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U.S. Professional Services Industry Analysis

UpdatedJan 07, 2026
DataAggregated Company Financials
Companies152
  • 7D1.1%
  • 3M-5.5%
  • 1Y-4.5%
  • YTD3.1%

Over the last 7 days, the Professional Services industry has remained flat, although notably Leidos Holdings gained 6.6%. Unfortunately though, the industry is down 4.8% over the past 12 months. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 28 Jun 2023US$484.3bUS$231.9bUS$9.5b21.9x51x2.1x
Fri, 26 May 2023US$459.2bUS$231.6bUS$9.6b20.9x47.7x2x
Sun, 23 Apr 2023US$458.8bUS$227.7bUS$10.5b22.4x43.7x2x
Tue, 21 Mar 2023US$449.5bUS$228.4bUS$10.7b22.7x42.1x2x
Thu, 16 Feb 2023US$267.2bUS$163.0bUS$3.0b21.8x87.7x1.6x
Sat, 14 Jan 2023US$263.6bUS$161.9bUS$3.5b21.5x75.2x1.6x
Price to Earnings Ratio

75.2x


Total Market Cap: US$263.6bTotal Earnings: US$3.5bTotal Revenue: US$161.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Professional Services Industry Price to Earnings3Y Average 43x202420252026
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 34.4x which is lower than its 3-year average PE of 43.1x.
  • The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
  • The earnings for companies in the Professional Services industry have grown 58% per year over the last three years.
  • Revenues for these companies have grown 16% 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 Market1.04%
Industrials4.05%
Professional Services1.15%
Research and Consulting Services2.96%
HR Services-0.066%
Industry PE
  • Investors are most optimistic about the HR Services industry which is trading above its 3-year average PE ratio of 35.0x.
    • Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings decline of 1.0% per year.
  • Investors are most pessimistic about the Research and Consulting Services industry, which is trading below its 3-year average of 152x.
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 12% per year.
  • In contrast, the HR Services industry is expected to see its earnings grow by 16% 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
LDOS Leidos HoldingsUS$197.507.7%
+US$1.8b		34.1%PE18x
ULS UL SolutionsUS$84.525.3%
+US$901.0m		69.0%PE53.2x
PL Planet Labs PBCUS$21.8410.6%
+US$658.7m		431.4%PS24.3x
ADP Automatic Data ProcessingUS$261.120.6%
+US$643.1m		-9.5%PE25.5x
BAH Booz Allen Hamilton HoldingUS$90.045.7%
+US$593.2m		-30.3%PE13.3x

Latest News

TRU
US$82.72
TransUnion
7D
-4.9%
1Y
-8.3%
CACI
US$559.44
CACI International
7D
3.8%
1Y
35.1%
BAH
US$90.04
Booz Allen Hamilton Holding
7D
5.7%
1Y
-30.3%
BR
US$221.70
Broadridge Financial Solutions
7D
-1.6%
1Y
-2.0%
ADP
US$261.12
Automatic Data Processing
7D
0.6%
1Y
-9.5%
PL
US$21.84
Planet Labs PBC
7D
10.6%
1Y
431.4%

PL: Expanded Imaging Constellation And Defense Contracts Will Support Measured Long Term Earnings Power

Analysts have modestly reduced their price target on Planet Labs PBC by approximately 2 dollars per share, reflecting slightly lower long term valuation multiples even as forecasts for revenue growth and profit margins have inched higher. What's in the News Issued fourth quarter 2026 revenue guidance of approximately 76 million to 80 million dollars and full fiscal 2026 guidance of 297 million to 301 million dollars, indicating continued top line expansion (corporate guidance) Successfully launched AI enabled high resolution Pelican 5 and Pelican 6 satellites along with 36 SuperDoves on SpaceX's Transporter 15 mission, expanding the Gen 1 Pelican fleet and daily monitoring constellation (product announcement) Released first light images from the newly launched Pelican 6 satellite, demonstrating early performance of its high resolution, multispectral imaging and on orbit edge compute capabilities (product announcement) Secured an 8 figure contract renewal with a longstanding international defense and intelligence customer for high resolution imagery, reinforcing growth in the defense and national security segment (client announcement) Awarded new US government contracts, including a 12.8 million dollar NGA AAMOR award and a 7.5 million dollar renewal with the US Navy for AI enabled maritime domain awareness and vessel monitoring across the Pacific (client announcements) Valuation Changes Fair Value Estimate unchanged at 22.0 dollars per share, indicating no revision to the long term intrinsic value assessment Discount Rate edged down slightly from 7.30 percent to approximately 7.27 percent, modestly lowering the hurdle rate applied to future cash flows Revenue Growth increased slightly from about 26.7 percent to 27.1 percent, reflecting a marginally more optimistic outlook on top line expansion Net Profit Margin nudged higher from roughly 7.37 percent to 7.42 percent, signaling a small improvement in expected long term profitability Future P/E decreased modestly from about 224.8 times to 220.7 times, implying slightly lower valuation multiples despite stronger growth and margin assumptions
PAYC
US$156.55
Paycom Software
7D
-2.5%
1Y
-22.5%

PAYC: AI Automation Will Support Durable Margins Amid Moderating Subscription Momentum

Analysts have trimmed their fair value estimate for Paycom Software slightly to approximately $208.71 from about $209.94 per share, citing a weaker employment backdrop, more cautious management guidance, and expectations for high single digit subscription revenue growth rather than the stronger historical trajectory. Analyst Commentary Recent Street research reflects a more tempered stance on Paycom Software, with multiple firms reducing price targets while generally maintaining neutral or hold level ratings.
VRSK
US$221.23
Verisk Analytics
7D
-1.4%
1Y
-19.1%

VRSK: Upcoming Guidance And AI Spend Will Drive Renewed Bullish Repricing

Analysts have modestly reduced Verisk Analytics' fair value estimate by about $1 to roughly $250 per share. This reflects a more cautious blend of recent target cuts and rating downgrades that highlight valuation concerns, acquisition related leverage, and near term growth headwinds, despite still solid long term fundamentals.
EFX
US$212.25
Equifax
7D
-3.9%
1Y
-13.5%

EFX: High Entry Barriers Will Support Future Outperformance Amid Mortgage Licensing Shift

Analysts have nudged their average price target for Equifax slightly lower, trimming fair value by approximately $0.50 to around $266.75 as they factor in modestly higher long term revenue growth and durable high quality assets, but also incremental earnings pressure and potential headwinds from FICO's new Mortgage Direct License Program. Analyst Commentary Analysts remain divided on Equifax, with views shaped by the competitive implications of FICO's Mortgage Direct License Program and the durability of Equifax's core data assets.
PAYX
US$111.22
Paychex
7D
-1.9%
1Y
-20.1%

PAYX: AI And Suite Expansion Will Navigate Cyclical Labor Uncertainty Ahead

Analysts have modestly reduced their Paychex fair value estimate by about $6 to roughly $122 per share, reflecting tempered expectations for revenue growth and future valuation multiples, despite resilient margins and a broader solution suite. Analyst Commentary Street research on Paychex reflects a generally balanced stance, with most firms maintaining neutral or modestly cautious ratings while making incremental target price adjustments.
ULS
US$84.52
UL Solutions
7D
5.3%
1Y
69.0%

ULS: Index Inclusion And AI Safety Services Will Support Long Term Upside

Analysts have nudged their price target for UL Solutions slightly higher to approximately 91.71 dollars, citing marginal improvements in long term discount rate assumptions and continued expectations for steady revenue growth and profit margins. What's in the News UL Solutions completed a 975 million dollar follow on offering of 12.5 million Class A shares at 78 dollars per share, with UBS Securities added as a co lead underwriter (Follow on Equity Offering, Underwriter Change).
AMTM
US$31.53
Amentum Holdings
7D
7.6%
1Y
42.7%
J
US$137.67
Jacobs Solutions
7D
2.8%
1Y
4.4%
LDOS
US$197.50
Leidos Holdings
7D
7.7%
1Y
34.1%

LDOS: Strong Health And Civil Margins Will Support Future Premium Multiple

Analysts have raised their price target on Leidos Holdings to approximately $218.08 per share from about $218.08. This reflects slightly stronger expectations for revenue growth and sustained margins, supported by robust book to bill trends, a sizable near term pipeline, and upside earnings performance with higher profitability guidance into 2025.
BZ
US$19.95
Kanzhun
7D
-2.4%
1Y
47.5%

BZ: Future Cash Flow Resilience Will Drive Continued Share Upside

Analysts have nudged their price target for Kanzhun slightly higher to approximately $25.98 per share, up from about $25.93. This adjustment reflects modestly stronger expectations for long term revenue growth and a marginally lower discount rate, which more than offset a minor trim to projected profit margins.
FBYD
US$14.04
Falcon's Beyond Global
7D
-13.8%
1Y
105.3%

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