Texas Ousts California to Become the New Home of the Fortune 500

The adage that everything is bigger in Texas appears to hold true for corporate headquarters as well. The Lone Star State has officially reclaimed the title of Fortune 500 leader, surpassing California to become the state with the most companies on the prestigious list.

According to the latest data, Texas hosts 57 Fortune 500 firms, narrowly edging out California’s 56. In terms of financial scale, the gap is equally tight: Texas-based corporations generated approximately $2.8 trillion in revenue last year, while California’s 56 businesses brought in roughly $2.7 trillion. New York holds third place with 53 companies and $2.2 trillion in revenue.

This shift follows a recent trend of corporate relocation driven by Texas’s favorable business environment, characterized by low taxes and a lighter regulatory framework. High-profile movers to the state include tech giant Tesla, healthcare distributor McKesson, and software leader Oracle. Despite leading in company count, Texas still trails California in total profits and market capitalization.

The state’s corporate landscape is diverse and geographically spread. Longstanding Fortune 500 pillars such as Dell Technologies, Exxon, and AT&T have deep roots in Texas. Houston serves as a major corporate center, hosting 25 Fortune 500 entities, including Chevron, Sysco, and Phillips 66. Dallas accounts for 11 of these firms, featuring industry leaders like AT&T and CBRE Group. Meanwhile, Austin, which has solidified its reputation as a burgeoning tech and financial center, is home to just two Fortune 500 companies: Tesla and Oracle.

Texas added three new companies to the list this year, reaching a total of 57—the highest count the state has seen since 2010. This corporate growth aligns with significant demographic expansion; the U.S. Census Bureau reports that Texas is one of the nation’s fastest-growing states, adding 391,243 residents in 2025, the largest numerical increase of any state.

Explore the rankings of Texas-based businesses for this year below. This report was originally published on Fortune.com.

Source: Yahoo News Generated at: 2026-06-03 13:36:54 UTC