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U.S. Professional Services Industry Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies149
  • 7D3.7%
  • 3M-10.7%
  • 1Y-20.4%
  • YTD-11.3%

In the last week, the Professional Services industry is up 3.7%, with UL Solutions up 20%. During this same period, the Alight underperformed, falling 40%. In contrast, the industry has lost 20% in the last 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
Fri, 20 Feb 2026US$395.5bUS$245.7bUS$12.5b19.9x31.7x1.6x
Sun, 18 Jan 2026US$480.4bUS$251.7bUS$12.3b24.6x39x1.9x
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
Price to Earnings Ratio

88.9x


Total Market Cap: US$256.3bTotal Earnings: US$2.9bTotal Revenue: US$163.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 41.2x202420252026
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 31.7x which is lower than its 3-year average PE of 41.2x.
  • The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 63% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market0.64%
Industrials2.24%
Professional Services3.72%
Research and Consulting Services6.44%
HR Services1.30%
Industry PE
  • Investors are most optimistic about the HR Services industry, which is trading close to its 3-year average PE ratio of 35.5x.
    • Analysts are expecting annual earnings growth of 11.5%, which is higher than its past year's earnings growth of 6.1% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 147x.
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 8.6% per year.
  • In contrast, the HR Services industry is expected to see its earnings grow by 11% 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
ULS UL SolutionsUS$82.6419.8%
+US$2.9b		53.0%PE52x
ADP Automatic Data ProcessingUS$215.972.9%
+US$2.4b		-30.8%PE20.5x
PL Planet Labs PBCUS$25.1117.9%
+US$1.3b		360.7%PS30.3x
TRU TransUnionUS$76.127.5%
+US$1.0b		-19.4%PE32.2x
J Jacobs SolutionsUS$139.315.9%
+US$914.9m		7.1%PE35.6x

Latest News

NSP
US$25.19
Insperity
7D
-2.8%
1Y
-70.9%
FVRR
US$11.32
Fiverr International
7D
-18.0%
1Y
-59.4%
ALIT
US$0.81
Alight
7D
-39.6%
1Y
-88.3%
ULS
US$82.64
UL Solutions
7D
19.8%
1Y
53.0%
FA
US$9.60
First Advantage
7D
-8.6%
1Y
-48.8%

FA: Stable Assumptions And Higher Future P/E Will Support Earnings Upside

Analysts have adjusted their price target for First Advantage to $17.57, with the change reflecting updated assumptions for the discount rate and future P/E, while keeping fair value, revenue growth, and profit margin estimates broadly consistent with prior views. Valuation Changes Fair Value: Model fair value remains at $17.57, with no change from the prior estimate.
CACI
US$591.20
CACI International
7D
5.3%
1Y
73.0%

CACI: Raised FY26 Outlook And Backlog Wins Will Support Repricing

Analysts lifted their price target on CACI International by $85 to $670, citing updated assumptions around revenue growth, profit margins, and a higher future P/E multiple, as reflected in recent research from firms raising their targets on the stock. Analyst Commentary Recent Street research around CACI International has featured several price target revisions, with a cluster of updates centered on new assumptions for revenue growth, profitability, and valuation multiples.
BZ
US$17.21
Kanzhun
7D
-2.3%
1Y
10.0%

BZ: Leadership Transition And Profitability Outlook Will Support Bullish View On Shares

Analysts have nudged their fair value estimate for Kanzhun slightly higher to $29.02 from $28.69, citing updated assumptions around revenue growth, profit margins, and a modestly lower future P/E multiple. What's in the News Kanzhun Limited announced that Mr. Phil Yu Zhang will step down as Chief Financial Officer, effective December 11, 2025, marking a planned transition in the finance leadership team (Key Developments).
PL
US$25.11
Planet Labs PBC
7D
17.9%
1Y
360.7%

PL: New Defense Contracts And Expanded Satellite Constellation Will Support Future Earnings Power

Analysts have maintained their $33.00 price target for Planet Labs PBC, citing largely stable assumptions around fair value, discount rate, revenue growth, profit margin and future P/E expectations. What's in the News Signed a multi-year low 9-figure agreement with the Swedish Armed Forces for a suite of satellites, space-based data, and awareness solutions, with Sweden set to own the satellites and access Planet's high resolution data and intelligence tools (Client Announcements).
J
US$139.31
Jacobs Solutions
7D
5.9%
1Y
7.1%
FC
US$16.18
Franklin Covey
7D
-10.4%
1Y
-52.2%

FC: Buybacks And 2026 Guidance Will Support Stronger Earnings Power

Analysts have kept their $22.00 price target for Franklin Covey unchanged. They explain that slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E still support the same overall valuation view.
TRU
US$76.12
TransUnion
7D
7.5%
1Y
-19.4%

AI And Data Monetization Will Shape A Stable Long Term Outlook

Catalysts About TransUnion TransUnion provides credit, fraud, marketing and consumer data solutions that help lenders and businesses make risk and customer decisions. What are the underlying business or industry changes driving this perspective?
EFX
US$195.30
Equifax
7D
3.8%
1Y
-19.0%
PAYX
US$92.34
Paychex
7D
-0.1%
1Y
-38.5%

PAYX: AI And Buybacks Will Support Resilient Future Cash Flow Profile

Analysts have trimmed their average Paychex price target slightly to about $119.53 from roughly $120.20, reflecting a modestly lower assumed future P/E and fresh bearish initiation commentary that characterizes the recent Paycor acquisition as a largely defensive move. Analyst Commentary Recent commentary focuses heavily on the Paycor acquisition and how it feeds into expectations for Paychex valuation and execution.
BR
US$176.21
Broadridge Financial Solutions
7D
3.4%
1Y
-25.4%

BR: AI Partnerships And Tokenization Efforts Will Drive Future Upside Potential

Analysts have adjusted their price target for Broadridge Financial Solutions to $245.88 from $267.88, reflecting updated views on discount rate assumptions, long term revenue growth, profit margin potential, and a lower future P/E multiple. What's in the News Completed a long running share repurchase program, with a total of 22,989,816 shares bought back for US$2,177.86 million under the authorization announced on April 30, 2013 (company announcement).
ADP
US$215.97
Automatic Data Processing
7D
2.9%
1Y
-30.8%

ADP: Dividend Power And HR Platform Execution Will Support Premium P/E

Analysts have trimmed their average price target on Automatic Data Processing by about $10, reflecting slightly more cautious assumptions on revenue growth, profit margins and future P/E multiples after a series of target cuts from major research firms, alongside one fresh bullish initiation. Analyst Commentary Recent research on Automatic Data Processing shows a cluster of target cuts alongside one new, more optimistic initiation.
CLVT
US$1.78
Clarivate
7D
-3.3%
1Y
-63.2%

CLVT: Extended Value Creation Plan Timeline May Support Future Upside Potential

Analysts have trimmed their price target on Clarivate to about US$3.60 from roughly US$4.20, citing a longer timeline for the company's "Value Creation Plan" to influence organic revenue growth, as well as concerns about pressure from AI driven competitors and limited pricing power. Analyst Commentary Bullish Takeaways Bullish analysts still see some value support around the revised US$3.60 target, suggesting expectations have been reset to reflect slower organic growth execution.