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

It's been a good week for UL Solutions Inc. (NYSE:ULS) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.3% to US$85.68. UL Solutions reported US$783m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.49 beat expectations, being 9.9% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from UL Solutions' eleven analysts is for revenues of US$3.22b in 2026. This reflects a satisfactory 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to US$1.96. Before this earnings report, the analysts had been forecasting revenues of US$3.22b and earnings per share (EPS) of US$1.87 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for UL Solutions

The consensus price target rose 21% to US$87.01, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic UL Solutions analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$75.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.6% growth on an annualised basis. That is in line with its 5.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.9% annually. It's clear that while UL Solutions' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards UL Solutions following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for UL Solutions going out to 2027, and you can see them free on our platform here.

You can also see whether UL Solutions is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.