent Oracle deal combining Juniper networking products with other hardware for a multigigawatt buildout. Despite the stock’s selloff, Morningstar raised its HPE target to $66 from $64. “We thought earnings were solid and are a bit surprised by the after-hours selloff and view shares as undervalued,” the analysts said. On Stocktwits, the retail sentiment for SNOW increased to nearly the highest-possible in the ‘extremely bullish’ zone (97/100), and the sentiment for HPE also climbed sharply higher to ‘extremely bullish’ (92/100). “$HPE Now trading at a single digit P/E of 9 and change after that beat and raise. One of the best values right now in the AI hardware space with phenomenal management and consistent execution. I sure hopes it opens around this price tomorrow as I'll be opening some long dated bull call spreads,” a trader said. There was skepticism around SNOW. A trader wrote: “$SNOW Almost 25% in AH. This is just, i mean. wow. I don't really buy short positions. But im seriously considering it.” For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: Micron, Samsung, SK Hynix Suffer Drop In DRAM Market Share As China’s CXMT Pulls Ahead Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: TSLA Stock Slips Overnight As Safety Regulator Scrutinizes Cybercab — Retail Fumes Over Event Blackout TSLA Stock Slips Overnight As Safety Regulator Scrutinizes Cybercab — Retail Fumes Over Event Blackout LULU Stock Sinks 18% Overnight: Michael Burry Says Lululemon Is A ‘Trickster’ As He Vows To Buy More Under $100

Morningstar stock has rallied strongly over the past month, and several valuation checks now point to the shares trading at a premium to an intrinsic value estimate and to standard market multiples. That leaves investors weighing a recent price recovery against indications that Morningstar does not screen as a clear bargain on most metrics. The stock is up about 24.6% over the past month. This sharpens the question of how much upside is left if current expectations are already reflected in the price. New integrations of Morningstar and PitchBook data into Google Cloud's Gemini Enterprise for Financial Services can support long term revenue opportunities, while any slowdown in demand for paid research and data subscriptions remains a key risk for cash flow durability. With a value score of 2 out of 6 and both the Excess Returns intrinsic value estimate and market multiples indicating the stock screens as overvalued, the broader checks suggest Morningstar currently leans expensive rather than attractively priced. The issue now is whether Morningstar's recent business developments and earnings power are strong enough to justify paying what looks like a premium valuation today. Balance the recent Morningstar rebound by scanning a curated set of resilient stocks in the 74 resilient stocks with low risk scores that may better match your risk and valuation comfort zone. The Excess Returns model looks at how much profit Morningstar is expected to generate above its estimated cost of equity. For Morningstar, the model uses a Book Value of $27.29 per share and a Stable EPS of $8.76 per share, based on the median return on equity from the past 5 years, against a Cost of Equity of $2.73 per share. That implies an Excess Return of $6.03 per share with an Average Return on Equity of 26.74%, supported by a Stable Book Value assumption of $32.77 per share from analyst estimates. Those inputs translate to an estimated intrinsic value of $162.89 per share, which suggests Morningstar is about 32.0% overvalued relative to the current share price. The recent integration of Morningstar and PitchBook data into Google Cloud's Gemini Enterprise for Financial Services helps explain why investors may be comfortable paying a premium to these fundamentals. On this model, Morningstar stock currently screens as overvalued compared with its estimated intrinsic value. Our Excess Returns analysis suggests Morningstar may be overvalued by 32.0%. Discover 49 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Morningstar. P/E is usually the cleanest way to compare Morningstar with other profitable information and analytics providers. It links what you pay per share directly to the earnings that support that price. Morningstar currently trades on a P/E of about 19.1x. That sits below the wider Capital Markets industry average of 39.0x and also below the peer group average of 23.0x, so on simple benchmarks the stock does not look stretched. However, the fair P/E ratio estimated for Morningstar, based on its profile and risk, is 15.0x. The gap between this fair level and the current 19.1x suggests investors are paying more than this framework implies is warranted. On the P/E lens, Morningstar stock screens as overvalued relative to the level suggested by its tailored fair multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Morningstar pick up the thread from this valuation puzzle and spell out which growth, margin and earnings paths would need to play out for the stock to be worth materially more or less than today’s price. All of this is housed on the company’s Community page. Each narrative ties its numbers to a specific view on how Morningstar's growth, profitability and risks could evolve, which you can revisit as fresh information comes through. Here is a chance to be one of the first voices in the Simply Wall St community to set out a number driven narrative on Morningstar's valuation and a view on whether the Gemini Enterprise integrations really change the earnings story. Share your thesis, anchor it in the figures that matter to you, and then track how it holds up as new results and product updates come through. Do you think there's more to the story for Morningstar? Head over to our Community to see what others are saying! For Morningstar, both the Excess Returns intrinsic value estimate and the tailored P/E framework point to the stock as overvalued rather than clearly cheap. That aligns with a low value score and suggests the burden of proof now sits with future execution, rather than the current price offering a clear margin of safety. The crux for investors is whether Morningstar can sustain the kind of earnings power and monetisation of products such as the Gemini Enterprise integrations that would make today’s valuation look reasonable over time. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MORN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Morningstar (MORN) drew fresh investor attention after reporting second quarter 2026 sales of US$663.2 million and net income of US$107.8 million, alongside the completion of a US$699.97 million share repurchase program. See our latest analysis for Morningstar. Morningstar’s latest earnings and buyback news come after a mixed price pattern, with the stock up 18.28% on a 1 month share price return and 17.54% on a 3 month share price return, yet its 1 year total shareholder return is down 23.57% and 5 year total shareholder return is down 23.52%. This points to recent momentum building after a weaker long term experience. If this kind of move has you thinking about what else is out there, it could be a good time to widen your search and check out 18 top founder-led companies Morningstar’s recent rebound and completed buyback program put a spotlight on timing. Does it make more sense to accept today’s price after the jump, or wait and hope the valuation offers a wider margin of safety? The recent move in Morningstar’s share price now sits against a P/E of 17.4x, which screens cheaper than several benchmarks but not cheap against its own fair ratio. The P/E multiple compares the current share price to earnings per share. For a company like Morningstar, which earns most of its revenue from research, data and software style services, investors often focus on P/E because cash generation and earnings quality tend to matter more than asset values. Morningstar’s current P/E of 17.4x is below the US market level of 19.2x and below the US Capital Markets industry average of 37.9x. That suggests the market is not paying as high a premium for Morningstar’s earnings as it does for many peers. At the same time, the estimated fair P/E for the stock is 14.8x, which implies the current multiple sits above the level that regression analysis suggests the market could move towards if sentiment cools. Put simply, the stock looks inexpensive compared to other capital markets companies but richer than its own fair ratio signal. This may matter to investors who focus closely on valuation discipline and margin of safety. Explore the SWS fair ratio for Morningstar Result: Price-to-earnings of 17.4x (ABOUT RIGHT) However, Morningstar’s weaker 1 year and 5 year total returns, along with any cooling in sentiment around its 17.4x P/E, could quickly cap this rebound. Find out about the key risks to this Morningstar narrative. The earlier P/E work suggests Morningstar shares look cheaper than many peers, yet richer than the fair ratio of 14.8x. The SWS DCF model points the other way. At $195.38, Morningstar trades above an estimated future cash flow value of $164.48, which reads as overvalued on that method. Two methods, two different signals. For you as an investor, the question is which risk feels bigger right now: paying up versus the fair ratio, or paying up versus the DCF cash flow view. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Morningstar for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Morningstar’s mix of recent share price strength, prior weaker returns and differing valuation signals pulls sentiment in both directions. This is exactly why you should review the key risks and potential rewards yourself before the next move. To help with that, start with an overview of the 4 key rewards and 1 important warning sign. If Morningstar has you thinking more broadly about where to put fresh capital to work, now is the moment to scan for other opportunities that fit your style. Target potential mispricing by reviewing screener containing 20 high quality undiscovered gems that combine strong fundamentals with lower market attention. Strengthen portfolio resilience by focusing on companies in the 85 resilient stocks with low risk scores that score well on financial and risk factors. Build a core watchlist by zeroing in on financially sound companies using the solid balance sheet and fundamentals stocks screener (50 results). This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MORN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Morningstar, Inc. recently reported past second-quarter 2026 results showing sales of US$663.2 million and net income of US$107.8 million, with higher basic and diluted earnings per share from continuing operations than a year earlier. The company also completed rebranding the CRSP Market Indexes to Morningstar Market Indexes, extending its own name across benchmarks that underpin more than US$3 trillion in investor assets without altering existing index methodologies. Next, we will examine how Morningstar’s earnings growth and index rebrand shape its investment narrative for investors assessing the business today. The future of work is here. Discover the 35 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Morningstar today, you have to believe in its role as a core infrastructure provider for investors, where data, ratings, research and now a bigger index footprint all reinforce each other. The latest quarter’s higher sales and earnings, paired with a meaningful buyback and steady dividend, support the idea that cash generation can fund both growth initiatives and shareholder returns, even after a tough share price run over the past year. The rebranding of the CRSP Market Indexes to Morningstar Market Indexes matters more as a long-term brand and pricing catalyst than a near-term financial swing, but it does modestly strengthen the case for the indexes business as a growth pillar. Against that, high leverage, insider selling and slower expected revenue and profit growth remain the key risks investors need to watch. However, one risk around Morningstar’s debt load and slowing growth is easy to miss. Morningstar's shares are on the way up, but they could be overextended by 20%. Uncover the fair value now. Seven fair value views from the Simply Wall St Community span roughly US$160,000 to over US$329,000 per share, underlining how far opinions can stretch. Set against Morningstar’s heavy use of debt and more modest forecast growth, that spread reflects how differently investors weigh balance sheet risk against the potential of its expanding index franchise. Explore 7 other fair value estimates on Morningstar - why the stock might be worth as much as 71% more than the current price! Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Morningstar research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Morningstar research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Morningstar's overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MORN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

CHICAGO, July 29, 2026--(BUSINESS WIRE)--Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, reported growth in revenue, operating and adjusted operating income, and margins in the second quarter. "We are continuing to deliver profitable growth with meaningful increases in operating and free cash flows," said Kunal Kapoor, Morningstar's CEO. "Morningstar is accelerating an ambitious strategy, unlocking speed to insights by building agentic workflows and tools atop our data, research, and intellectual property. We’re enabling broader access to this content through new and expanded collaborations with leading model and enterprise technology providers. "We are also doubling down on helping investors navigate the convergence of public and private markets. Momentum is building with continued strength in Morningstar Credit partly driven by private ratings activity, Morningstar Wealth’s recent announcement of a collaboration to create public/private models with leading asset managers, and expanded research coverage including the latest State of Semiliquid Funds report." The Company's quarterly shareholder letter available at shareholders.morningstar.com provides more context on its second-quarter results and business performance. Second-Quarter 2026 Financial Highlights Reported revenue increased 9.6% to $663.2 million compared to the prior-year period; organic revenue increased 6.8%. Excluding the impact from the sunsetting of certain products, organic revenue would have increased 8.2%. Reported operating income increased 28.4% to $160.6 million; adjusted operating income increased 22.7%. Diluted net income per share increased 35.4% to $2.83; adjusted diluted net income per share increased 29.2% to $3.10. Cash provided by operating activities increased 57.3% to $155.7 million; free cash flow increased 96.3% to $122.5 million. Share repurchases totaled 567,844 shares for $100.0 million. Year-To-Date Financial Highlights Reported revenue increased 10.2% to $1.3 billion compared to the prior-year period; organic revenue increased 7.2%. Excluding the impact from the sunsetting of certain products, organic revenue would have increased 8.5%. Reported operating income increased 32.3% to $316.5 million; adjusted operating income increased 27.2%. Diluted net income per share increased 41.9% to $5.55; adjusted diluted net income per share increased 35.4% to $6.27. Cash provided by operating activities increased 30.1% to $247.2 million; free cash flow increased 45.3% to $176.1 million. Share repurchases totaled 2,291,256 shares for $400.0 million. Second-Quarter 2026 Results Revenue increased 9.6% to $663.2 million on a reported basis and 6.8% on an organic basis versus the prior-year period. Morningstar Credit, Morningstar Direct Platform, and PitchBook were the largest contributors to organic revenue growth. Excluding the impact of the sunsetting of Morningstar Office in Morningstar Wealth and the second-party opinions product in Morningstar Sustainalytics, organic revenue would have increased 8.2%. Operating expense increased 5.9% to $509.4 million versus the prior-year period. The largest driver was a $7.4 million increase in compensation costs, primarily due to higher stock-based compensation and bonus expense, which included the impact of strong performance compared to targets. A $6.7 million increase in certain technology infrastructure costs, including higher cloud spending primarily related to the migration from on-premise data centers and computer and software costs associated with AI initiatives also contributed, as did a $5.6 million increase in intangible amortization expenses primarily due to the February 2026 acquisition of the Center for Research in Security Prices (CRSP). Second-quarter operating income increased 28.4% to $160.6 million. Adjusted operating income was $175.9 million, an increase of 22.7%. Second-quarter operating margin was 24.2%, compared with 20.7% in the prior-year period. Adjusted operating margin was 26.5% in the second quarter of 2026, versus 23.7% in the prior-year period. The acquisition of CRSP was accretive to adjusted operating margin in the quarter. Net income in the second quarter of 2026 was $107.8 million, or $2.83 per diluted share, compared with net income of $89.0 million, or $2.09 per diluted share, in the prior-year period, an increase of 35.4% on a per diluted share basis. Adjusted diluted net income per share increased 29.2% to $3.10 in the second quarter of 2026, compared with $2.40 in the prior-year period. The Company's effective tax rate increased to 26.2% in the second quarter of 2026 versus 22.8% in the prior-year period, primarily due to a negative tax impact resulting from the vesting of employee stock-based compensation in 2026 compared with a tax benefit resulting from vesting activity in 2025. Deferred taxes recorded in the second quarter of 2026 with respect to unremitted foreign earnings also contributed. Segment Highlights Morningstar Direct Platform Morningstar Direct Platform contributed $222.1 million to consolidated revenue and $12.9 million to consolidated revenue growth, with revenue increasing 6.2% compared to the prior-year period, or 4.8% on an organic basis. Higher revenue was primarily driven by Morningstar Data and Morningstar Direct. Morningstar Data organic revenue growth was driven in part by expansion with existing clients supported by new use cases, with continued strength in the managed investment data and Morningstar Essentials products, partially offset by softness in exchange market data. Morningstar Direct growth reflected increased revenue per license and expansion with existing clients in reporting solutions. Direct licenses were relatively flat compared with the prior-year period. Morningstar Direct Platform adjusted operating income increased 4.2% to $100.3 million, and adjusted operating margin decreased 0.8 percentage points to 45.2%, due in part to higher compensation costs largely driven by a shift of additional research and sales resources to support Direct Platform growth priorities, partially offset by targeted reorganizations in the fourth quarter of 2025. Increased technology infrastructure costs primarily driven by cloud migration also contributed. PitchBook PitchBook contributed $174.7 million to consolidated revenue and $8.2 million to consolidated revenue growth, with revenue increasing 4.9% on a reported and organic basis compared to the prior-year period. The increase in revenue was primarily driven by the PitchBook platform and strength in the direct data business, which continued to expand from a smaller revenue base. Growth reflected contributions from most core investor and advisor client segments, partially offset by softness in venture capital and elevated churn in the corporate client segment. Licensed user counts were relatively flat compared to the prior-year period. PitchBook adjusted operating income increased 0.4% to $53.0 million, and adjusted operating margin decreased 1.4 percentage points to 30.3%. The decline in adjusted operating margin was largely driven by an increase in compensation costs, which included the impact of additional headcount to support new growth initiatives. Increased technology infrastructure costs primarily related to AI initiatives also contributed. Morningstar Credit Morningstar Credit contributed $104.9 million to consolidated revenue and $19.9 million to consolidated revenue growth, with revenue increasing 23.4% compared to the prior-year period, or 23.3% on an organic basis, supported by robust issuance. Revenue grew across geographies and most asset classes, with particular strength in US structured finance ratings and Canadian and US corporates. Morningstar Credit adjusted operating income increased 26.2% to $38.5 million, and adjusted operating margin increased 0.8 percentage points to 36.7%. The increase in adjusted operating income and margin reflected revenue growth, partially offset by higher compensation costs. The increase in compensation was driven by higher salaries and benefits due to added headcount to support growth and higher bonus expense reflecting strong performance against targets. Morningstar Wealth Morningstar Wealth contributed $60.3 million to consolidated revenue and negative $4.0 million to consolidated revenue growth, with revenue decreasing 6.2% compared to the prior-year period, or 4.6% on an organic basis. Organic revenue excluded interim service fees received from AssetMark associated with the Company's sale of customer assets from the US Morningstar Wealth Turnkey Asset Management Platform from the prior-year period, and foreign currency impact. Excluding the impact from the sunsetting of Morningstar Office, organic revenue would have increased 5.3%, supported by growth in Investment Management. Reported assets under management and advisement (AUMA) decreased 4.5% to $63.8 billion compared with the prior-year period. Excluding the impact of the loss of an Asset Allocation Services client, which accounted for a negligible share of Investment Management revenue, AUMA would have increased compared to the prior-year period. Combined Morningstar Model Portfolio and International Wealth Platform AUMA increased 16.2% to $55.3 million, supported by market appreciation and positive net flows outside the US. Morningstar Wealth adjusted operating income increased 163.3% to $7.9 million, and adjusted operating margin increased 8.4 percentage points to 13.1%. Morningstar Retirement Morningstar Retirement contributed $37.9 million to consolidated revenue and $5.5 million to consolidated revenue growth. Revenue increased 17.0% on a reported and organic basis. AUMA increased 9.0% to $311.0 billion compared with the prior-year period, primarily due to market gains and supported by positive net flows to traditional and Advisor Managed Accounts. Morningstar Retirement adjusted operating income increased 26.0% to $19.4 million, and adjusted operating margin increased 3.7 percentage points to 51.2%. Corporate and All Other Revenue attributable to Corporate and All Other contributed $63.3 million to consolidated revenue and $15.6 million to consolidated revenue growth, with reported revenue increasing 32.7%, or 1.2% on an organic basis, compared to the prior-year period, driven by Morningstar Indexes. Organic revenue growth excludes revenue associated with the CRSP acquisition and foreign currency impact. Morningstar Indexes revenue increased on a reported and organic basis, with reported growth driven primarily by the CRSP acquisition. Morningstar Sustainalytics revenue declined on a reported and organic basis primarily due to the retirement of the second-party opinions product. The impact of Corporate and All Other on consolidated adjusted operating income was negative $43.2 million compared with negative $54.6 million in the prior-year period. Balance Sheet and Capital Allocation As of June 30, 2026, the Company had cash, cash equivalents, and investments totaling $523.8 million and $1.7 billion of debt, compared with $528.7 million and $1.1 billion, respectively, as of Dec. 31, 2025. Cash provided by operating activities increased 57.3% to $155.7 million. Free cash flow increased 96.3% to $122.5 million in the second quarter of 2026, mainly reflecting higher cash earnings as well as a decrease in capital expenditures compared to the prior-year period. During the quarter, the Company increased its debt by $0.3 million, net, repurchased $100.0 million of its shares, and paid $19.0 million in dividends. Use of Non-GAAP Financial Measures Organic revenue, adjusted operating income (loss), adjusted operating margin, adjusted diluted net income per share, and free cash flow are non-GAAP financial measures. The tables at the end of this press release include a reconciliation of the non-GAAP financial measures used by the Company to comparable GAAP measures and an explanation of why the Company uses them. Investor Communication Morningstar encourages all interested parties — including securities analysts, current shareholders, potential shareholders, and others — to submit questions in writing. Investors and others may send questions about Morningstar’s business to [email protected]. Morningstar will make written responses to selected inquiries available to all investors at the same time in Form 8-Ks furnished to the Securities and Exchange Commission (the SEC), on a monthly basis, with the exception of months when it releases earnings. About Morningstar, Inc. Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $375 billion in AUMA as of June 30, 2026. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X @MorningstarInc. Caution Concerning Forward-Looking Statements This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as "aim," "committed," "consider," "future," "is designed to," "maintain," "may," "might," "objective," "ongoing," "could," "expect," "possible," "potential," "predict," "prospects," "continue," "strategy," "will," "would," "evaluate," or the negative thereof, and similar expressions. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. For us, these risks and uncertainties include, among others, failing to achieve the anticipated benefits of the CRSP acquisition; failing to maintain and protect our brand, independence, and reputation; failing to prevent and/or mitigate cybersecurity events and the failure to protect confidential information, including personal information about individuals; changing economic and market conditions, including prolonged volatility, recessions, or downturns affecting the financial, data and software sectors and global financial markets, fluctuating interest rates, and the impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses; compliance failures, regulatory action, or changes in or expansion of laws applicable to our regulated businesses; failing to innovate or streamline our product and service offerings or meet or anticipate our clients’ changing needs; impact of artificial intelligence technologies and related costs on our business and reputation, as well as legal and reputational risks as they are incorporated into our products and tools; failing to detect errors in our products or methodology or our products performing improperly due to defects, malfunctions or similar problems; failing to recruit, develop, and retain qualified employees; failing to scale our operations and increase productivity in order to implement our business plans and strategies, including failing to manage costs related thereto; liability for any losses that result from errors in our automated advisory tools or errors in the use of the information and data we collect; inadequacy of our operational risk management and business continuity programs to address materially disruptive events; our strategic transactions, acquisitions, divestitures and investments in companies or technologies failing to yield expected business or financial benefits, negatively impacting our operating results and our ability to deliver long-term value to shareholders; triggering events for impairment of goodwill or assets; failing to maintain growth across our businesses due to changes in geopolitics and the regulatory landscape; failing to recognize deferred revenue; liability relating to the information and data we collect, store, use, create, and distribute or the reports that we publish or are produced by our software products; the potential adverse effect of our indebtedness (and rising interest rates) on our cash flow and financial and operational flexibility; liability, regulatory scrutiny, costs and reputational risks relating to environmental, social, and governance considerations; our dependence on third-party service providers in our operations; inadequacy of our insurance coverage; challenges in accounting for tax complexities in the global jurisdictions we operate in could materially affect our tax obligations and tax rates; the potential impact of vendor consolidation and clients' strategic decisions to replace our products and services with in-house products and services; our ability to build and maintain short-term and long-term shareholder value and pay dividends to our shareholders; our ability to repurchase shares of our common stock; our ability to maintain existing business and renewal rates and to gain new business; the impact of recently issued accounting pronouncements on our consolidated financial statements and related disclosures; impact on our stock price due to market conditions, any future sales of our common stock and fluctuations in our operating results; and failing to protect our intellectual property rights or claims of intellectual property infringement against us. A more complete description of these risks and uncertainties, among others, can be found in our filings with the SEC, including our most recent Report on Form 10-K. If any of these risks and uncertainties materialize, our actual future results and other future events may vary significantly from what we expect. We do not undertake to update our forward-looking statements as a result of new information, future events or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions in our future filings with the SEC on Forms 10-K, 10-Q, and 8-K. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Morningstar in any jurisdiction. Articles, documents and links referred to or included in this press release are not incorporated by reference into this press release or any other SEC filing. ©2026 Morningstar, Inc. All Rights Reserved. MORN-E View source version on businesswire.com: https://www.businesswire.com/news/home/20260728222875/en/ Contacts Media Relations Contact:Stephanie Lerdall, +1 312-244-7805, [email protected] Investor Relations Contact:Sarah Bush, +1 312-384-3754, [email protected]

Morningstar kept its $450 fair value estimate, implying about 46% upside from current levels. Tesla's Q2 profitability weakened as adjusted EPS missed estimates, operating income fell 57%, and margin narrowed to 1.4%. Capex rose to $5.79 billion, turning free cash flow negative by $1.09 billion as Tesla ramps AI, Robotaxi, Optimus, and manufacturing investments. Shares of Tesla, Inc. (TSLA) slipped 2% in premarket trading on Tuesday, but Morningstar sees the post-earnings pullback as a buying opportunity despite Tesla’s rising spending and negative free cash flow. TSLA stock fell 1% on Monday, extending its losing streak to four days. The selloff has also pushed Tesla into technically oversold territory, with its 14-day relative strength index (RSI) falling to 27.34 on Monday, marking its lowest level since March 2025 and below the commonly watched 30 threshold. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Morningstar kept its $450 fair value estimate unchanged after Tesla’s second-quarter (Q2) results, implying a 46% upside from current levels. Morningstar Chief U.S. Market Strategist Dave Sekera said that the quarter did not change the firm’s long-term thesis. Sekera said the results were “really no surprise” to the firm, which had already expected higher deliveries to support revenue growth alongside an increase in capex. Tesla’s spending on new facilities, including expansions to vehicle and battery production, came in somewhat higher than Morningstar had anticipated. “As far as where the stock is trading today, it is looking very attractive,” Sekera said. Morningstar rated Tesla four stars, and Sekera said the shares were trading at a 30% discount to the firm’s $450 fair value estimate. He pointed to Tesla’s history of swinging above and below Morningstar’s assessment of intrinsic value. After trading at elevated levels toward the end of 2025, Sekera said the latest decline has taken the shares back to the downside of that cycle. For investors interested in Tesla, “now looks like a good time” to dollar-cost average into the selloff, he said. For those who have wanted to own the stock but stayed on the sidelines, Sekera said: “now’s a good time maybe to start getting involved.” The optimism comes as Tesla ramps spending across Robotaxi, Cybercab, Optimus, AI compute, chips, solar manufacturing and factory capacity. Tesla reported adjusted earnings of $0.33 per share in Q2, below the $0.54 consensus estimate, while revenue of $28.24 billion beat expectations. Operating income fell 57% year over year to $398 million, and operating margin narrowed to 1.4%. Capex climbed to $5.79 billion, pushing free cash flow to negative $1.09 billion, Tesla’s first negative reading in two years. Musk said the company should be “spending on Capex as fast as we can without it being too wasteful.” Tesla expects 2026 capex to exceed $25 billion, while Deepwater’s Gene Munster sees another $25 billion in 2027, above Wall Street’s roughly $21 billion estimate. Post-earnings analyst action on TSLA was mixed but centered on the same issue: whether Tesla can convert heavy spending into tangible progress. Mizuho and Cantor are optimistic on Tesla’s longer-term AI, robotics and autonomy opportunity, while Roth highlighted TeraFab’s importance to Optimus. Meanwhile, Morgan Stanley said the capex cycle is necessary but raises the bar for visible Robotaxi and Optimus milestones. Truist and Canaccord were more cautious, pointing to weaker margins, negative free cash flow and increasingly expensive long-term bets. On Stocktwits, retail sentiment for TSLA slipped to ‘bearish’ from ‘neutral’ levels a day ago amid a 237% jump in 24-hour message volumes. One user said, “$TSLA this seems to be holding 306 will need to retest 312 and 318” Another bearish user said, “$TSLA The fun thing about the 200 on the weekly - currently about 283 - is that SP more often than not will dive below it versus bouncing off it. Often significantly.” So far this year, Tesla's stock has lagged its "Magnificent Seven" peers, making it the group's worst performer, down about 31%. For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: NIO Stock Snaps 7-Day Rout: CEO Joins CXMT Listing Dinner, Chip Bet Delivers Over $100M Paper Gain On Day 1 Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: SPCX, RKLB, ASTS, LUNR In Focus — Trump Administration To Expedite Approvals For Commercial Rocket Launches Why Is LCID Stock Soaring 23% Today? AMZN, GOOGL, MSFT AI Capex Plans — Why Morgan Stanley Says The Spending Will Pay Off

The Space Explorations Technology Corp. (NASDAQ: SPCX) IPO has already exceeded many analyst expectations. Consider the warnings from Morningstar analysts on June 9 -- days before the record-breaking IPO. After an independent analysis, Morningstar concluded that SpaceX's current business should only be valued at $780 billion -- less than one-third of its current market cap. "We think the company has been significantly overvalued and investors will have opportunities ​to buy the stock at more attractive levels after the IPO," its report concluded. With SpaceX stock already up by more than 30% since its IPO day, Morningstar's analysts may already be scratching their heads. But the road ahead will be long. SpaceX will need to continually prove its ability to execute on long-shot opportunities with massive growth potential to keep investors interested in its multitrillion-dollar market cap. When will we get the first official update from SpaceX outlining its post-IPO spending to execute critical growth milestones? The company's first big reveal should occur within the next few months. Wall Street analysts expect the first SpaceX earnings report to occur sometime in late July or early August. While it will be the company's first official earnings disclosure, technically it will be classified as the company's second-quarter results. SpaceX CEO Elon Musk has a long history of making surprising comments on earnings calls. On Tesla (NASDAQ: TSLA) earnings calls, for example, he has predicted "record-breaking" revenues, previously unannounced product launches, and technology rollouts with timelines that seem highly aggressive, if not outright impossible. Expect the same Musk to appear on SpaceX's earnings call. What exactly will Musk be commenting on? Wall Street will likely care most about progress on the company's Starlink internet segment. That segment produces the most cash for the company, with impressive growth rates and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. But I'm not sure if this is the segment the market cares about most long-term. After all, the vast majority of SpaceX's claimed total addressable market has nothing to do with Starlink. The public, I'm predicting, will care most about two things: rockets and AI. I expect Musk to provide bullish updates on the company's Starship megarocket, a key enabler for the rest of the company's space-based growth initiatives. I also expect Musk to provide details surrounding the company's capital expenditures on AI infrastructure. That includes both the continued rollout of its terrestrial data center facilities and progress on the potential launch of orbital data centers. Following the publication of the company's 370-page IPO prospectus, I don't expect any major changes to SpaceX's core narrative. But armed with more than $75 billion in fresh capital, I'm looking forward to Musk's commentary regarding how that money is being spent, as well as key catalysts to expect in the coming months and years. Before you buy stock in Space Exploration Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $415,040!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,256,076!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 18, 2026. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Mark Your Calendar: SpaceX Stock Could Look Very Different After Earnings was originally published by The Motley Fool

CHICAGO, June 18, 2026--(BUSINESS WIRE)--The board of directors of Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today declared a quarterly dividend of 50 cents per share, consistent with the dividend paid in April. The dividend is payable July 31, 2026, to shareholders of record as of July 10, 2026. Please contact [email protected] with any questions. About Morningstar, Inc. Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and services for individual investors, financial advisors, asset managers and owners, retirement plan providers and sponsors, institutional investors in the debt and private capital markets, and alliances and redistributors. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $370 billion in AUMA as of March 31, 2026. The Company operates through wholly-owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company. Follow Morningstar on X @MorningstarInc. Caution Concerning Forward-Looking Statements This press release contains forward-looking statements as that term is used in the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations about future events or future financial performance. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as "aim," "committed," "consider," "estimate," "future," "goal," "is designed to," "maintain," "may," "might," "objective," "ongoing," "could," "expect," "intend," "plan," "possible," "potential," "seek," "anticipate," "believe," "predict," "prospects," "continue," "strategy," "strive," "will," "would," "determine," "evaluate," or the negative thereof, and similar expressions. These statements involve known and unknown risks and uncertainties that may cause the events we discuss not to occur or to differ significantly from what we expect. For us, these risks and uncertainties include, among others, failing to achieve the anticipated benefits of the CRSP acquisition; failing to maintain and protect our brand, independence, and reputation; failing to prevent and/or mitigate cybersecurity events and the failure to protect confidential information, including personal information about individuals; changing economic and market conditions, including prolonged volatility, recessions, or downturns affecting the financial, data and software sectors and global financial markets, fluctuating interest rates, and the impacts of global trade policies, may negatively impact our financial results, including those of our asset-based businesses; compliance failures, regulatory action, or changes in or expansion of laws applicable to our regulated businesses; failing to innovate or streamline our product and service offerings or meet or anticipate our clients’ changing needs; impact of artificial intelligence technologies on our business and reputation, as well as legal and reputational risks as they are incorporated into our products and tools; failing to detect errors in our products or methodology of our products performing improperly due to defects, malfunctions or similar problems; failing to recruit, develop, and retain qualified employees; failing to scale our operations and increase productivity in order to implement our business plans and strategies, including failing to manage costs related thereto; liability for any losses that result from errors in our automated advisory tools or errors in the use of the information and data we collect; inadequacy of our operational risk management and business continuity programs to address materially disruptive events; our strategic transactions, acquisitions, divestitures and investments in companies or technologies failing to yield expected business or financial benefits, negatively impacting our operating results and our ability to deliver long-term value to shareholders; triggering events for impairment of goodwill or assets; failing to maintain growth across our businesses due to changes in geopolitics and the regulatory landscape; failing to recognize deferred revenue; liability relating to the information and data we collect, store, use, create, and distribute or the reports that we publish or are produced by our software products; the potential adverse effect of our indebtedness (and rising interest rates) on our cash flow and financial and operational flexibility; liability, regulatory scrutiny, costs and reputational risks relating to environmental, social, and governance considerations; our dependence on third-party service providers in our operations; inadequacy of our insurance coverage; challenges in accounting for tax complexities in the global jurisdictions we operate in could materially affect our tax obligations and tax rates; the potential impact of vendor consolidation and clients' strategic decisions to replace our products and services with in-house products and services; our ability to build and maintain short-term and long-term shareholder value and pay dividends to our shareholders; our ability to repurchase shares of our common stock; our ability to maintain existing business and renewal rates and to gain new business; the impact of recently issued accounting pronouncements on our consolidated financial statements and related disclosure; volatility in our stock price due to market conditions; any future sales of common stock and fluctuations in our operating results; and failing to protect our intellectual property rights or claims of intellectual property infringement against us. A more complete description of these risks and uncertainties, among others, can be found in our filings with the SEC, including our most recent Report on Form 10-K. If any of these risks and uncertainties materialize, our actual future results and other future events may vary significantly from what we expect. We do not undertake to update our forward-looking statements as a result of new information, future events or otherwise, except as may be required by law. You are, however, advised to review any further disclosures we make on related subjects, and about new or additional risks, uncertainties and assumptions in our future filings with the SEC on Forms 10-K, 10-Q, and 8-K. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Morningstar in any jurisdiction. ©2026 Morningstar, Inc. All rights reserved. MORN-C View source version on businesswire.com: https://www.businesswire.com/news/home/20260618663079/en/ Contacts Michael Claussen, +1 312 696-6037, [email protected]