Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Professional Services Industry Analysis

UpdatedMay 16, 2026
DataAggregated Company Financials
Companies149
  • 7D-3.2%
  • 3M-4.9%
  • 1Y-27.4%
  • YTD-17.0%

Over the last 7 days, the Professional Services industry has dropped 3.9%, driven by Equifax declining 9.9%. In contrast, Planet Labs PBC has gained 6.6%. The industry has fallen 28% in the last year. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 May 2026US$361.1bUS$247.8bUS$12.1b18.1x29.8x1.5x
Mon, 13 Apr 2026US$359.3bUS$245.7bUS$11.6b18.2x31.1x1.5x
Wed, 11 Mar 2026US$406.2bUS$246.0bUS$11.8b20x34.4x1.7x
Fri, 06 Feb 2026US$421.2bUS$250.7bUS$12.8b21.5x32.9x1.7x
Sun, 04 Jan 2026US$462.3bUS$251.6bUS$13.8b24x33.4x1.8x
Tue, 02 Dec 2025US$466.2bUS$251.9bUS$13.9b24.2x33.6x1.9x
Thu, 30 Oct 2025US$484.8bUS$250.5bUS$14.7b25.3x33.1x1.9x
Sat, 27 Sep 2025US$498.8bUS$251.1bUS$15.0b26.1x33.3x2x
Mon, 25 Aug 2025US$527.2bUS$253.9bUS$14.7b26.5x35.9x2.1x
Wed, 23 Jul 2025US$501.9bUS$245.1bUS$14.8b23.7x33.9x2x
Fri, 20 Jun 2025US$494.9bUS$244.8bUS$15.0b22.5x33x2x
Sun, 18 May 2025US$521.5bUS$244.5bUS$15.0b23.5x34.9x2.1x
Tue, 15 Apr 2025US$479.7bUS$241.7bUS$14.8b21.1x32.4x2x
Thu, 13 Mar 2025US$481.7bUS$241.7bUS$14.7b20.3x32.8x2x
Sat, 08 Feb 2025US$565.5bUS$249.1bUS$14.9b23.9x37.8x2.3x
Mon, 06 Jan 2025US$551.2bUS$246.0bUS$14.8b24.4x37.1x2.2x
Wed, 04 Dec 2024US$580.8bUS$242.2bUS$15.2b25.5x38.3x2.4x
Fri, 01 Nov 2024US$568.4bUS$248.5bUS$14.8b27.2x38.3x2.3x
Sun, 29 Sep 2024US$542.9bUS$235.5bUS$12.6b28.3x43x2.3x
Tue, 27 Aug 2024US$537.7bUS$234.8bUS$12.8b27.7x41.9x2.3x
Thu, 25 Jul 2024US$521.6bUS$237.6bUS$12.5b26.6x41.8x2.2x
Sat, 22 Jun 2024US$497.2bUS$237.8bUS$12.4b24.8x40x2.1x
Mon, 20 May 2024US$514.0bUS$238.4bUS$12.3b25.8x41.9x2.2x
Wed, 17 Apr 2024US$491.9bUS$236.4bUS$11.5b26.3x42.8x2.1x
Fri, 15 Mar 2024US$503.1bUS$233.1bUS$11.5b25.9x43.9x2.2x
Sun, 11 Feb 2024US$501.0bUS$231.7bUS$12.4b27.1x40.4x2.2x
Tue, 09 Jan 2024US$492.8bUS$237.0bUS$12.7b24.6x38.7x2.1x
Thu, 07 Dec 2023US$490.5bUS$236.9bUS$12.7b25.6x38.6x2.1x
Sat, 04 Nov 2023US$457.2bUS$236.4bUS$7.7b22.5x59.1x1.9x
Mon, 02 Oct 2023US$476.5bUS$234.4bUS$9.5b23x50.4x2x
Wed, 30 Aug 2023US$504.2bUS$234.3bUS$9.2b23.7x54.9x2.2x
Fri, 28 Jul 2023US$480.9bUS$229.9bUS$8.9b21.7x54.2x2.1x
Sun, 25 Jun 2023US$475.5bUS$231.8bUS$9.5b21.9x49.9x2.1x
Tue, 23 May 2023US$466.4bUS$231.6bUS$9.6b21.2x48.4x2x
Price to Earnings Ratio

48.4x


Total Market Cap: US$466.4bTotal Earnings: US$9.6bTotal Revenue: US$231.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 39.4x202420252026
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 29.7x which is lower than its 3-year average PE of 39.4x.
  • 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 8.2% per year over the last three years.
  • Revenues for these companies have grown 2.4% 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-0.92%
Industrials-1.38%
Professional Services-3.21%
HR Services-1.07%
Research and Consulting Services-4.19%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 36.0x.
    • Analysts are expecting annual earnings growth of 12.4%, which is higher than its past year's earnings growth of 1.4% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 139x.
Forecasted Growth
  • Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is better than its past earnings growth rate of 3.9% 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
PL Planet Labs PBCUS$41.626.6%
+US$919.5m		959.0%PS48.2x
ADP Automatic Data ProcessingUS$214.480.7%
+US$593.6m		-32.8%PE19.7x
INOD InnodataUS$96.1013.2%
+US$366.1m		161.6%PE79.9x
CACI CACI InternationalUS$486.961.2%
+US$131.9m		1.6%PE20x
PSN ParsonsUS$50.382.4%
+US$128.4m		-27.0%PE23.7x

Latest News

BZ
US$14.07
Kanzhun
7D
0.4%
1Y
-22.9%
PL
US$41.62
Planet Labs PBC
7D
6.6%
1Y
959.0%
TRU
US$66.26
TransUnion
7D
-8.0%
1Y
-27.9%
FCN
US$143.76
FTI Consulting
7D
-12.3%
1Y
-13.8%
SPIR
US$20.01
Spire Global
7D
8.2%
1Y
66.8%
Narrative Update • May 15

SPIR: Future Returns Will Depend On On Orbit Data Demand Execution

Spire Global's analyst price target has been raised from $17.60 to $20.38 as analysts factor in updated long term revenue assumptions, reiteration of 2026 expectations, and a larger opportunity in on orbit data and microwave sounding capabilities. Analyst Commentary Recent research updates cluster around higher price targets and refreshed revenue frameworks for Spire Global, with Q1 results and 2026 guidance acting as key reference points.
PSN
US$50.38
Parsons
7D
2.4%
1Y
-27.0%
VRSK
US$162.55
Verisk Analytics
7D
-5.4%
1Y
-47.5%
Narrative Update • May 14

VRSK: Proprietary Insurance Data Will Underpin Future AI Disruption Reassessment

Analysts trimmed their average price target on Verisk Analytics by about $1 to $222, reflecting updated views on a slightly lower future P/E multiple. They still cited resilient revenue, margin strength, and the company’s proprietary insurance data and embedded workflows as key supports for the long-term model.
CACI
US$486.96
CACI International
7D
1.2%
1Y
1.6%
PAYX
US$91.54
Paychex
7D
-2.5%
1Y
-41.3%
Seeking Alpha • May 13

Paychex: Giving Credit Where It's Due (Rating Upgrade)

Summary Paychex, Inc. delivered strong Q3 results, but organic growth in its core Management Solutions segment was only ~4% after stripping out Paycor acquisition effects. PAYX’s PEO and Insurance business remains sticky with high retention, yet the core payroll segment faces structural AI commoditization risk that limits valuation upside. Despite $1.5B in YTD capital returns and a 4.76% dividend yield, the stock’s 15.85x forward earnings multiple is not justified by modest organic growth and looming AI risks. I maintain a Sell rating, viewing $70–$75 as a more appropriate entry given the business’s structural realities and risk profile. Click for this PAYX update. Read the full article on Seeking Alpha
LDOS
US$123.69
Leidos Holdings
7D
-4.9%
1Y
-22.2%
EFX
US$158.37
Equifax
7D
-9.9%
1Y
-43.2%
J
US$110.51
Jacobs Solutions
7D
-6.7%
1Y
-14.4%
ADP
US$214.48
Automatic Data Processing
7D
0.7%
1Y
-32.8%
Narrative Update • May 10

ADP: Dividend Strength And AI Agents Will Support Repriced Earnings Potential

Analysts recently trimmed the implied fair value for Automatic Data Processing by about $10 to $246.73. This reflects a series of lower price targets that factor in more moderate revenue growth assumptions, slightly higher profit margins and a reduced future P/E multiple.
INOD
US$96.10
Innodata
7D
13.2%
1Y
161.6%
New Narrative • May 08

Innodata Inc. (INOD): Powering Smart Data for Generative AI and the Inflection Point in High-Complexity LLM Engineering

Innodata Inc. (INOD), a leading data engineering provider for the world’s largest technology companies, reported its Q1 fiscal 2026 earnings on May 7, 2026 , delivering a performance that signaled its total transformation into a mission-critical AI utility [1, 2].
WLDN
US$92.12
Willdan Group
7D
4.2%
1Y
89.4%
Seeking Alpha • May 08

Willdan Looks Mispriced After Raising Guidance

Summary Willdan delivered a strong Q1 beat, raised EPS guidance by 8%, and continues to outpace peers in both revenue and earnings growth. WLDN's business is anchored in energy consulting, with robust organic and inorganic growth, highlighted by the accretive Burton Energy Group acquisition. Despite superior growth and EBITDA margins, WLDN trades at a significant discount to peers, presenting a 41% upside to a $107/share target. Risks include reliance on state/local government spending, utility capex cycles, and potential AI-driven competition in a fragmented market. Read the full article on Seeking Alpha
SSNC
US$64.58
SS&C Technologies Holdings
7D
-6.1%
1Y
-18.9%