UL Solutions Inc. (ULS) · Nov 3, 2026 · Earnings
Beat — Adjusted EPS $0.62 vs ~$0.60 consensus; revenue $823M vs ~$817M
UL Solutions earnings narrowly beat consensus, while stronger organic demand lifted 2026 growth guidance to about 6.5%.
UL Solutions is reshaping itself around its core testing, inspection and certification business: it sold non-core safety software, completed the $686 million E&E acquisition, and is targeting growth from electrification, connected products and global compliance demand. Its prior 2026 outlook called for mid-single-digit organic growth and roughly 27% Adjusted EBITDA margin.
The quarter beat a fairly high bar, but not by a wide margin. Adjusted diluted EPS of $0.62 exceeded published consensus of roughly $0.60, while revenue of $823 million topped estimates near $817 million. The more important operating figure was 7.0% organic growth, ahead of the company’s prior mid-single-digit framing.
| Metric | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Revenue (Financial Results) | $823M (+5.1%) | $783M | ~$817M |
| Adjusted diluted EPS (EPS reconciliation) | $0.62 (+10.7%) | $0.56 | ~$0.60 |
| Adjusted EBITDA margin (Financial Highlights) | 28.6% (+90 bps) | 27.7% |
The real upgrade is to the growth outlook, not the margin target. UL Solutions raised full-year organic revenue growth to approximately 6.5%, while reaffirming roughly 27.0% Adjusted EBITDA margin. That says demand and execution are running ahead of the earlier baseline, but management still expects transaction costs from the E&E deal to absorb part of the underlying margin improvement. 〔0〕
The core businesses are carrying the result while software remains the weak spot. Industrial revenue grew 8.2% and Consumer grew 5.9%, with both segments expanding margins; Risk & Compliance Software revenue fell 17.2% and its operating margin turned negative. The decline is partly portfolio-related after the software divestiture, but it means the headline growth is increasingly dependent on the TIC businesses that UL Solutions is prioritizing. 〔1〕
Cash generation gives the acquisition strategy room to operate, but leverage has stepped up. Nine-month operating cash flow rose to $594 million and free cash flow to $395 million, while debt increased to fund the E&E purchase. The acquisition closed October 1, immediately after quarter-end, so this quarter largely shows the business before the deal’s contribution and leaves integration execution as the next major test.
Bottom line: This was a genuine operational beat with a useful organic-growth upgrade, not just a favorable presentation. The story is strengthening in the core TIC businesses, but the newly enlarged company still has to prove that E&E integration can outweigh software weakness and added transaction costs.
E&E integration and full-year 2026 results, early 2027
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