Earnings Beat: UL Solutions Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

The investors in UL Solutions Inc.'s (NYSE:ULS) will be rubbing their hands together with glee today, after the share price leapt 21% to US$70.49 in the week following its first-quarter results. The result was positive overall - although revenues of US$705m were in line with what the analysts predicted, UL Solutions surprised by delivering a statutory profit of US$0.33 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about UL Solutions. View them for free.

Taking into account the latest results, the most recent consensus for UL Solutions from eleven analysts is for revenues of US$3.03b in 2025. If met, it would imply a modest 4.4% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$1.68, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.03b and earnings per share (EPS) of US$1.62 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for UL Solutions

The consensus price target rose 15% to US$67.75, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic UL Solutions analyst has a price target of US$78.00 per share, while the most pessimistic values it at US$59.00. This is a very narrow spread of estimates, implying either that UL Solutions is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of UL Solutions'historical trends, as the 5.8% annualised revenue growth to the end of 2025 is roughly in line with the 5.2% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.9% annually. So although UL Solutions is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around UL Solutions' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for UL Solutions going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - UL Solutions has 1 warning sign we think you should be aware of.

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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.