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U.S. Professional Services Industry Analysis

UpdatedJul 24, 2026
DataAggregated Company Financials
Companies152
  • 7D-3.9%
  • 3M4.2%
  • 1Y-22.8%
  • YTD-12.8%

Over the last 7 days, the Professional Services industry has dropped 3.9%, driven by a pullback from Automatic Data Processing of 5.3%. Overall the industry is down 23% in 12 months. Looking forward, earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 24 Jul 2026US$387.4bUS$250.1bUS$12.6b22.2x30.9x1.5x
Sun, 21 Jun 2026US$356.6bUS$247.6bUS$12.1b18.7x29.4x1.4x
Tue, 19 May 2026US$363.1bUS$247.7bUS$12.1b18.9x30x1.5x
Thu, 16 Apr 2026US$372.0bUS$245.7bUS$11.6b19.5x32.2x1.5x
Sat, 14 Mar 2026US$382.7bUS$246.1bUS$11.7b18.9x32.8x1.6x
Mon, 09 Feb 2026US$424.6bUS$251.0bUS$12.8b21.5x33.1x1.7x
Wed, 07 Jan 2026US$475.3bUS$251.7bUS$13.8b25x34.4x1.9x
Fri, 05 Dec 2025US$467.0bUS$251.9bUS$13.9b24.9x33.6x1.9x
Sun, 02 Nov 2025US$466.0bUS$248.3bUS$14.9b25.4x31.2x1.9x
Tue, 30 Sep 2025US$503.3bUS$251.2bUS$15.0b26.2x33.6x2x
Thu, 28 Aug 2025US$517.0bUS$251.5bUS$14.7b26.6x35.1x2.1x
Sat, 26 Jul 2025US$511.7bUS$245.4bUS$14.7b24.2x34.9x2.1x
Mon, 23 Jun 2025US$491.9bUS$244.8bUS$15.0b22.5x32.8x2x
Wed, 21 May 2025US$524.2bUS$244.5bUS$15.0b23.1x35x2.1x
Fri, 18 Apr 2025US$472.8bUS$240.7bUS$15.0b20.2x31.5x2x
Sun, 16 Mar 2025US$482.3bUS$241.7bUS$14.7b21.2x32.8x2x
Tue, 11 Feb 2025US$563.4bUS$249.2bUS$14.9b24x37.8x2.3x
Thu, 09 Jan 2025US$544.8bUS$246.0bUS$14.8b24x36.7x2.2x
Sat, 07 Dec 2024US$574.1bUS$242.3bUS$15.3b24.9x37.6x2.4x
Mon, 04 Nov 2024US$567.2bUS$247.8bUS$14.9b27x38.1x2.3x
Wed, 02 Oct 2024US$545.6bUS$235.6bUS$12.6b28.4x43.2x2.3x
Fri, 30 Aug 2024US$540.1bUS$234.8bUS$12.8b27.8x42.1x2.3x
Sun, 28 Jul 2024US$518.8bUS$233.1bUS$12.7b27.6x40.9x2.2x
Tue, 25 Jun 2024US$500.2bUS$237.8bUS$12.4b24.7x40.3x2.1x
Thu, 23 May 2024US$512.0bUS$238.4bUS$12.3b25.9x41.8x2.1x
Sat, 20 Apr 2024US$482.7bUS$236.1bUS$11.5b25.9x42.1x2x
Mon, 18 Mar 2024US$495.5bUS$233.1bUS$11.5b26.3x43.2x2.1x
Wed, 14 Feb 2024US$495.5bUS$232.1bUS$12.4b26.7x39.9x2.1x
Fri, 12 Jan 2024US$498.7bUS$237.0bUS$12.7b25.5x39.2x2.1x
Sun, 10 Dec 2023US$488.2bUS$237.0bUS$12.7b25.7x38.4x2.1x
Tue, 07 Nov 2023US$457.0bUS$236.4bUS$7.7b22.6x59.1x1.9x
Thu, 05 Oct 2023US$480.2bUS$239.1bUS$9.6b22.7x50.1x2x
Sat, 02 Sep 2023US$506.8bUS$234.3bUS$9.2b23.7x55.2x2.2x
Mon, 31 Jul 2023US$477.1bUS$230.6bUS$8.5b21.6x56.4x2.1x
Price to Earnings Ratio

56.4x


Total Market Cap: US$477.1bTotal Earnings: US$8.5bTotal Revenue: US$230.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 38.2x202420252026
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 30.9x which is lower than its 3-year average PE of 38.2x.
  • The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 14% per year over the last three years.
  • Revenues for these companies have grown 2.7% 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-1.98%
Industrials0.90%
Professional Services-3.93%
Research and Consulting Services-2.36%
HR Services-4.92%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 36.2x.
    • Analysts are expecting annual earnings growth of 12.6%, which is higher than its past year's earnings growth of 8.8% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 104x.
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 better than its past earnings growth rate of 6.8% per year.
  • In contrast, the HR Services industry is expected to see its earnings grow by 13% 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
CACI CACI InternationalUS$480.613.8%
+US$392.3m		0.5%PE19.8x
AMTM Amentum HoldingsUS$22.016.0%
+US$303.0m		-13.0%PE36.3x
LDOS Leidos HoldingsUS$110.331.9%
+US$256.6m		-32.4%PE9.8x
PL Planet Labs PBCUS$22.361.2%
+US$96.2m		226.9%PS23.7x
BAH Booz Allen Hamilton HoldingUS$65.870.9%
+US$73.2m		-42.8%PE9.3x

Latest News

TRU
US$73.83
TransUnion
7D
-8.5%
1Y
-25.0%
BKSY
US$22.78
BlackSky Technology
7D
6.2%
1Y
11.0%
LDOS
US$110.33
Leidos Holdings
7D
1.9%
1Y
-32.4%
Narrative Update • Jul 23

LDOS: AI Logistics Partnerships Will Drive Future Repricing Debate

Leidos Holdings' analyst price target has been reset lower, with a revised fair value estimate moving from $225.00 to about $213.73 as analysts temper revenue growth and valuation expectations while modestly adjusting margin and discount rate assumptions. Analyst Commentary Recent Street research on Leidos Holdings shows a cluster of reduced price targets and rating changes ahead of upcoming earnings updates, with analysts reassessing expectations for revenue trends, healthcare exposure, and execution across key contracts.
SSNC
US$66.95
SS&C Technologies Holdings
7D
-5.1%
1Y
-22.0%
BAH
US$65.87
Booz Allen Hamilton Holding
7D
0.9%
1Y
-42.8%
BR
US$144.40
Broadridge Financial Solutions
7D
-5.7%
1Y
-42.9%
PAYX
US$110.66
Paychex
7D
-3.5%
1Y
-24.4%
Narrative Update • Jul 22

PAYX: FY27 Revenue Outlook Will Drive Downside Risk At Current P E

Analysts have nudged the Paychex fair value estimate higher from $90.00 to $95.00. This reflects updated models that incorporate refined discount rate assumptions, slightly adjusted revenue growth expectations, and a modestly higher projected profit margin and future P/E multiple based on recent price target changes and commentary around the FY27 setup, acquisition synergies, and dividend support.
EFX
US$166.72
Equifax
7D
-7.2%
1Y
-32.2%
ULS
US$86.60
UL Solutions
7D
-3.4%
1Y
22.6%
PSN
US$58.46
Parsons
7D
1.0%
1Y
-22.6%
AMTM
US$22.01
Amentum Holdings
7D
6.0%
1Y
-13.0%
CACI
US$480.61
CACI International
7D
3.8%
1Y
0.5%
ADP
US$242.88
Automatic Data Processing
7D
-5.3%
1Y
-20.7%
Seeking Alpha • Jul 15

Automatic Data Processing: The Margins Are Too High, I'll Pass

Summary Automatic Data Processing maintains dominant market share and high margins in payroll/HR, but these very margins could attract increased competition, especially as AI lowers entry barriers. AI may erode ADP's traditional moat by simplifying regulatory complexity, enabling nimble SaaS competitors and large tech firms to challenge ADP’s position and pricing power. Valuation is currently fair, but margin compression—if, say, net income margins fall from ~22% to 15%—could significantly impact ADP’s valuation and investor returns. I rate ADP a hold, urging investors to monitor margin trends and competitive dynamics, particularly those driven by AI adoption and industry shifts. Read the full article on Seeking Alpha
PL
US$22.36
Planet Labs PBC
7D
1.2%
1Y
226.9%
VRSK
US$193.17
Verisk Analytics
7D
-4.1%
1Y
-34.8%
SAIC
US$116.50
Science Applications International
7D
1.4%
1Y
1.3%
Narrative Update • Jul 06

SAIC: Contract Recompete Risks Will Test Q1 Margin Strength

Analysts have lifted the fair value estimate for Science Applications International to $96.13 from $86.80, reflecting updated views on its Q1 earnings beat, slightly lower discount rate assumptions, improved profit margin expectations, and revised P/E and revenue trajectories across a series of recent price target increases. Analyst Commentary Recent Street research on Science Applications International points to a mixed setup, with multiple firms lifting price targets after the Q1 earnings report while still flagging execution and growth risks that could limit upside.