$ULS · UL Solutions Inc.
UL Solutions reported Q3 2026 revenue of $823M (+5.1% YoY), with organic growth of 7.0% led by the Industrial segment. GAAP diluted EPS was $0.53 vs. $0.49 a year ago. Cash and equivalents ballooned to $1.0B from $295M at year-end 2025, largely reflecting a $191M gain on the EHS software divestiture and strong operating cash flow of $594M for the nine-month period.
- Revenue of $823M, up 5.1% YoY; organic growth of 7.0% driven by Industrial (+8.2%) and Consumer (+5.9%) segments.
- GAAP diluted EPS of $0.53 vs. $0.49 in Q3 2025; net income attributable to stockholders of $108M vs. $100M.
- Operating margin of 19.7%, down 20 bps YoY from 19.9% as SG&A grew to 31.6% of revenue from 30.4%.
- Cash and cash equivalents surged to $1,016M at Sept 30, 2026 from $295M at Dec 31, 2025, boosted by $191M gain on divestiture.
- Risk & Compliance Software revenue fell 17.2% to $53M due to the sale of the EHS software business.
Markets closed — no regular-session reaction yet; extended-hours move not captured here. ULS closed at $80.40 (+7.00% on the day) ahead of the filing.
UL Solutions delivered broad-based organic growth and now sits on $1.0B in cash following a major divestiture, giving it unusual strategic optionality for a testing/certification firm.
UL Solutions' 7.0% organic revenue growth and 19.7% operating margin compare favorably to testing/inspection peers facing macro pressure. The $191M divestiture gain and resulting $1.0B cash pile provide significant dry powder for M&A or capital returns.
Risk & Compliance Software segment shrank 17.2% YoY after the EHS divestiture, and organic growth there was only 4.7% — the segment posted a $3M operating loss in Q3 2026 vs. $7M profit a year ago. FX headwinds and acquisition/divestiture noise obscure underlying trends.