Abstract

UL Solutions Inc is scheduled to release its quarterly results on February 19, 2026 Pre-Market, with consensus pointing to mid‑single‑digit revenue growth and a moderation in earnings versus a strong prior quarter while investors focus on mix, pricing, and the trajectory of its software and advisory revenue.

Market Forecast

Based on the latest compiled expectations, UL Solutions Inc’s current-quarter revenue is projected at $782.31 million, implying year-over-year growth of 7.68%, while EPS is estimated at $0.45, implying a year-over-year increase of 20.04%; EBIT is projected at $122.72 million, up 11.71% year-over-year. Forecasts available do not include explicit gross margin or net margin targets for the quarter; consensus framing emphasizes revenue growth and EPS progression on a more moderate operating base following a strong previous print.

Main business highlights center on a balanced top line between the two core services groups and continued discipline on price and cost, with stable sequential revenue expected against last quarter’s $783.00 million. The most promising segment remains Software and Advisory, which generated $100.00 million last quarter; year-over-year growth for this segment was not disclosed in the available dataset, but investors are attentive to its potential for recurring revenue and higher-margin accretion.

Last Quarter Review

In the prior quarter, UL Solutions Inc delivered revenue of $783.00 million (up 7.11% year-over-year), a gross profit margin of 50.32%, GAAP net income attributable to shareholders of $100.00 million, a net profit margin of 12.77%, and adjusted EPS of $0.56 (up 27.27% year-over-year).

A key highlight was profitability outperformance, with EBIT at $171.00 million coming in above the prior estimate by $28.97 million, and GAAP net income rising 9.89% quarter-on-quarter alongside a slight revenue beat. In the business mix, Industrial contributed $343.00 million (43.81% of revenue), Consumer contributed $340.00 million (43.42%), and Software and Advisory contributed $100.00 million (12.77%); year-over-year growth by segment was not provided in the dataset, but the mix indicates a broad base of contribution.

Current Quarter Outlook

Main business performance and margin dynamics

The current-quarter setup implies a largely stable revenue trajectory against the prior period’s $783.00 million, with consensus now at $782.31 million. The bridge from last quarter’s performance centers on maintaining pricing and service throughput while navigating normal seasonality. Although explicit gross margin and net margin forecasts are not available in the compiled data, last quarter’s 50.32% gross margin and 12.77% net margin provide a recent reference point for investors gauging directional shifts.

Management’s operating discipline remains a key theme. The prior quarter demonstrated solid conversion of sales into profit, evidenced by EBIT of $171.00 million on $783.00 million revenue. For this quarter, the $122.72 million EBIT estimate suggests typical intra-year variability and a reset off a strong base rather than structural deterioration; investors will parse expense lines for signals on SG&A leverage and any timing effects in project delivery. In the absence of disclosed margin guidance, the focus will instead be on revenue quality—particularly mix between shorter-cycle testing and longer-duration engagements—and the degree to which pricing actions sustain contribution margins.

A second operational focal point is cash conversion relative to earnings. While the available dataset does not include cash flow metrics, the persistence of a roughly even split between Industrial and Consumer revenue in the last print points to a diversified contribution base that can smooth quarter-to-quarter cash patterns. Any commentary on backlog conversion into the first half of the year and milestone timing can influence how investors interpret EPS cadence versus the consensus $0.45 estimate.

Software and Advisory outlook and growth optionality

Software and Advisory remains the area of highest structural potential, with $100.00 million in last quarter revenue and characteristics that can enhance margin profile through recurring revenue, multi-year agreements, and cross-sell into established enterprise relationships. The current quarter’s EPS growth estimate of 20.04% year-over-year underscores the importance of higher-value offerings and mix to earnings power even if top-line growth moderates. In practical terms, incremental expansions in software deployments or advisory mandates can disproportionately lift operating income due to lower incremental delivery costs relative to certain services.

Investors will look for commentary on new bookings, renewal rates, and attachment to core service workflows to assess the durability of this momentum. While the dataset does not provide segment-level year-over-year growth, the stability of the broader revenue base allows Software and Advisory progress to translate more visibly to margins when executed at scale. Any indication of expanding average contract value, broadened modules, or increased uptake across existing customers would likely support confidence in the above-corporate-average growth trajectory the market anticipates for this segment.

This quarter, an additional lens for this business will be the reconciliation between EBIT expectations and revenue growth. With EBIT forecast to grow 11.71% year-over-year versus revenue growth of 7.68%, investors may infer incremental mix benefit or operating efficiency. Should Software and Advisory capture a larger share of quarterly revenue than last quarter’s 12.77%, margin sensitivity could skew positively; conversely, if deployment or start dates push to subsequent quarters, the timing of revenue recognition could defer mix benefits.

Key stock price drivers into the print

Three variables appear most relevant for near-term share reaction: the revenue and EPS print relative to consensus ($782.31 million and $0.45, respectively), the trajectory of margins versus last quarter’s 50.32% gross and 12.77% net, and the qualitative tone on demand and pipeline conversion. A top-line print close to flat sequentially is widely anticipated following last quarter’s strength; upside will depend on evidence of sustained pricing, favorable mix, or faster conversion of high-value work. Conversely, a miss on EPS relative to the $0.45 estimate would likely be penalized if it reflects weaker mix, cost inflation, or project timing rather than discrete items.

Valuation sensitivity is an additional crosscurrent. Recent rating actions point to increased scrutiny of multiples, with neutral stances acknowledging quality of execution while flagging less room for disappointment. Against this backdrop, reiteration of revenue visibility into the next quarter and any upgrades to the multi-quarter view for Software and Advisory would be supportive for sentiment. If management guides to stable or improving contribution margins, the market may be inclined to look through seasonal or timing-related variability in EBIT.

Finally, investors will parse management’s capital allocation and investment cadence. Though the dataset does not include specific guidance on capital returns or spending, even modest changes in investment pace can affect near-term margin expectations. Clarity on productivity initiatives, automation within delivery, or platform investments can shape how the Street calibrates the out-quarter EPS trajectory after this print.

Analyst Opinions

The pre-earnings research tone is tilted bullish overall, with the aggregated sell-side stance characterized as Overweight and a mean price target of $92.34, even as some high-profile institutions maintain neutral ratings amid valuation considerations. UBS has maintained a Neutral rating while reducing its price target to $85 from $96, and J.P. Morgan recently shifted to Hold with an $84 price target; these views emphasize caution on multiple rather than concerns about operational resilience. The majority signal, however, reflects constructive expectations for the quarter given mid‑single‑digit revenue growth forecasts and double‑digit year‑over‑year gains in EPS and EBIT.

From a forecasting standpoint, the bullish camp points to three supportive factors: consistency in top-line delivery anchored by a broad customer base; signs that higher-value services and software are taking a larger share of the mix; and the likelihood that operating discipline holds margins within a narrow band even if sequential revenue is flat. The consensus $782.31 million revenue and $0.45 EPS imply that upside can come from incremental mix improvement or cost control, while downside risks are more closely tied to valuation and timing of project revenue rather than an abrupt demand slowdown.

In their assessments, bullish analysts highlight the prior quarter’s execution—revenue of $783.00 million with 50.32% gross margin and a 12.77% net margin, and an EBIT beat to $171.00 million—as evidence that the company can navigate variability while delivering on earnings. They also note that current-quarter estimates embed conservative sequential assumptions after a strong comparison, creating favorable conditions for positive surprise if revenue recognition and pricing remain steady. With Software and Advisory at $100.00 million last quarter and viewed as a higher‑margin vector, sell-side models that assume incremental mix benefit help justify expectations for 11.71% EBIT growth and 20.04% EPS growth year-over-year despite modest top-line acceleration.

In sum, the prevailing analyst view into February 19, 2026 is constructive: consensus expects year-over-year revenue growth of 7.68% and healthy profit progression, with share reaction likely keyed to confirmation of mix and operating leverage. While a subset of firms underscores valuation as a near-term anchor, the balance of commentary indicates confidence in execution and a bias toward positive EPS delivery, which anchors the majority bullish stance for this quarter’s preview.