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U.S. Professional Services Industry Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies146
  • 7D1.4%
  • 3M-6.0%
  • 1Y-9.1%
  • YTD-5.1%

Over the last 7 days, the Professional Services industry has risen 1.4%, driven by gains from Automatic Data Processing of 2.6%. In the same time, Kanzhun was down 5.9%. However, the industry is down 9.1% over the past year. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

Has the U.S. Professional Services Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025US$472.8bUS$250.6bUS$13.8b24.8x34.3x1.9x
Thu, 13 Nov 2025US$465.7bUS$249.7bUS$13.9b24.4x33.5x1.9x
Sat, 11 Oct 2025US$497.1bUS$251.4bUS$14.9b25.4x33.3x2x
Mon, 08 Sep 2025US$507.7bUS$251.5bUS$14.8b26.9x34.4x2x
Wed, 06 Aug 2025US$507.0bUS$250.4bUS$14.4b22.5x35.2x2x
Fri, 04 Jul 2025US$510.3bUS$245.0bUS$14.9b25.7x34.3x2.1x
Sun, 01 Jun 2025US$511.5bUS$244.7bUS$15.0b22.4x34x2.1x
Tue, 29 Apr 2025US$482.4bUS$241.3bUS$15.2b20.7x31.8x2x
Thu, 27 Mar 2025US$492.1bUS$241.9bUS$14.8b21x33.3x2x
Sat, 22 Feb 2025US$545.6bUS$243.7bUS$15.8b22.5x34.5x2.2x
Mon, 20 Jan 2025US$563.7bUS$246.2bUS$14.8b24.8x38.1x2.3x
Wed, 18 Dec 2024US$565.1bUS$245.0bUS$14.9b25x37.8x2.3x
Fri, 15 Nov 2024US$593.5bUS$247.7bUS$15.2b25.1x39x2.4x
Sun, 13 Oct 2024US$560.3bUS$241.2bUS$12.9b27.8x43.5x2.3x
Tue, 10 Sep 2024US$535.5bUS$234.8bUS$12.7b27x42.2x2.3x
Thu, 08 Aug 2024US$511.1bUS$234.5bUS$12.8b26.2x40x2.2x
Sat, 06 Jul 2024US$491.7bUS$237.9bUS$12.5b24.4x39.5x2.1x
Mon, 03 Jun 2024US$494.6bUS$238.7bUS$12.5b25.3x39.7x2.1x
Wed, 01 May 2024US$495.7bUS$241.2bUS$11.8b25.5x42x2.1x
Fri, 29 Mar 2024US$507.4bUS$233.7bUS$11.4b27.1x44.5x2.2x
Sun, 25 Feb 2024US$513.4bUS$232.8bUS$12.7b27.5x40.4x2.2x
Tue, 23 Jan 2024US$510.8bUS$237.0bUS$12.8b26.7x39.8x2.2x
Thu, 21 Dec 2023US$504.4bUS$237.0bUS$12.7b25.7x39.7x2.1x
Sat, 18 Nov 2023US$474.7bUS$236.6bUS$12.3b25.1x38.7x2x
Mon, 16 Oct 2023US$493.6bUS$239.1bUS$9.6b23x51.6x2.1x
Wed, 13 Sep 2023US$493.6bUS$234.3bUS$9.4b23x52.4x2.1x
Fri, 11 Aug 2023US$501.9bUS$234.3bUS$9.2b23.2x54.7x2.1x
Sun, 09 Jul 2023US$452.9bUS$229.7bUS$9.1b21.4x49.6x2x
Tue, 06 Jun 2023US$472.8bUS$231.9bUS$9.5b21.7x49.7x2x
Thu, 04 May 2023US$460.6bUS$230.9bUS$9.7b22.3x47.5x2x
Sat, 01 Apr 2023US$464.2bUS$228.3bUS$10.6b23.3x43.6x2x
Mon, 27 Feb 2023US$256.3bUS$163.7bUS$2.9b20.5x88.9x1.6x
Wed, 25 Jan 2023US$262.8bUS$161.9bUS$3.4b21x77.8x1.6x
Fri, 23 Dec 2022US$249.7bUS$161.1bUS$3.4b20.5x72.5x1.5x
Price to Earnings Ratio

72.5x


Total Market Cap: US$249.7bTotal Earnings: US$3.4bTotal Revenue: US$161.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 43.8x202320242025
Current Industry PE
  • Investors are pessimistic on the American Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 34.3x which is lower than its 3-year average PE of 43.8x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 59% per year over the last three years.
  • Revenues for these companies have grown 16% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Industrials industry?

US Market-0.69%
Industrials1.23%
Professional Services1.43%
HR Services2.05%
Research and Consulting Services0.89%
Industry PE
  • Investors are most optimistic about the HR Services industry which is trading above its 3-year average PE ratio of 34.7x.
    • Analysts are expecting annual earnings growth of 15.3%, which is higher than its past year's earnings decline of 1.0% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 154x.
Forecasted Growth
  • Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 18% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the HR Services industry is expected to see its earnings grow by 15% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
ADP Automatic Data ProcessingUS$264.952.6%
+US$2.7b		-10.4%PE25.9x
PL Planet Labs PBCUS$18.0539.4%
+US$1.7b		316.9%PS20x
PAYX PaychexUS$115.382.3%
+US$950.1m		-17.8%PE25.7x
EFX EquifaxUS$217.023.2%
+US$823.7m		-20.7%PE40.3x
TRU TransUnionUS$83.633.0%
+US$470.0m		-14.9%PE38.6x

Latest News

BZ
US$20.03
Kanzhun
7D
-5.9%
1Y
44.0%

BZ: Future Cash Flow Resilience Will Drive Continued Share Upside

Analysts have nudged their price target for Kanzhun slightly higher to approximately $25.98 per share, up from about $25.93. This adjustment reflects modestly stronger expectations for long term revenue growth and a marginally lower discount rate, which more than offset a minor trim to projected profit margins.
CACI
US$567.41
CACI International
7D
-4.4%
1Y
36.1%
KBR
US$43.08
KBR
7D
-1.2%
1Y
-26.5%

KBR: Spinoff And Resilient Margins Will Drive Medium-Term Upside Potential

Analysts have lowered their KBR price target from $78 to $65 as they factor in a slower growth backdrop, higher discount rates, and near term revenue headwinds from the announced spinoff and government related project delays, while still acknowledging resilient profitability and potential long term value creation from the separation of MTS and STS. Analyst Commentary Bullish analysts acknowledge near term headwinds but continue to highlight multiple structural and company specific catalysts that could support KBR's valuation over the medium term.
PSN
US$61.61
Parsons
7D
-2.5%
1Y
-37.1%
PL
US$18.05
Planet Labs PBC
7D
39.4%
1Y
316.9%
VRSK
US$218.23
Verisk Analytics
7D
1.0%
1Y
-22.1%

VRSK: Upcoming Guidance And AI Spend Will Drive Renewed Bullish Repricing

Analysts have modestly trimmed their blended price target on Verisk Analytics, reflecting a balancing of concerns over near term dilution, leverage and slowing organic growth against confidence that recent headwinds are temporary and aligned with a mid single digit to high single digit growth trajectory. Analyst Commentary Recent Street research reveals a divided view on Verisk Analytics, with some analysts highlighting resilient long term growth drivers while others focus on valuation risk and execution headwinds following the latest quarterly results and the AccuLynx acquisition.
PAYX
US$115.38
Paychex
7D
2.3%
1Y
-17.8%

PAYX: Acquisition Synergy Will Support Suite Expansion Amid Cyclical Labor Market Uncertainty

Analysts modestly reduced their fair value estimate for Paychex to approximately $128 from about $134 per share, citing slightly softer assumptions for long term revenue growth, profit margins, and valuation multiples amid heightened macroeconomic and labor market uncertainty. Analyst Commentary Street research on Paychex reflects a generally cautious, wait and see stance, with most firms maintaining neutral or Hold type ratings while trimming price targets.
EFX
US$217.02
Equifax
7D
3.2%
1Y
-20.7%

EFX: High Entry Barriers Will Sustain Resilience Amid FICO Mortgage License Headwinds

Analysts have nudged their average price target for Equifax slightly lower, trimming fair value by about $0.55 to roughly $267.25, as they factor in modestly higher long term headwinds from FICO's Mortgage Direct License Program and related credit bureau competition, despite still solid growth and margin assumptions. Analyst Commentary Street research reflects a mixed but generally constructive stance on Equifax, with views diverging around how disruptive FICO's Mortgage Direct License Program will ultimately be to the company's growth, margins, and valuation.
ADP
US$264.95
Automatic Data Processing
7D
2.6%
1Y
-10.4%

ADP: Dividend Strength Will Support Returns Despite Cyclical Employment Headwinds

The analyst price target for Automatic Data Processing has been trimmed slightly as fair value moves from approximately $293.23 to $291.31 per share. Analysts cite a tougher path for sustaining premium valuation multiples amid slowing employment trends, cyclical concerns in payroll outsourcing, and evolving macro and interest rate expectations despite solid recent operating performance.
TRU
US$83.63
TransUnion
7D
3.0%
1Y
-14.9%
EXLS
US$41.52
ExlService Holdings
7D
3.6%
1Y
-8.9%

EXLS: AI Data Suite And Fraud Platform Will Drive 2025 Momentum

Analysts have modestly raised their price target on ExlService Holdings to 52.29 dollars from 52.29 dollars. This reflects slightly lower discount rate assumptions and a largely unchanged outlook for revenue growth, profit margins, and future valuation multiples.
INOD
US$49.23
Innodata
7D
-11.8%
1Y
31.0%

INOD: Early Enterprise AI Adoption Will Drive Expanding Customer Base Opportunities

Analysts have raised their price target on Innodata shares from $74 to $110, citing the company’s strong positioning to benefit from early stage enterprise AI adoption and a broadening customer base beyond traditional technology companies. Analyst Commentary Bullish analysts point to the latest price target increase as evidence that expectations for Innodata's growth trajectory are accelerating, particularly as enterprises begin to scale AI initiatives across more functions.
CLVT
US$3.54
Clarivate
7D
-4.6%
1Y
-35.4%

CLVT: Share Buybacks And Raised Guidance Will Support Future Performance

Analysts have slightly lowered their price target on Clarivate to reflect modestly reduced discount rate assumptions and a marginally lower future price-to-earnings multiple, while keeping their fair value estimate effectively unchanged at approximately $4.93 per share. What's in the News Clarivate completed a share repurchase of 34,823,885 shares, representing 5.11% of outstanding shares, for a total of $149.47 million under its December 16, 2024 buyback authorization (Key Developments).
FA
US$15.02
First Advantage
7D
10.1%
1Y
-22.3%

FA Synergy Benefits And Tighter Guidance Range Will Support Stronger Earnings

Narrative Update on First Advantage Analysts have modestly lifted their price target on First Advantage to approximately $17.43. This reflects slightly lower perceived risk and marginally improved valuation assumptions, while growth and profitability forecasts remain largely unchanged.
J
US$135.52
Jacobs Solutions
7D
-3.2%
1Y
-1.3%
FBYD
US$12.52
Falcon's Beyond Global
7D
-33.1%
1Y
36.2%

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Nov 16
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