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U.S. Communications Industry Analysis

UpdatedAug 09, 2026
DataAggregated Company Financials
Companies77
  • 7D6.3%
  • 3M12.5%
  • 1Y64.1%
  • YTD51.4%

In the last week, the Communications industry is up 6.3%, with Cisco Systems up 4.7%. During this same period, the Extreme Networks underperformed, falling 20%. In the last 12 months, the industry was up 64%. Earnings are forecast to grow by 21% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 09 Aug 2026US$1.0tUS$116.9bUS$20.9b34.6x49.6x8.9x
Tue, 07 Jul 2026US$945.8bUS$115.3bUS$20.6b32.4x45.9x8.2x
Thu, 04 Jun 2026US$1.1tUS$114.9bUS$20.4b33.1x53.6x9.5x
Sat, 02 May 2026US$934.5bUS$111.5bUS$18.5b35.4x50.4x8.4x
Mon, 30 Mar 2026US$752.2bUS$109.4bUS$18.3b42.6x41.2x6.9x
Wed, 25 Feb 2026US$737.8bUS$108.9bUS$18.1b43x40.7x6.8x
Fri, 23 Jan 2026US$659.1bUS$106.1bUS$16.7b31.3x39.4x6.2x
Sun, 21 Dec 2025US$675.5bUS$106.1bUS$16.7b32x40.4x6.4x
Tue, 18 Nov 2025US$656.3bUS$105.9bUS$16.6b31.6x39.6x6.2x
Thu, 16 Oct 2025US$653.4bUS$103.3bUS$16.0b30.8x40.8x6.3x
Sat, 13 Sep 2025US$652.2bUS$103.3bUS$16.0b27.6x40.8x6.3x
Mon, 11 Aug 2025US$626.7bUS$101.6bUS$14.9b25x42x6.2x
Wed, 09 Jul 2025US$554.0bUS$100.5bUS$14.0b28.7x39.6x5.5x
Fri, 06 Jun 2025US$532.4bUS$105.5bUS$14.3b26.7x37.2x5x
Sun, 04 May 2025US$499.0bUS$103.3bUS$13.1b22.6x38x4.8x
Tue, 01 Apr 2025US$490.0bUS$102.8bUS$12.4b25.8x39.4x4.8x
Thu, 27 Feb 2025US$529.7bUS$104.5bUS$12.3b27.7x43.2x5.1x
Sat, 25 Jan 2025US$588.6bUS$102.4bUS$11.9b26.4x49.3x5.7x
Mon, 23 Dec 2024US$541.1bUS$102.5bUS$12.1b24.8x44.8x5.3x
Wed, 20 Nov 2024US$507.6bUS$102.4bUS$12.1b24.2x41.9x5x
Fri, 18 Oct 2024US$506.7bUS$103.0bUS$12.0b28.5x42.2x4.9x
Sun, 15 Sep 2024US$453.3bUS$103.0bUS$12.0b24.6x37.8x4.4x
Tue, 13 Aug 2024US$410.0bUS$102.9bUS$13.7b23.2x29.9x4x
Thu, 11 Jul 2024US$348.8bUS$92.6bUS$12.6b25.2x27.6x3.8x
Sat, 08 Jun 2024US$328.1bUS$92.7bUS$12.6b27.3x26x3.5x
Mon, 06 May 2024US$325.0bUS$94.4bUS$14.4b28.9x22.6x3.4x
Wed, 03 Apr 2024US$407.8bUS$104.8bUS$16.3b33.8x25.1x3.9x
Fri, 01 Mar 2024US$389.7bUS$104.8bUS$16.4b32.1x23.8x3.7x
Sun, 28 Jan 2024US$349.0bUS$96.0bUS$14.9b27.3x23.4x3.6x
Tue, 26 Dec 2023US$329.6bUS$96.1bUS$15.1b25.1x21.8x3.4x
Thu, 23 Nov 2023US$309.9bUS$96.2bUS$14.9b22.9x20.8x3.2x
Sat, 21 Oct 2023US$317.6bUS$94.7bUS$14.6b20.5x21.7x3.4x
Mon, 18 Sep 2023US$336.4bUS$94.7bUS$14.6b28.3x23x3.6x
Wed, 16 Aug 2023US$326.0bUS$92.4bUS$13.6b26.9x24x3.5x
Price to Earnings Ratio

24x


Total Market Cap: US$326.0bTotal Earnings: US$13.6bTotal Revenue: US$92.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Communications Industry Price to Earnings3Y Average 35.8x202420252026
Current Industry PE
  • Investors are optimistic on the American Communications industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 49.6x which is higher than its 3-year average PE of 35.8x.
  • The 3-year average PS ratio of 5.2x is lower than the industry's current PS ratio of 8.9x.
Past Earnings Growth
  • The earnings for companies in the Communications industry have grown 15% per year over the last three years.
  • Revenues for these companies have grown 8.1% 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. Tech industry?

US Market4.18%
Tech7.72%
Communications6.27%
Communications Equipment6.27%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CSCO Cisco SystemsUS$121.434.7%
+US$21.4b		69.1%PE40x
LITE Lumentum HoldingsUS$890.1724.7%
+US$13.7b		665.6%PE157.8x
ANET Arista NetworksUS$188.674.6%
+US$10.9b		35.6%PE58.8x
MSI Motorola SolutionsUS$467.557.3%
+US$5.0b		3.1%PE36.3x
CIEN CienaUS$412.399.4%
+US$5.0b		333.8%PE133.2x

Latest News

AAOI
US$135.63
Applied Optoelectronics
7D
43.8%
1Y
528.2%
ONDS
US$9.11
Ondas
7D
21.6%
1Y
156.6%
CIEN
US$412.39
Ciena
7D
9.4%
1Y
333.8%
Seeking Alpha • Aug 08

Ciena: Not The Best Photonics Idea

Summary Ciena remains a hold as the AI data center build-out drives growth, but valuation is stretched versus peers. CIEN's asset-light model and strong gross margins support potential margin expansion if high revenue growth persists. Competitive risks, supply chain vulnerabilities, and reliance on AI infrastructure spending could constrain upside. Peer comps show CIEN as high growth but less attractive than Lumentum or Coherent on valuation and growth. Read the full article on Seeking Alpha
CLFD
US$27.48
Clearfield
7D
-9.2%
1Y
-16.2%
MSI
US$467.55
Motorola Solutions
7D
7.3%
1Y
3.1%
Narrative Update • Aug 07

MSI: Public Safety Demand And Drone Technologies Will Drive Future Upside

Analysts have lifted the fair value estimate for Motorola Solutions by about $15 to $521.82, reflecting higher price targets after a Q2 beat, ongoing demand strength across products and software, and positive commentary on growth in drone and related technologies. Analyst Commentary Recent commentary on Motorola Solutions points to a generally positive tone following the Q2 report, with several firms lifting price targets and highlighting execution across both products and software.
KVHI
US$8.03
KVH Industries
7D
-13.3%
1Y
52.1%
NTCT
US$38.44
NetScout Systems
7D
-5.5%
1Y
78.0%
VISN
US$10.94
Vistance Networks
7D
-6.8%
1Y
-29.8%
ANET
US$188.67
Arista Networks
7D
4.6%
1Y
35.6%
Seeking Alpha • Aug 07

Arista Networks: Nice Growth -- Don't Buy It

Summary Arista Networks, Inc. delivered another strong quarter, beating revenue by 7.5% and EPS by 15%. ANET is a prime beneficiary of the ongoing AI-driven capital expenditure surge among hyperscalers. Despite consistent outperformance, ANET stock trades at ~50x forward earnings, reflecting high expectations for future growth. I remain neutral on ANET, as exceptional results and growth are already priced into the stock's current valuation. Read the full article on Seeking Alpha
EXTR
US$23.97
Extreme Networks
7D
-20.5%
1Y
20.2%
Seeking Alpha • Aug 07

Extreme Networks Q4: Fine Print But Still Overvalued After The Pullback

Summary Extreme Networks delivered solid FY26 results, with 12.6% revenue growth and strong product momentum, but shares fell over 25% post-earnings. Despite decelerating growth and investor disappointment, EXTR's guidance for next year was in line with or above consensus, suggesting the sell-off may be overdone. The transition to the Platform ONE subscription is ongoing, with SaaS ARR up 17.7%, and long-term margin expansion is expected as recurring revenues increase. I maintain a 'Hold' rating, targeting entry below $20, as the recent pullback brings EXTR closer to its intrinsic value based on conservative DCF assumptions. Read the full article on Seeking Alpha
ADTN
US$7.56
ADTRAN Holdings
7D
-11.2%
1Y
-12.0%
Narrative Update • Aug 07

ADTN: Optical Demand And AI Solutions Will Support FY25 Recovery

Analysts have reduced the fair value estimate for ADTRAN Holdings from about $19.50 to roughly $14.67, citing lower price targets across the Street following softer Q2 results, tighter supply conditions, project timing issues with a key customer, and pressure on gross margins from strong but lower margin 100ZR pluggable demand. Analyst Commentary Recent Street commentary on ADTRAN Holdings points to a mixed view.
FFIV
US$400.23
F5
7D
-0.6%
1Y
24.4%
Narrative Update • Aug 06

FFIV: AI Security Demand In Hybrid Multicloud Environments Will Support Future Upside

Analysts have raised their fair value estimate for F5 to $515 from $500, citing a series of beat and raise quarters supported by steady systems demand, hybrid multicloud refresh activity, expanding AI use cases, and firmer profit margin assumptions, along with a slightly lower future P/E multiple. Analyst Commentary Recent Street research on F5 points to a broadly constructive tone following the latest fiscal updates and investor events.
CSCO
US$121.43
Cisco Systems
7D
4.7%
1Y
69.1%
LITE
US$890.17
Lumentum Holdings
7D
24.7%
1Y
665.6%
Narrative Update • Aug 05

LITE: AI Optical Demand And Co Packaged Optics Timing Will Shape Returns

Analysts have lifted their fair value estimate for Lumentum Holdings to about $863 from roughly $775, reflecting updated assumptions for revenue, profit margins and future P/E that reference recent price target changes and research focused on steady fundamentals and potential AI driven optical demand. Analyst Commentary Recent research on Lumentum Holdings shows a mix of optimism about AI driven optical demand and caution around execution timing and valuation.
ITRN
US$52.95
Ituran Location and Control
7D
-4.0%
1Y
25.5%
UI
US$566.27
Ubiquiti
7D
1.8%
1Y
20.7%
Seeking Alpha • Jul 08

Ubiquiti: Even The Bull Case Struggles To Reach Today's Price

Summary Ubiquiti is rated Sell, as the current valuation exceeds the justified fair value based on forward growth and peer multiples. Enterprise Technology drives 91% of revenue, compounding above 20%, but consensus expects a deceleration to 12.9% growth in FY2027. Despite a debt-free balance sheet and 47% gross margins, UI's price ($525) sits above a defensible fair value range of $400–$490. Thin analyst coverage and single-segment growth concentration heighten valuation risk; upside depends on sustained Enterprise Tech acceleration or Service Provider stabilization. Read the full article on Seeking Alpha