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U.S. Professional Services Industry Analysis

UpdatedJun 17, 2026
DataAggregated Company Financials
Companies149
  • 7D-2.8%
  • 3M-1.1%
  • 1Y-22.5%
  • YTD-15.2%

Over the last 7 days, the Professional Services industry has dropped 2.6%, driven by Automatic Data Processing declining 3.9%. Meanwhile, Innodata actually outperformed within the industry, gaining 7.5% in the last week. However, the industry is down 23% over the past 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
Wed, 17 Jun 2026US$372.0bUS$247.6bUS$12.1b18.9x30.7x1.5x
Fri, 15 May 2026US$361.7bUS$249.1bUS$12.2b18.4x29.7x1.5x
Sun, 12 Apr 2026US$359.3bUS$245.7bUS$11.6b18.2x31.1x1.5x
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
Price to Earnings Ratio

50x


Total Market Cap: US$475.5bTotal Earnings: US$9.5bTotal Revenue: US$231.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 38.9x202420252026
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 31.1x which is lower than its 3-year average PE of 38.9x.
  • 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 8.4% per year over the last three years.
  • Revenues for these companies have grown 2.2% 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 Market2.32%
Industrials2.32%
Professional Services-2.82%
HR Services-2.71%
Research and Consulting Services-3.07%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 36.1x.
    • Analysts are expecting annual earnings growth of 12.8%, 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 129x.
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 7.6% 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
INOD InnodataUS$107.427.5%
+US$245.9m		131.9%PE89.3x
RHI Robert HalfUS$32.345.3%
+US$164.9m		-23.4%PE25.1x
FA First AdvantageUS$16.715.5%
+US$149.2m		-3.1%PE335.7x
EXPO ExponentUS$57.343.6%
+US$95.6m		-23.6%PE25.5x
MAN ManpowerGroupUS$34.214.8%
+US$72.6m		-14.3%PS0.09x

Latest News

LDOS
US$113.58
Leidos Holdings
7D
-8.0%
1Y
-24.0%
Analysis Article • 6h

Leidos Holdings (LDOS) Stock Could Be 38% Undervalued After Downgrade And DHA Contract Pressure

Leidos Holdings (LDOS) is back in focus after a Jefferies downgrade and fresh concerns about profit margins and U.S. defense budgets, along with additional pressure from changes to a key Defense Health Agency contract. See our latest analysis for Leidos Holdings. Leidos Holdings has come under pressure, with the share price down 31.9% over the past 90 days and the 1 year total shareholder return declining 23.2%, although the 3 year total shareholder return of 38.0% still reflects earlier...
INOD
US$107.42
Innodata
7D
7.5%
1Y
131.9%
BR
US$143.88
Broadridge Financial Solutions
7D
-4.1%
1Y
-39.7%
FA
US$16.71
First Advantage
7D
5.5%
1Y
-3.1%
Analysis Article • 16h

First Advantage (FA) Stock Could Be 6% Undervalued After S&P SmallCap 600 Addition

First Advantage (FA) drew fresh attention after being selected for inclusion in the S&P SmallCap 600, replacing Kennedy-Wilson Holdings. The announcement coincided with a nearly 6% one-day move in the share price. See our latest analysis for First Advantage. Beyond the index news, First Advantage has already seen strong momentum, with a 90 day share price return of 59.08% and a 30 day share price return of 14.26%. The 1 year total shareholder return sits at a decline of 4.92%, and the 3 year...
VRRM
US$5.02
Verra Mobility
7D
8.9%
1Y
-79.1%
PL
US$28.21
Planet Labs PBC
7D
-9.5%
1Y
453.1%
Narrative Update • Jun 15

PL: Defense And Intelligence Contracts Will Drive Future Cash Flow Upside

Analysts have adjusted their price target on Planet Labs PBC to $40.00 from $36.33, reflecting updated assumptions on discount rate, revenue growth, profit margin and a very large forward P/E multiple of about 386x. What's in the News Record Q1 FY2027 revenue of US$94.2 million, up 42% year over year, driven largely by more than 65% growth in defense and intelligence contracts with agencies such as the U.S. National Geospatial Intelligence Agency and Navy, plus international customers in Greece and Sweden (source: multiple Q1 FY2027 earnings reports).
LZ
US$6.00
LegalZoom.com
7D
7.0%
1Y
-30.0%
ULS
US$95.33
UL Solutions
7D
-3.3%
1Y
35.0%
PCTY
US$104.31
Paylocity Holding
7D
-7.8%
1Y
-41.1%
BAH
US$73.98
Booz Allen Hamilton Holding
7D
-6.3%
1Y
-27.6%
MAN
US$34.21
ManpowerGroup
7D
4.8%
1Y
-14.3%
CACI
US$504.42
CACI International
7D
-3.9%
1Y
10.0%
EXPO
US$57.34
Exponent
7D
3.6%
1Y
-23.6%
Narrative Update • Jun 07

EXPO: Resilient End Markets And Buybacks Will Support Future Earnings Quality

Analysts have reduced their price target on Exponent to $80 from $95, citing a preference for stocks with more resilient end markets and clearer growth drivers in the current small-cap industrials group. Analyst Commentary Recent research highlights that while the price target on Exponent has been adjusted to US$80 from US$95, the stock still sits on the preferred list within the smaller cap industrials group.
ADP
US$222.00
Automatic Data Processing
7D
-3.9%
1Y
-27.6%
Narrative Update • Jun 06

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

Analysts have nudged the Automatic Data Processing fair value estimate slightly lower to about $246.33, reflecting updated assumptions for discount rate, revenue growth, margins, and a lower future P/E multiple after a recent mix of reduced price targets and at least one rating upgrade. This frames the current risk/reward as more balanced.
RHI
US$32.34
Robert Half
7D
5.3%
1Y
-23.4%
Narrative Update • Jun 02

RHI: Limited AI Disruption And Earnings Resilience Will Support Future Share Recovery

Analysts have adjusted their price targets for Robert Half to $25 from $36, pointing to updated assumptions around discount rate, revenue growth, profit margin and future P/E, and citing views on the company's "low-to-no AI disruption exposure" relative to information services peers. Analyst Commentary Bullish analysts have highlighted that Robert Half's limited AI disruption risk, compared with some information services peers, could support a more resilient earnings profile and help justify current valuation assumptions around future P/E.
FBYD
US$15.74
Falcon's Beyond Global
7D
9.8%
1Y
170.4%