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U.S. Telecom Sector Analysis

UpdatedApr 02, 2026
DataAggregated Company Financials
Companies479
  • 7D0.4%
  • 3M-6.4%
  • 1Y28.6%
  • YTD-6.3%

Over the last 7 days, the Telecom industry has dropped 1.0%, driven by Meta Platforms declining 2.6%. Over the past 12 months, the industry was up 26%. As for the next few years, earnings are expected to grow by 14% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Apr 2026US$7.1tUS$1.7tUS$272.6b15.7x26.2x4.3x
Sat, 28 Feb 2026US$7.6tUS$1.7tUS$274.8b19.7x27.7x4.5x
Mon, 26 Jan 2026US$7.9tUS$1.7tUS$283.0b16.6x27.8x4.8x
Wed, 24 Dec 2025US$7.8tUS$1.6tUS$280.8b16.3x27.8x4.8x
Fri, 21 Nov 2025US$7.3tUS$1.6tUS$283.0b16x26x4.5x
Sun, 19 Oct 2025US$7.4tUS$1.6tUS$286.1b17.6x25.7x4.6x
Tue, 16 Sep 2025US$7.5tUS$1.6tUS$286.1b20.2x26.3x4.7x
Thu, 14 Aug 2025US$7.0tUS$1.6tUS$286.5b19.7x24.5x4.3x
Sat, 12 Jul 2025US$6.6tUS$1.6tUS$250.2b18.4x26.4x4.1x
Mon, 09 Jun 2025US$6.4tUS$1.6tUS$250.0b17.2x25.8x4x
Wed, 07 May 2025US$5.9tUS$1.6tUS$243.4b16.8x24.3x3.7x
Fri, 04 Apr 2025US$5.7tUS$1.6tUS$227.3b15.8x25.3x3.6x
Sun, 02 Mar 2025US$6.2tUS$1.6tUS$227.8b16.8x27.2x3.9x
Tue, 28 Jan 2025US$6.3tUS$1.6tUS$200.2b17.3x31.5x4x
Thu, 26 Dec 2024US$6.2tUS$1.6tUS$189.6b18x32.9x4x
Sat, 23 Nov 2024US$5.8tUS$1.6tUS$189.7b20.1x30.6x3.7x
Mon, 21 Oct 2024US$5.7tUS$1.5tUS$188.9b18.5x29.9x3.7x
Wed, 18 Sep 2024US$5.4tUS$1.5tUS$187.3b18.9x28.6x3.5x
Fri, 16 Aug 2024US$5.3tUS$1.6tUS$189.1b20.8x27.9x3.4x
Sun, 14 Jul 2024US$5.5tUS$1.5tUS$191.2b17.3x28.9x3.6x
Tue, 11 Jun 2024US$5.4tUS$1.5tUS$191.0b16.6x28.2x3.5x
Thu, 09 May 2024US$5.2tUS$1.5tUS$194.1b18x26.8x3.4x
Sat, 06 Apr 2024US$5.1tUS$1.5tUS$176.0b19.4x28.9x3.4x
Mon, 04 Mar 2024US$4.9tUS$1.5tUS$174.3b16.9x28x3.2x
Wed, 31 Jan 2024US$5.0tUS$1.5tUS$145.5b15.4x34.5x3.3x
Fri, 29 Dec 2023US$4.6tUS$1.5tUS$128.0b15.1x36.3x3.1x
Sun, 26 Nov 2023US$4.5tUS$1.5tUS$128.3b16x35.2x3x
Tue, 24 Oct 2023US$4.3tUS$1.5tUS$102.5b14.2x42x2.9x
Thu, 21 Sep 2023US$4.3tUS$1.5tUS$104.4b14x41x2.9x
Sat, 19 Aug 2023US$4.2tUS$1.5tUS$102.8b14.5x40.7x2.8x
Mon, 17 Jul 2023US$4.3tUS$1.5tUS$106.8b16.6x40x2.9x
Wed, 14 Jun 2023US$4.1tUS$1.5tUS$107.1b17.2x38.5x2.8x
Fri, 12 May 2023US$3.9tUS$1.5tUS$105.3b17.4x36.9x2.6x
Sun, 09 Apr 2023US$3.8tUS$1.5tUS$115.4b16.3x33.3x2.6x
Price to Earnings Ratio

33.3x


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 25.1x 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 4.1x.
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 4.2% 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-0.32%
Telecom0.41%
Entertainment1.82%
Interactive Media and Services0.68%
Media-0.30%
Telecom Services and Carriers-2.55%
Wireless Telecom-2.97%
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 18.7%, which is higher than its past year's earnings decline of 6.2% 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 6.6% 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
GOOGL AlphabetUS$297.392.2%
+US$78.1b		89.4%PE27.2x
NFLX NetflixUS$95.553.5%
+US$13.8b		2.1%PE36.7x
DIS Walt DisneyUS$96.560.6%
+US$1.1b		-1.3%PE14x
WMG Warner Music GroupUS$25.767.8%
+US$976.8m		-17.3%PE44.6x
TTWO Take-Two Interactive SoftwareUS$198.202.7%
+US$953.7m		-6.1%PS5.6x

Latest News

T
US$28.31
AT&T
7D
-1.7%
1Y
0.6%
META
US$579.23
Meta Platforms
7D
-2.6%
1Y
-0.8%
WBD
US$27.49
Warner Bros. Discovery
7D
1.0%
1Y
160.3%
SNAP
US$4.90
Snap
7D
9.1%
1Y
-44.8%
WMG
US$25.76
Warner Music Group
7D
7.8%
1Y
-17.3%

WMG: AI Catalog Risks Will Ultimately Support Long Term Content Economics

Analysts have nudged their price targets for Warner Music Group lower by a few dollars, citing updated assumptions that combine slightly higher growth expectations with pressure on profit margins and fresh concerns around AI related catalog and market share risks. Analyst Commentary Recent research highlights a mix of optimism about Warner Music Group's growth potential and concern around how new technologies, especially AI, could affect long term value and market share.
DIS
US$96.56
Walt Disney
7D
0.6%
1Y
-1.3%

End of OpenAI deal not a massive loss

In my last narrative, I pointed to the deal Disney struck with OpenAI as an example of its leadership in merging the entertainment and AI worlds. This deal has now ended.
NFLX
US$95.55
Netflix
7D
3.5%
1Y
2.1%

NFLX: Higher Pricing And Advertising Will Support Engagement After Warner Bid Exit

Netflix's analyst price targets have recently shifted as analysts factor in updated views on subscriber monetization, 2026 revenue assumptions, and a reset in expected P/E multiples following the decision to walk away from the Warner Bros. Discovery bid, while also incorporating the impact of price increases and advertising trends.
BIDU
US$111.90
Baidu
7D
-3.2%
1Y
21.7%

BIDU: AI Transition And Chip Spinoff Will Reshape Equity Narrative

Analysts made a small trim to the fair value estimate, alongside mixed price target moves. Some raised Baidu targets up to $180 on AI transition and chip spinoff potential, while others nudged targets lower as legacy online marketing softness and a slightly higher discount rate offset stronger assumptions for AI driven revenue growth and future P/E.
GOOGL
US$297.39
Alphabet
7D
2.2%
1Y
89.4%

GOOGL: Expanding AI Partnerships With Apple And Walmart Will Support Multi Year Re Rating

Alphabet's updated narrative keeps fair value at $443 per share while incorporating Street price target moves such as Wells Fargo's recent lift to $397. This reflects analysts' focus on Gemini traction, AI capacity build out, and broad price target increases across the coverage group.
TTWO
US$198.20
Take-Two Interactive Software
7D
2.7%
1Y
-6.1%

TTWO: GenAI Returns And GTA Guidance Will Drive Repricing Potential

Analysts have modestly reduced their average price target on Take-Two Interactive Software to about $295, reflecting updated views on Grand Theft Auto unit economics, GTA Online potential, and upcoming guidance that is expected to include the planned GTA 6 release window. Analyst Commentary Bullish analysts are generally framing the updated US$295 average price target within a wider pattern of positive sentiment on Take-Two, even as some models are recalibrated around Grand Theft Auto unit economics and GTA Online assumptions.
VZ
US$49.39
Verizon Communications
7D
-1.9%
1Y
10.4%
TMUS
US$204.25
T-Mobile US
7D
-3.4%
1Y
-22.8%

TMUS: Sector Leading 2026 Service And EBITDA Outlook Will Drive Future Upside

The analyst price target for T-Mobile US edges up slightly to $268.68 from $268.52, as analysts fine tune assumptions around revenue growth, profit margins and future P/E multiples, while also factoring in recent price target revisions and ratings changes across the Street. Analyst Commentary Recent research updates on T-Mobile US reflect a mix of optimism about the company’s growth profile and some caution around valuation and sector conditions, which together shape the modest upward move in the consensus price target.
OMC
US$75.21
Omnicom Group
7D
-0.7%
1Y
-5.3%
RBLX
US$57.63
Roblox
7D
1.7%
1Y
-6.5%
CMCSA
US$28.05
Comcast
7D
-2.4%
1Y
-23.4%
ASTS
US$83.99
AST SpaceMobile
7D
-12.6%
1Y
274.8%