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U.S. Telecom Sector Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies483
  • 7D-5.0%
  • 3M-7.7%
  • 1Y21.5%
  • YTD-7.3%

Over the last 7 days, the Telecom industry has dropped 2.7%, driven by a pullback from Alphabet of 2.8%. Over the past 12 months, the industry was up 25%. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

Has the U.S. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 25 Mar 2026US$7.4tUS$1.7tUS$272.3b16.9x27.1x4.4x
Fri, 20 Feb 2026US$7.5tUS$1.7tUS$277.4b16.9x27x4.5x
Sun, 18 Jan 2026US$7.8tUS$1.6tUS$282.2b16x27.7x4.8x
Tue, 16 Dec 2025US$7.7tUS$1.6tUS$280.9b17x27.4x4.7x
Thu, 13 Nov 2025US$7.5tUS$1.6tUS$285.2b17.9x26.3x4.6x
Sat, 11 Oct 2025US$7.2tUS$1.6tUS$286.1b17.6x25.2x4.5x
Mon, 08 Sep 2025US$7.3tUS$1.6tUS$286.2b21x25.6x4.5x
Wed, 06 Aug 2025US$6.9tUS$1.6tUS$270.7b18.5x25.4x4.2x
Fri, 04 Jul 2025US$6.6tUS$1.6tUS$250.4b18.1x26.6x4.2x
Sun, 01 Jun 2025US$6.2tUS$1.6tUS$249.8b17.8x24.8x3.9x
Tue, 29 Apr 2025US$5.7tUS$1.6tUS$240.0b17x23.6x3.6x
Thu, 27 Mar 2025US$6.0tUS$1.6tUS$227.9b18x26.4x3.8x
Sat, 22 Feb 2025US$6.4tUS$1.6tUS$225.2b20.4x28.2x4x
Mon, 20 Jan 2025US$6.2tUS$1.6tUS$189.6b19x32.6x3.9x
Wed, 18 Dec 2024US$6.3tUS$1.6tUS$189.7b18.7x33.3x4x
Fri, 15 Nov 2024US$5.9tUS$1.6tUS$189.4b19.4x31.3x3.8x
Sun, 13 Oct 2024US$5.6tUS$1.5tUS$188.2b18.6x30x3.7x
Tue, 10 Sep 2024US$5.1tUS$1.5tUS$191.2b18.8x26.7x3.3x
Thu, 08 Aug 2024US$5.1tUS$1.5tUS$201.9b20.2x25.4x3.3x
Sat, 06 Jul 2024US$5.6tUS$1.5tUS$191.3b16.5x29.1x3.7x
Mon, 03 Jun 2024US$5.3tUS$1.5tUS$191.0b16.4x27.6x3.5x
Wed, 01 May 2024US$4.9tUS$1.5tUS$193.3b17.5x25.6x3.2x
Fri, 29 Mar 2024US$5.1tUS$1.5tUS$175.8b18.9x28.8x3.4x
Sun, 25 Feb 2024US$4.9tUS$1.5tUS$175.3b18.3x27.9x3.3x
Tue, 23 Jan 2024US$4.8tUS$1.5tUS$128.1b14.8x37.3x3.1x
Thu, 21 Dec 2023US$4.6tUS$1.5tUS$127.9b16.1x36x3x
Sat, 18 Nov 2023US$4.5tUS$1.5tUS$127.2b15.4x35.2x2.9x
Mon, 16 Oct 2023US$4.3tUS$1.5tUS$104.7b14.9x41.3x2.9x
Wed, 13 Sep 2023US$4.4tUS$1.5tUS$104.4b13.6x41.8x2.9x
Fri, 11 Aug 2023US$4.3tUS$1.5tUS$102.6b15.2x41.9x2.9x
Sun, 09 Jul 2023US$4.1tUS$1.5tUS$106.8b17.2x38.6x2.8x
Tue, 06 Jun 2023US$4.1tUS$1.5tUS$107.4b16.2x37.8x2.7x
Thu, 04 May 2023US$3.7tUS$1.5tUS$110.7b16.9x33.9x2.5x
Sat, 01 Apr 2023US$3.8tUS$1.5tUS$115.4b17.5x32.7x2.5x
Price to Earnings Ratio

32.7x


Total Market Cap: US$3.8tTotal Earnings: US$115.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.4x202420252026
Current Industry PE
  • Investors are pessimistic on the American Communication 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 27.0x which is lower than its 3-year average PE of 30.4x.
  • The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 4.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 33% per year over the last three years.
  • Revenues for these companies have grown 4.1% 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. Telecom sector?

US Market-2.29%
Telecom-5.02%
Telecom Services and Carriers0.40%
Wireless Telecom-0.89%
Media-2.12%
Entertainment-4.00%
Interactive Media and Services-6.07%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 19.4%, which is higher than its past year's earnings decline of 4.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 29% over the next 5 years.
  • This is better than its past earnings decline of 0.02% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 7.8% 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
T AT&TUS$28.873.7%
+US$6.6b		5.7%PE9.2x
VZ Verizon CommunicationsUS$50.910.8%
+US$1.6b		17.1%PE12.5x
NYT New York TimesUS$84.164.9%
+US$636.3m		71.3%PE39.6x
EA Electronic ArtsUS$201.620.7%
+US$372.9m		39.5%PE74.2x
FOXA FoxUS$58.760.8%
+US$195.7m		6.9%PE13.2x

Latest News

META
US$592.92
Meta Platforms
7D
-4.8%
1Y
-5.3%
CNK
US$28.15
Cinemark Holdings
7D
5.2%
1Y
10.0%

CNK: 2026 Margin Uncertainty Around Normalized Box Office Will Limit Upside

Analysts have nudged their price targets on Cinemark higher by a few dollars, into a $22 to $36 range. This reflects updated views on box office recovery potential, questions about margin expansion, and recent Q4 performance trends.
FOXA
US$58.76
Fox
7D
0.8%
1Y
6.9%
EA
US$201.62
Electronic Arts
7D
0.7%
1Y
39.5%

EA: Job Cuts And Player Retention Trends Will Shape Future Returns

Analysts have kept their price target on Electronic Arts steady at $205.59, citing only very small tweaks to assumptions for discount rate, revenue growth, profit margin and future P/E that do not materially change their valuation view. What's in the News EA is cutting an unspecified number of roles across its Battlefield studios, including Criterion, Dice, Ripple Effect and Motive, as part of a broader realignment while continuing live service support for Battlefield 6 following its 2025 launch (IGN).
CMCSA
US$29.22
Comcast
7D
-2.9%
1Y
-20.9%

CMCSA: Fiber Headwinds And Versant Spin Off Will Reframe Earnings Power

Analysts have trimmed their fair value estimate for Comcast to $33.01 from $33.93, reflecting lower assumed revenue growth and profit margins, a slightly higher discount rate, and recent Street price target cuts tied to fiber competition and the Versant spin off, partially offset by a few modest target increases. Analyst Commentary Street research on Comcast has become more divided, with several price target cuts and downgrades offset by a smaller number of upgrades and modest target increases.
DIS
US$96.39
Walt Disney
7D
-3.9%
1Y
-5.1%

DIS: IP Strength And New Leadership Will Support Future Share Repricing

Narrative Update on Walt Disney The updated analyst price target for Walt Disney edges slightly lower to about $130. This reflects small adjustments to fair value and discount rate as analysts factor in recent target cuts from firms that still cite solid execution and the strength of the company’s intellectual property and multi platform engagement.
NFLX
US$90.92
Netflix
7D
-3.6%
1Y
-8.8%

NFLX: Walking From Warner Deal Will Refocus On Content And Efficiency

Analysts have modestly increased the blended price target for Netflix by about $2 to reflect updated views on content investment, operating efficiency and valuation multiples after the company opted out of a Warner Bros. Discovery deal.
SPOT
US$484.85
Spotify Technology
7D
-7.7%
1Y
-21.3%

SPOT: Recurring Price Hikes And Firmer Margins Will Support Revaluation Potential

Spotify's analyst fair value estimate has been adjusted from $889.24 to $767.84 as analysts factor in slightly higher discount rates and a lower future P/E, partly offset by firmer margin expectations and views that AI related risks to the platform and its pricing power are limited. Analyst Commentary Recent research on Spotify highlights a split view on AI risk and pricing power, but there is a clear cluster of bullish analysts who still see upside in the story despite a period of target cuts across the Street.
BIDU
US$112.53
Baidu
7D
-6.8%
1Y
18.0%

BIDU: AI Transition Will Likely Lag Persistent Weakness In Legacy Advertising

Analysts have nudged Baidu's fair value estimate higher to about $110 as they update price targets, citing the ongoing shift toward AI driven businesses, including chips and related products, while still accounting for pressure in the legacy online marketing segment. Analyst Commentary Recent Street research on Baidu reflects a mix of optimism around its AI pivot and caution around execution risk and the health of its legacy businesses.
NYT
US$84.16
New York Times
7D
4.9%
1Y
71.3%

NYT: Elevated Revenue And Margin Assumptions Will Restrain Future Share Returns

Analysts have lifted their average price targets on The New York Times by mid single digit amounts in recent research, pointing to updated assumptions for revenue growth, profit margins, and a slightly lower future P/E multiple as key drivers of the new $70.75 fair value estimate. Analyst Commentary Recent Street research has focused on how updated revenue and margin assumptions feed into a higher fair value for The New York Times, with several firms lifting price targets by low to mid single digit dollar amounts.
GOOGL
US$290.44
Alphabet
7D
-6.6%
1Y
70.3%

GOOGL: AI Partnerships And Compute Capacity Will Support Long Term Upside

Analysts have slightly increased their price target for Alphabet to about $377, reflecting broad Street support for the company's position in AI data, distribution, and compute, as well as recent partnership momentum around Gemini with major technology and retail platforms. Analyst Commentary Recent research points to a clear skew toward optimism on Alphabet, especially around its AI positioning, cloud trajectory, and a growing set of high profile partnerships.
T
US$28.87
AT&T
7D
3.7%
1Y
5.7%

T: Future Returns Will Be Pressured By Rich P/E Versus Fundamentals

Analysts have raised AT&T's price target to $25.11 from $23.24, reflecting updated assumptions that include slightly higher revenue growth, a modest change in the discount rate, a small adjustment to profit margin expectations, and a higher future P/E multiple. What's in the News AT&T introduced updated Unlimited Your Way wireless plans, including the new AT&T Value 2.0 entry level option, offering mix and match flexibility, more high speed data, and features such as ActiveArmor and unlimited talk, text, and data across the U.S., Canada, and Mexico (Product related announcement).
TTWO
US$191.37
Take-Two Interactive Software
7D
-7.4%
1Y
-12.2%

TTWO: GenAI And GPU Adoption Will Shape Repricing As GTA Guidance Arrives

Analysts have trimmed the fair value estimate for Take-Two Interactive Software by $1 to $300, reflecting updated unit economics for GTA 5, a reassessment of GTA Online's potential, and mixed price target moves across the Street. Analyst Commentary Recent Street research shows that while some targets have been trimmed at the margin, many bullish analysts remain constructive on Take-Two Interactive Software, pointing to upcoming catalysts and reinforcing higher fair value ranges.
TIGO
US$75.07
Millicom International Cellular
7D
1.5%
1Y
152.3%

TIGO: Telefonica Chile Bid And Rich P E Multiple Will Constrain Returns

Millicom International Cellular's updated analyst price target moves slightly to $46.65 from $46.80, as analysts factor in higher modeled revenue growth, a lower profit margin outlook, a higher P/E multiple, and a modestly higher discount rate amid mixed recent rating changes. Analyst Commentary Recent Street research on Millicom International Cellular reflects a split view, with some firms outlining upside scenarios at higher price targets and others flagging balance sheet and execution risks.
VZ
US$50.91
Verizon Communications
7D
0.8%
1Y
17.1%

VZ: Fair Value View Will Reflect Cost Cuts And Execution Risks

Narrative Update: Verizon Communications The analyst price target for Verizon Communications edges higher to approximately $50.00, up by a small fraction. Analysts point to firming trends in subscriber additions, cost efficiencies and broadband growth, which are reflected in a slightly higher fair value estimate and a modestly higher assumed future P/E of about 12x.
CARG
US$34.83
CarGurus
7D
4.2%
1Y
9.7%

CARG: Dealer Data And Buybacks Will Offset AI And Margin Investment Concerns

CarGurus' blended analyst price target has edged down by about $0.83 as analysts factor in 2026 guidance, which combines expected revenue growth with planned margin investment and ongoing debate around the impact of AI disruption narratives on the business. Analyst Commentary Street research around CarGurus' 2026 outlook clusters around how the company balances revenue growth targets with margin investment and the AI disruption narrative that has pressured sentiment.