UL Solutions Inc. research snapshot
ULS AI stock analysis currently views UL Solutions as a durable applied safety science business with recurring certification work, strong operating leverage, and exposure to electrification, connected products, AI, and sustainability standards. The Q1 2026 result was strong: revenue rose 7.5% to $758 million, organic revenue grew 5.7%, adjusted EBITDA margin reached 26.0%, and free cash flow was $150 million. At the July 11, 2026 data cutoff, the $86.51 price reference implies a demanding valuation on annualized Q1 adjusted EPS. The AI stock forecast is scenario-based, not a price promise: upside needs sustained mid-single-digit organic growth, margin delivery, and disciplined acquisition execution, while downside can come from a valuation reset, industrial demand weakness, integration risk, or governance overhang.
Current price
$86.51 at the July 9, 2026 close
Market cap
$17.44 billion calculated from $86.51 x 201.56 million shares, versus $17.40 billion reported by StockAnalysis
AI score
70 / 100
Rating
High-quality testing, inspection, and certification compounder with strong Q1 execution, but a premium valuation and controlled-company governance risk
Trend status
Short-term down and long-term neutral: the July 8 close was below the 5, 10, 20, and 50-day averages but above the 200-day average
Data cutoff (updated weekly)
July 11, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | UL Solutions sells testing, inspection, certification, software, and advisory services that help customers bring products to market and demonstrate safety, security, and sustainability compliance in more than 110 countries. | High |
| Moat | The moat rests on brand trust, accreditations, technical expertise, standards knowledge, global lab capacity, customer workflow integration, and the cost of a failed safety or compliance decision. It is strongest where certification is embedded in product development and market access. | Medium-high |
| Management | CEO Jennifer Scanlon has led UL Solutions since 2019 and through the 2024 IPO. Q1 execution showed cost discipline and debt repayment, but investors should monitor the Eurofins E&E acquisition and whether capital allocation remains disciplined. | Medium-high |
| Financial trend | FY2025 revenue was $3.053 billion, adjusted EBITDA was $792 million, and free cash flow was $403 million. Q1 2026 revenue grew 7.5% to $758 million, net income grew 36.6% to $97 million, and free cash flow rose to $150 million. | High |
| Valuation | Using the July 9 price and annualized Q1 adjusted EPS of $2.00, verified math gives about 43.3x earnings and 43.3x FY2025 free cash flow per share. That leaves limited room for an operating miss. | Medium-high |
| Technical trend | At the July 8 close of $86.34, ChartMill rated the technical picture 1 out of 10: short-term trend down, long-term trend neutral, with price below the 50-day average near $96.64 and above the 200-day average near $84.11. | Medium |
| Risk level | Risk is moderate to high because valuation, cyclically sensitive industrial testing, the planned Eurofins E&E acquisition, regulatory or accreditation issues, and a 61.6% owner with 94.1% voting control can affect outcomes. | High |
| AI confidence | The fact base is strong, but forecast confidence is lower than financial-data confidence because the company has a short public-market record and the share price is sensitive to valuation multiples. | High data confidence |
| Investment certainty | ULS has a durable business model, but a better entry may depend on earnings compounding faster than the current multiple or on a wider valuation margin of safety. | Medium |
ULS AI stock forecast
The ULS AI stock forecast uses the $86.51 July 9 close, annualized Q1 2026 adjusted EPS of $2.00, and a three-year earnings multiple framework. The audited scenario model produces approximately $137 in the bullish case, $93 in the base case, and $53 in the bearish case. These are scenario outputs, not targets or predictions.
$125 to $140
More likely if mid-single-digit organic growth persists, adjusted EBITDA margin reaches or exceeds 27%, recurring certification demand stays strong, the Eurofins E&E acquisition closes and integrates well, and investors maintain a premium multiple for a high-quality services compounder.
$85 to $100
More likely if organic growth remains mid-single digit, margin progress continues, free cash flow stays healthy after capital expenditure, and the market values ULS near a mid-30s earnings multiple rather than expanding the multiple further.
$50 to $60
More likely if industrial or consumer testing demand slows, acquisition or restructuring costs rise, margins disappoint, a controlling-holder sale creates supply pressure, or the market moves toward a mid-20s earnings multiple.
ULS AI technical analysis
ULS AI technical analysis is cautious at the July 11, 2026 cutoff. ChartMill showed a July 8 close of $86.34, a short-term downtrend, a neutral long-term trend, and a weak 1 out of 10 technical rating. The chart sat below the 5-day, 10-day, 20-day, and 50-day averages, while the 200-day average near $84.11 remained a nearby long-term reference. Technical levels are time-sensitive and should be checked against a current chart before any decision.
| Level | Value | Why it matters |
|---|---|---|
| Price reference | $86.51 | July 9, 2026 closing price from Yahoo Finance history. ChartMill showed $86.34 at the July 8 close. |
| Immediate support | $86.33 | ChartMill identified this as a support zone formed by trend lines across time frames as of July 8, 2026. |
| Lower support | $77.65 | ChartMill identified weekly trend-line support. A break below the nearby support zone would put this level in focus. |
| Resistance | $99.05, then $104.89 | ChartMill identified weekly horizontal resistance near $99.05 and daily resistance near $104.89. |
| Moving averages | 5-day $91.74, 50-day $96.64, 200-day $84.11 | The close was below the short and intermediate averages but above the 200-day average in the July 8 ChartMill snapshot. |
| Momentum and volume | Technical rating 1 / 10; average volume 983.66K | ChartMill described recent price action as extended to the downside and advised waiting for consolidation rather than treating a weak move as confirmed strength. |
| Volatility | 13-week range $83.86 to $107.54 | The 13-week range from the July 8 technical snapshot shows that position size and invalidation rules matter. |
| Invalidation | Sustained close below $77.65 | A sustained break below the lower weekly support would weaken the technical case. A reclaim of $99.05 would be a more constructive confirmation point. |
ULS AI trading strategy
The ULS AI trading strategy below is a research framework, not personal financial advice. It connects the chart with earnings quality, organic growth, margin delivery, free cash flow, debt, acquisition execution, and governance risk.
Wait for ULS to reclaim and hold the $99.05 resistance area with improving volume and a stronger technical rating. Confirm that the next earnings release supports mid-single-digit organic growth and the approximately 27% adjusted EBITDA margin outlook.
Do not treat a brief bounce as a confirmed trend. A failed reclaim or a sustained close below $77.65 invalidates the stronger chart setup.
If price tests the $86.33 or $77.65 support areas, assess whether quarterly revenue, certification activity, free cash flow, and peer testing demand remain intact before treating the decline as a valuation opportunity.
Avoid averaging down if organic growth slows materially, margins contract, the Eurofins E&E transaction changes leverage unfavorably, or a share-sale overhang develops.
Track organic revenue growth, adjusted EBITDA margin, free cash flow, capital expenditure, debt, cash, Industrial and Consumer segment performance, acquisition financing, the controlling shareholder position, and certification demand linked to electrification and connected products.
Size risk for the premium valuation and governance structure. The monitoring list is more useful than a fixed price target because new filings and market conditions can quickly change the scenario.
Investment research summary
UL Solutions earns fees by helping manufacturers and other customers test, inspect, certify, and document that products and systems meet safety, security, and sustainability expectations. Customers pay because a failed compliance process can delay market access, raise liability exposure, or damage trust.
The moat combines the UL brand, technical credibility, accreditations, laboratory infrastructure, standards expertise, global reach, and embedded customer workflows. The main question is whether scale and trust keep growing faster than price competition and in-house alternatives.
The thesis fails if certification demand weakens with product cycles, cost inflation or restructuring erodes margins, the Eurofins E&E acquisition disappoints, regulation changes, a safety or quality failure harms the brand, or the market de-rates a premium multiple.
Jennifer Scanlon has led the business since 2019 and guided it through the IPO. The operational evidence to watch is margin conversion, free cash flow after capital expenditure, debt and acquisition discipline, and how management balances growth investment with returns to minority holders.
Electrification, connected devices, cybersecurity, AI-enabled products, supply-chain complexity, and sustainability claims can increase the need for independent testing and certification. The offset is that industrial activity, consumer product launches, and customer R&D budgets remain cyclical.
UL Standards & Engagement owned 61.6% of outstanding common stock and controlled 94.1% of voting power at December 31, 2025. That stability can support a long-term mission, but it also limits minority-holder influence and creates potential share-supply and related-party conflict risk.
The July price reference is supported by strong Q1 results, but verified valuation math is demanding. The margin of safety improves only if earnings and free cash flow compound faster than expected, or if a lower entry price compensates for execution and governance risks.
For a new observer, the evidence supports watchlist or staged research rather than a certainty claim. Existing holders should track organic growth, margin, cash flow, acquisition terms, and the $77.65 to $99.05 technical range. A thesis reset is warranted if recurring growth and margin execution weaken together.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Price reference | $86.51 close on July 9, 2026 | Yahoo Finance ULS price history | July 11, 2026 |
| Market capitalization verification | $17.44 billion calculated from $86.51 x 201.56 million total shares; StockAnalysis reported $17.40 billion | UL Solutions Q1 2026 Form 10-Q and StockAnalysis | July 11, 2026 |
| FY2025 revenue | $3.053 billion, up from $2.870 billion in FY2024 | UL Solutions 2025 Form 10-K | July 11, 2026 |
| FY2025 net income and free cash flow | $345 million net income and $403 million free cash flow | UL Solutions 2025 Form 10-K | July 11, 2026 |
| Q1 2026 revenue and organic growth | $758 million revenue, up 7.5%; organic growth 5.7% | UL Solutions Q1 2026 earnings release | July 11, 2026 |
| Q1 2026 profitability | $97 million net income, $0.45 diluted EPS, $0.50 adjusted diluted EPS, and 26.0% adjusted EBITDA margin | UL Solutions Q1 2026 earnings release | July 11, 2026 |
| Q1 2026 cash, debt, and free cash flow | $258 million cash, $360 million total debt before issuance costs, and $150 million free cash flow | UL Solutions Q1 2026 earnings release | July 11, 2026 |
| FY2026 outlook | Mid-single-digit constant-currency organic revenue growth, approximately 27.0% adjusted EBITDA margin, and capital expenditure of 7% to 8% of revenue | UL Solutions Q1 2026 earnings release | July 11, 2026 |
| Ownership and voting control | UL Standards & Engagement owned 61.6% of common stock and controlled 94.1% of combined voting power at December 31, 2025 | UL Solutions 2025 Form 10-K | July 11, 2026 |
| Technical references | Support $86.33 and $77.65; resistance $99.05 and $104.89; 50-day average $96.64; 200-day average $84.11 | ChartMill ULS technical analysis | July 11, 2026 |
This ULS AI stock analysis is an informational research tool only and is not investment advice, a recommendation, or a promise of future returns. Forecast scenarios use public data available through July 11, 2026 and may be wrong if company results, market prices, interest rates, acquisition terms, regulation, or investor sentiment change.
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