| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 28.7x | 17.8x | Bottom tier | |
Growth | 65 | 6.6% | 7.1% | Around median | |
Quality | 84 | 18.7% | 4.5% | Top tier | |
Safety | 90 | 0.1x | 2.6x | Top tier | |
Capital Return | 50 | 0.76% | 2.12% | Around median | |
Momentum | 38 | 22.2% | 2.9% | Bottom tier | |
Sentiment | 61 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
UL Solutions provides safety science, testing, inspection, and certification services to help customers bring more complex products and systems to market across about 35 industries. Its business depends more on innovation and the number of new or redesigned products than on customers’ production volumes; the development of electric vehicles, AI data center equipment, energy storage systems, connected devices, and industrial automation creates demand for new testing and certifications. Its portfolio also includes the ULTRUS platform for compliance, product sustainability, and supply chain transparency.
In Q2 fiscal 2026, revenue increased 5.2% to $816 million, and organic growth reached 6.6%. The company reported gross profit of $417 million, equivalent to a gross margin of approximately 51.1%, GAAP net income of $246 million, and earnings per share of $1.21; meanwhile, adjusted net income, which excludes the divestiture gain, stock-based compensation, and other items, was $129 million, and adjusted diluted earnings per share increased 13.5% to $0.59.
The Industrial segment represented approximately 49.3% of Q2 fiscal 2026 revenue, with revenue of $402 million and organic growth of 7.2%, while the Consumer segment represented approximately 44.4%, with revenue of $362 million and organic growth of 6.2%. The Software and Advisory segment represented approximately 6.4%, with revenue of $52 million, down 17.5% due to the sale of the EHS Software business, but grew organically by 4.8% after excluding the divestiture impact. Adjusted earnings before interest, taxes, depreciation, and amortization increased 11.2% to a quarterly record of $219 million, with its margin expanding 140 basis points to 26.8%.
The analyst consensus rates ULS shares as “Buy,” with an average target of $100.17 and a wide range from $86 to $115. The average target is approximately 6.9% below the 52-week range high of $107.54, while the highest target exceeds that high, and the difference between the lowest and highest targets reflects meaningful disagreement about the impact of margin expansion, capital investments, and portfolio transaction execution risks.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $816 million, up 5.2%, and the business achieved organic growth of 6.6%. Gross profit was $417 million, while GAAP net income reached $246 million and earnings per share reached $1.21. Adjusted earnings before interest, taxes, depreciation, and amortization increased 11.2% to $219 million, with a margin of 26.8%. Adjusted net income was $129 million, and adjusted diluted earnings per share was $0.59.
The Industrial segment generated revenue of $402 million and organic growth of 7.2%, supported by materials, energy, and automation. Consumer segment revenue reached $362 million, with organic growth of 6.2%, driven by consumer technology testing, retail services, and ongoing certifications for devices and HVAC systems. Software and Advisory revenue declined to $52 million due to the sale of EHS Software, but it grew organically by 4.8% after excluding the impact of the sale. Together, the Industrial and Consumer segments accounted for approximately 93.6% of quarterly revenue.
On August 4, 2026, management reported demand for certifications of power supplies, racks, chips, and servers used in data centers. The energy, automation, and wire and cable businesses associated with data centers recorded double-digit growth within the Industrial segment. Testing of cooling equipment and HVAC systems in the Consumer segment also benefits from investment in new computing infrastructure. However, benefiting from this demand requires spending on laboratories, and the company raised its fiscal 2026 capital expenditure outlook to 8.5% of revenue.
Automated analysis for informational purposes only — not investment advice.
UL Solutions opened the Toyota City laboratory in Japan during June 2026 for high-voltage electromagnetic compatibility and high-speed rotation testing of electric, connected, and software-defined vehicles. The laboratory is one of the few facilities in Japan equipped for these tests, expanding the company’s ability to serve automakers. In Q2 fiscal 2026, the company added an AI-powered capability to ULTRUS UL 360 to calculate the carbon footprint of products and components. The new capability aims to improve supplier emissions data used in Scope 3 reporting as regulatory requirements evolve.
Management expects consolidated mid-single-digit organic growth compared with fiscal 2025, including an approximately 1% decline in revenue due to business exits associated with the restructuring plan. It is targeting an adjusted earnings before interest, taxes, depreciation, and amortization margin of approximately 27% and an effective tax rate of approximately 26%. It also expects capital expenditures equivalent to approximately 8.5% of revenue to complete laboratory investments and growth opportunities. The restructuring plan is expected to be completed by the end of Q1 fiscal 2027, with approximately $3 million of remaining pre-tax charges.
The company ended Q2 fiscal 2026 with cash and cash equivalents of $434 million and total debt of $303 million. During the twelve months ended June 30, 2026, it generated $678 million of operating cash flow and $436 million of free cash flow. Management expects to close the acquisition of Eurofins Electrical & Electronics in Q4 fiscal 2026, and also expects to close the sale of its stake in DQS during the second half of fiscal 2026. Acquisition and integration expenses and the timing of completing both transactions remain factors affecting execution of the portfolio strategy.
