It's been a mediocre week for UL Solutions Inc. (NYSE:ULS) shareholders, with the stock dropping 17% to US$76.86 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of US$816m were what the analysts expected, UL Solutions surprised by delivering a (statutory) profit of US$1.21 per share, an impressive 135% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from UL Solutions' twelve analysts is for revenues of US$3.21b in 2026. This reflects a reasonable 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to US$2.78. In the lead-up to this report, the analysts had been modelling revenues of US$3.21b and earnings per share (EPS) of US$2.11 in 2026. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The average the analysts price target fell 11% to US$97.32, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic UL Solutions analyst has a price target of US$120 per share, while the most pessimistic values it at US$79.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that UL Solutions' revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 6.7% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that UL Solutions is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that UL Solutions' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of UL Solutions' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for UL Solutions going out to 2028, and you can see them free on our platform here..

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.