Professional services growth slips to 9.9%
- Hinge Marketing said January 13 its 2026 High Growth Study found median professional-services firm growth fell to 9.9%, the weakest pace since 2018. - The study tracked 495 firms with nearly $85 billion in combined revenue, and said median growth is down 30% from 14%. - Private equity buyers are chasing fewer quality assets in a tighter market. (pwc.com)
Professional-services firms are growing more slowly this year, with median growth down to 9.9%, the lowest level Hinge Marketing has recorded since 2018. (hingemarketing.com) Hinge released that finding on January 13 in its 2026 High Growth Study, which surveyed 495 firms representing almost $85 billion in combined revenue across six continents. (hingemarketing.com 1) (hingemarketing.com 2) The drop is steep relative to the post-pandemic peak: Hinge said median growth was 14% two years earlier, so the new 9.9% figure marks a 30% decline. (hingemarketing.com) Professional services means firms that sell expertise rather than products: accountants, consultants, law firms, engineers, and other advisory businesses that bill for specialized work. (hingemarketing.com) The slowdown is arriving as artificial intelligence shifts from a talking point to an operating issue inside firms and inside their clients’ buying decisions. Hinge said AI is now a “real operational disruptor” for the sector. (hingemarketing.com) That pressure is showing up in the wider consulting market. Source Global Research said client confidence in the United States is at a five-year high for 2026, but spending is concentrating in technology, business-model, and growth work rather than broad-based discretionary projects. (sourceglobalresearch.com 1) (sourceglobalresearch.com 2) Private equity is adding another squeeze in the middle market. PwC said more sponsors are chasing fewer high-quality assets, while PitchBook said 2025 middle-market deal value rose 8.5% to $410.7 billion across an estimated 4,018 transactions. (pwc.com) (pitchbook.com) GF Data’s year-end report described choppy conditions in lower middle-market dealmaking, with participating firms reporting 297 completed transactions in 2025, down 23% from 2024 and 41% below the 2021 peak. (gfdata.com) In that market, firms selling advice are under pressure to sell execution too. KPMG said companies are turning to managed services to “bridge the gap between innovation and execution” in artificial intelligence programs. (kpmg.com) Thomson Reuters found a similar shift inside professional services, saying clients want outside firms to use AI but many organizations still struggle to measure returns and align those goals with buyers. (thomsonreuters.com) Hinge’s report says the firms still outgrowing the market are using research, technology, and marketing more systematically than peers. In a slower market, that leaves less room for generic advisory work and more pressure to prove results. (hingemarketing.com 1) (hingemarketing.com 2)
