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U.S. Professional Services Industry Analysis

UpdatedMar 10, 2026
DataAggregated Company Financials
Companies150
  • 7D0.9%
  • 3M-9.7%
  • 1Y-15.5%
  • YTD-9.0%

The Professional Services is pretty flat in the last 7 days, but Automatic Data Processing has stood out, gaining 3.8%. Unfortunately though, the industry is down 16% over the past 12 months. Earnings are forecast to grow by 14% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 10 Mar 2026US$411.0bUS$245.9bUS$11.8b20.7x34.8x1.7x
Thu, 05 Feb 2026US$419.0bUS$250.7bUS$12.8b21.4x32.6x1.7x
Sat, 03 Jan 2026US$466.5bUS$251.6bUS$13.8b24x33.7x1.9x
Mon, 01 Dec 2025US$466.2bUS$251.9bUS$13.9b24.3x33.6x1.9x
Wed, 29 Oct 2025US$488.7bUS$250.4bUS$14.7b27.2x33.4x2x
Fri, 26 Sep 2025US$505.2bUS$251.1bUS$14.9b25.9x33.8x2x
Sun, 24 Aug 2025US$527.2bUS$253.9bUS$14.7b26.5x35.9x2.1x
Tue, 22 Jul 2025US$505.0bUS$245.0bUS$14.8b23.5x34.2x2.1x
Thu, 19 Jun 2025US$498.5bUS$244.8bUS$15.0b22.5x33.2x2x
Sat, 17 May 2025US$516.7bUS$244.5bUS$15.0b23.5x34.5x2.1x
Mon, 14 Apr 2025US$479.7bUS$241.7bUS$14.8b20.8x32.4x2x
Wed, 12 Mar 2025US$494.7bUS$241.7bUS$14.7b20.7x33.7x2x
Fri, 07 Feb 2025US$569.5bUS$248.8bUS$15.0b24.2x37.9x2.3x
Sun, 05 Jan 2025US$551.2bUS$246.0bUS$14.8b24.4x37.1x2.2x
Tue, 03 Dec 2024US$582.4bUS$242.2bUS$15.2b25.7x38.4x2.4x
Thu, 31 Oct 2024US$566.9bUS$247.5bUS$14.7b27.5x38.6x2.3x
Sat, 28 Sep 2024US$542.8bUS$235.5bUS$12.6b28.3x43x2.3x
Mon, 26 Aug 2024US$539.0bUS$234.8bUS$12.8b27.7x42x2.3x
Wed, 24 Jul 2024US$519.9bUS$237.6bUS$12.5b26.9x41.7x2.2x
Fri, 21 Jun 2024US$495.6bUS$238.2bUS$12.5b24.4x39.6x2.1x
Sun, 19 May 2024US$514.0bUS$238.4bUS$12.3b25.8x41.9x2.2x
Tue, 16 Apr 2024US$497.1bUS$236.4bUS$11.7b26.2x42.5x2.1x
Thu, 14 Mar 2024US$504.7bUS$233.2bUS$11.5b26.8x44x2.2x
Sat, 10 Feb 2024US$501.3bUS$231.7bUS$12.4b27.1x40.5x2.2x
Mon, 08 Jan 2024US$492.6bUS$237.0bUS$12.7b24.5x38.7x2.1x
Wed, 06 Dec 2023US$496.1bUS$237.0bUS$12.2b25.3x40.6x2.1x
Fri, 03 Nov 2023US$443.4bUS$236.1bUS$7.8b22.2x57x1.9x
Sun, 01 Oct 2023US$476.5bUS$234.4bUS$9.5b23x50.4x2x
Tue, 29 Aug 2023US$499.4bUS$234.3bUS$9.2b23.4x54.4x2.1x
Thu, 27 Jul 2023US$476.1bUS$229.8bUS$8.9b22x53.7x2.1x
Sat, 24 Jun 2023US$475.5bUS$231.9bUS$9.5b21.9x50x2.1x
Mon, 22 May 2023US$461.1bUS$231.6bUS$9.6b20.9x47.8x2x
Wed, 19 Apr 2023US$459.7bUS$228.2bUS$10.6b22.7x43.3x2x
Fri, 17 Mar 2023US$248.8bUS$163.5bUS$3.2b18.6x78.7x1.5x
Price to Earnings Ratio

78.7x


Total Market Cap: US$248.8bTotal Earnings: US$3.2bTotal Revenue: US$163.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 40.4x202420252026
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 34.8x which is lower than its 3-year average PE of 40.4x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.7x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 55% per year over the last three years.
  • Revenues for these companies have grown 15% 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-1.50%
Industrials-4.53%
Professional Services0.94%
HR Services3.52%
Research and Consulting Services-1.30%
Industry PE
  • Investors are most optimistic about the HR Services industry which is trading above its 3-year average PE ratio of 35.6x.
    • Analysts are expecting annual earnings growth of 11.5%, which is higher than its past year's earnings decline of 2.2% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 145x.
Forecasted Growth
  • Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings growth rate of 1.1% per year.
  • In contrast, the HR Services industry is expected to see its earnings grow by 12% 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$223.043.8%
+US$3.2b		-26.4%PE21.2x
PAYX PaychexUS$98.304.3%
+US$1.5b		-36.4%PE22.1x
PCTY Paylocity HoldingUS$117.959.4%
+US$546.8m		-37.5%PE26.7x
PAYC Paycom SoftwareUS$138.257.8%
+US$529.0m		-36.3%PE16.2x
BAH Booz Allen Hamilton HoldingUS$81.434.7%
+US$436.6m		-27.7%PE11.8x

Latest News

TRU
US$76.05
TransUnion
7D
-2.9%
1Y
-5.9%
KBR
US$39.38
KBR
7D
-5.2%
1Y
-23.0%
ULS
US$82.49
UL Solutions
7D
-1.4%
1Y
60.8%

ULS: Margin Strength And Capital Returns Will Support Future Upside

The analyst price target for UL Solutions has been adjusted slightly lower to reflect a modest trim in fair value to $93.25. Analysts cite a higher discount rate, slightly softer revenue growth assumptions, and offsetting support from stronger projected profit margins and a steady future P/E multiple.
MMS
US$77.28
Maximus
7D
4.6%
1Y
10.4%

MMS: Dividend Hike And Buybacks Will Support Future Share Returns

Analysts have maintained their $110 price target for Maximus, citing slightly revised assumptions for the discount rate, profit margin, and future P/E as the main factors supporting this reaffirmed view. What's in the News Management narrowed fiscal 2026 revenue guidance to a range of US$5.2b to US$5.35b, with US$25 million of the change tied to the divested U.S. Services Segment business (Corporate Guidance).
BR
US$189.01
Broadridge Financial Solutions
7D
1.3%
1Y
-18.7%
BZ
US$15.07
Kanzhun
7D
-6.9%
1Y
-13.4%
VRSK
US$210.28
Verisk Analytics
7D
-2.1%
1Y
-29.4%
ADP
US$223.04
Automatic Data Processing
7D
3.8%
1Y
-26.4%
PSN
US$62.55
Parsons
7D
-7.8%
1Y
6.9%

PSN: Long Term Federal Contracts Will Support Future Upside

Analysts have maintained their $80.82 price target for Parsons, reflecting only very small adjustments to discount rate, revenue growth, profit margin, and future P/E assumptions rather than a change in their overall view of the shares. What's in the News Issued fiscal 2026 revenue guidance in a range of $6.5b to $6.8b, giving investors a clearer view of expected top line for that year (Corporate guidance).
EFX
US$204.61
Equifax
7D
-1.6%
1Y
-18.1%
BAH
US$81.43
Booz Allen Hamilton Holding
7D
4.7%
1Y
-27.7%

BAH: High Short Interest And Raised EPS Guidance May Drive Future Upside

Analysts have slightly increased their price targets for Booz Allen Hamilton Holding, reflected in a modest fair value move from about $145.39 to $146.07. They are factoring in updated assumptions on revenue growth, margins, discount rate, and a future P/E near 25x supported by recent Street research.
PAYC
US$138.25
Paycom Software
7D
7.8%
1Y
-36.3%
PAYX
US$98.30
Paychex
7D
4.3%
1Y
-36.4%

PAYX: AI And Buybacks Will Counter Defensive Competitive Pressures Over Time

Analysts have trimmed their Paychex price target slightly to about $119 per share, reflecting modest adjustments to fair value, discount rate, revenue growth, profit margin, and future P/E assumptions following new bearish coverage that characterizes recent competitive moves as largely defensive. Analyst Commentary Recent research frames the latest competitive response, including the Paycor related move, as more defensive than opportunistic.
CLVT
US$2.61
Clarivate
7D
13.0%
1Y
-39.7%
J
US$134.67
Jacobs Solutions
7D
-3.1%
1Y
9.0%

J: Defense And Infrastructure Contracts Will Support Steady Upside Potential

Analysts have kept their fair value estimate for Jacobs Solutions steady at about $158 per share, with a slightly higher discount rate and future P/E assumption informing the updated price target rationale. What's in the News Jacobs and PA Consulting secured a four year extension from the U.K. Department for Transport to continue leading the National Security Science and Research program, focusing on security and resilience across air, road and rail networks (Client Announcements).
PCTY
US$117.95
Paylocity Holding
7D
9.4%
1Y
-37.5%

PCTY: 2026 Sector Setup And Buybacks Will Drive Upside

Our updated narrative on Paylocity reflects a reduced analyst price target of about $226, in line with a broad round of target cuts across the Street as analysts recalibrate for slightly lower revenue growth, narrower profit margin assumptions, a modestly higher discount rate, and a marginally higher future P/E multiple. Analyst Commentary Across the Street, most recent research has centered on recalibrating Paylocity price targets, with a cluster of firms trimming targets by between $5 and $75.