--- title: "Professional Services Industry" description: "96 SEC filers are classified under the Standard Industrial Classification codes that describe the professional services industry." canonical: https://www.getswoopr.com/stocks/industries/industrials/professional-services/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Professional Services Industry ## Direct Answer 96 SEC filers are classified under the Standard Industrial Classification codes that describe the professional services industry, and their latest annual reports show $520.6 billion of combined revenue and a median operating margin of 5.1%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Professional services firms provide consulting, accounting, legal, engineering and research services to businesses and governments, billing for time or projects. People, utilization and pricing determine results. The first numbers to compare across companies here are revenue growth and utilization, billing rates and backlog. ## Key Industry Metrics - **Revenue growth and utilization**: Growth in fees billed and the share of staff hours billed to clients. Together they show whether growth comes from more work per person or from adding headcount. - **Billing rates**: Fees charged per professional per unit of time. Rising rates indicate pricing power and demand for expertise, while discounting signals competition or weak client budgets. - **Backlog**: Contracted work not yet performed or billed. For firms with short engagements it provides only near-term visibility, so it is best read with the pace of new bookings. - **Operating margin**: Operating profit as a share of revenue after compensation and overhead. In people businesses it moves with utilization, rates and pay inflation. - **Attrition**: Rate at which professionals leave the firm. High attrition raises hiring and training cost and can disrupt client relationships, while low attrition supports delivery quality and margin. ## Primary Macro Drivers - **Corporate and government spending**: Clients' discretionary and mandated budgets fund advisory, audit and legal work, so budgets drive billable hours and revenue growth. - **Regulation and compliance needs**: New rules create demand for audit, legal and risk work, supporting recurring revenue and backlog. - **Technology change**: Digital and AI adoption creates new project demand but can also automate routine work, changing mix and billing rates. - **Talent availability**: Revenue is limited by qualified staff, so hiring, pay and attrition set capacity and utilization. ## Major Risks - **Cyclical budgets**: Clients trim discretionary projects in downturns, lowering utilization and backlog; watch bookings and billing rate trends. - **Talent costs**: Competition for staff lifts pay and attrition, squeezing margin when rates lag; watch utilization and compensation ratio. - **Competition**: Rival firms and technology tools can pressure fees and win rates, lowering billing rates; watch pricing commentary. - **Litigation**: Errors in audit, legal or advisory work can cause claims, settlements and reputational damage; watch legal reserves and insurance disclosures. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Low | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## Professional Services Filers in the SEC Record 96 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 7363, 8742, 8741, 7389. Their latest fiscal years end between 2024 and 2026, and together they reported $520.6 billion of revenue. Median revenue growth over the prior year was 4.0%. Median operating margin was 5.1% and median net margin 3.2%. Median total liabilities were 60% of total assets, and 61 of 96 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Accenture Plc](https://www.getswoopr.com/stocks/companies/accenture/) | $69.7 billion | 7.4% | 14.7% | 11.0% | FY 2025 | | [Pdd Holdings Inc.](https://www.getswoopr.com/stocks/companies/pdd-holdings/) | $61.8 billion | 14.5% | 21.6% | 22.7% | FY 2025 | | [Uber Technologies, Inc](https://www.getswoopr.com/stocks/companies/uber/) | $52.0 billion | 18.3% | 10.7% | 19.3% | FY 2025 | | [Visa Inc.](https://www.getswoopr.com/stocks/companies/visa-inc/) | $40.0 billion | 11.3% | 60.0% | 50.1% | FY 2025 | | [Paypal Holdings, Inc.](https://www.getswoopr.com/stocks/companies/paypal/) | $33.2 billion | 4.3% | 18.3% | 15.8% | FY 2025 | | [Mastercard Inc](https://www.getswoopr.com/stocks/companies/mastercard/) | $32.8 billion | 16.4% | 57.6% | 45.6% | FY 2025 | | [Mercadolibre Inc](https://www.getswoopr.com/stocks/companies/mercadolibre/) | $28.9 billion | 39.1% | 11.1% | 6.9% | FY 2025 | | [Fiserv Inc](https://www.getswoopr.com/stocks/companies/fiserv/) | $21.2 billion | 3.6% | 27.5% | 16.4% | FY 2025 | The 8 largest of 96 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Professional Services guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Industrials - [Industrials sector overview](https://www.getswoopr.com/stocks/industries/industrials/) - [Professional Staffing](https://www.getswoopr.com/stocks/industries/industrials/professional-staffing/) - [Product Tankers](https://www.getswoopr.com/stocks/industries/industrials/product-tankers/) - [Pumps & Compressors](https://www.getswoopr.com/stocks/industries/industrials/pumps-and-compressors/) - [Power Distribution Equipment](https://www.getswoopr.com/stocks/industries/industrials/power-distribution-equipment/) - [Rail Infrastructure Construction](https://www.getswoopr.com/stocks/industries/industrials/rail-infrastructure-construction/) - [Port Operators](https://www.getswoopr.com/stocks/industries/industrials/port-operators/) - [Rail Infrastructure Operators](https://www.getswoopr.com/stocks/industries/industrials/rail-infrastructure-operators/) - [Plumbing Products](https://www.getswoopr.com/stocks/industries/industrials/plumbing-products/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Professional Services industry? Key performance indicators for the Professional Services industry include: Revenue growth and utilization, Billing rates, Backlog, Operating margin, Attrition. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Professional Services industry? The Professional Services industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the Professional Services industry? The primary risks for Professional Services companies include: Cyclical budgets, Talent costs, Competition, Litigation. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).