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U.S. Telecom Sector Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies498
  • 7D-2.4%
  • 3M3.5%
  • 1Y17.5%
  • YTD-3.3%

Over the last 7 days, the Telecom industry has dropped 2.4%, driven by a pullback from Alphabet of 2.5%. This takes the industry's 12 month performance to a gain of 18%. Earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026US$7.5tUS$1.7tUS$282.5b16.5x26.4x4.4x
Sat, 17 Jan 2026US$7.9tUS$1.6tUS$282.2b16x27.9x4.8x
Mon, 15 Dec 2025US$7.7tUS$1.6tUS$280.9b17.1x27.4x4.7x
Wed, 12 Nov 2025US$7.5tUS$1.6tUS$285.2b18.1x26.2x4.5x
Fri, 10 Oct 2025US$7.3tUS$1.6tUS$286.1b19.1x25.5x4.5x
Sun, 07 Sep 2025US$7.3tUS$1.6tUS$286.2b21x25.5x4.5x
Tue, 05 Aug 2025US$6.7tUS$1.6tUS$270.0b19.1x24.8x4.1x
Thu, 03 Jul 2025US$6.6tUS$1.6tUS$250.2b18.1x26.5x4.1x
Sat, 31 May 2025US$6.2tUS$1.6tUS$249.8b17.8x24.8x3.9x
Mon, 28 Apr 2025US$5.7tUS$1.6tUS$240.0b17.1x23.6x3.6x
Wed, 26 Mar 2025US$6.0tUS$1.6tUS$227.9b18.3x26.2x3.8x
Fri, 21 Feb 2025US$6.5tUS$1.6tUS$224.3b19.7x29.1x4.1x
Sun, 19 Jan 2025US$6.2tUS$1.6tUS$189.6b19x32.6x3.9x
Tue, 17 Dec 2024US$6.2tUS$1.6tUS$189.8b18.6x32.9x4x
Thu, 14 Nov 2024US$6.0tUS$1.6tUS$189.3b18.6x31.5x3.8x
Sat, 12 Oct 2024US$5.6tUS$1.5tUS$188.2b18.6x29.7x3.6x
Mon, 09 Sep 2024US$5.1tUS$1.5tUS$191.2b18.8x26.6x3.3x
Wed, 07 Aug 2024US$5.1tUS$1.5tUS$201.9b18.1x25.3x3.3x
Fri, 05 Jul 2024US$5.6tUS$1.5tUS$191.3b18.1x29.1x3.7x
Sun, 02 Jun 2024US$5.3tUS$1.5tUS$191.0b16.4x27.6x3.5x
Tue, 30 Apr 2024US$5.1tUS$1.5tUS$192.7b18.1x26.5x3.4x
Thu, 28 Mar 2024US$5.1tUS$1.5tUS$175.8b19.6x28.8x3.4x
Sat, 24 Feb 2024US$4.9tUS$1.5tUS$174.1b18.1x28.1x3.3x
Mon, 22 Jan 2024US$4.8tUS$1.5tUS$128.1b15.1x37.2x3.1x
Wed, 20 Dec 2023US$4.6tUS$1.5tUS$127.9b17x36x3x
Fri, 17 Nov 2023US$4.5tUS$1.5tUS$127.0b14.3x35.2x2.9x
Sun, 15 Oct 2023US$4.3tUS$1.5tUS$104.7b14.9x41.3x2.9x
Tue, 12 Sep 2023US$4.4tUS$1.5tUS$104.4b14.4x41.8x2.9x
Thu, 10 Aug 2023US$4.3tUS$1.5tUS$103.4b15.6x41.4x2.9x
Sat, 08 Jul 2023US$4.1tUS$1.5tUS$106.8b17.2x38.6x2.8x
Mon, 05 Jun 2023US$4.1tUS$1.5tUS$107.4b14.8x37.8x2.7x
Wed, 03 May 2023US$3.8tUS$1.5tUS$113.5b16.5x33.1x2.5x
Fri, 31 Mar 2023US$3.7tUS$1.5tUS$115.4b16.6x32.1x2.5x
Sun, 26 Feb 2023US$3.4tUS$1.5tUS$117.4b18.7x29.2x2.3x
Price to Earnings Ratio

29.2x


Total Market Cap: US$3.4tTotal Earnings: US$117.4bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 30.5x202420252026
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 26.4x which is lower than its 3-year average PE of 30.5x.
  • The 3-year average PS ratio of 3.5x 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 34% per year over the last three years.
  • Revenues for these companies have grown 4.5% 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-0.74%
Telecom-2.38%
Wireless Telecom1.57%
Media-0.29%
Entertainment-1.26%
Telecom Services and Carriers-2.13%
Interactive Media and Services-2.87%
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 15.5%, 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 26% over the next 5 years.
  • This is better than its past earnings decline of 2.8% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 3.6% 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
TMUS T-Mobile USUS$213.251.8%
+US$4.1b		-19.0%PE21.4x
WBD Warner Bros. DiscoveryUS$28.792.9%
+US$2.0b		164.4%PE146x
RDDT RedditUS$147.465.9%
+US$1.6b		-22.3%PE53.2x
MSGS Madison Square Garden SportsUS$341.7621.8%
+US$1.5b		64.7%PS7.7x
SATS EchoStarUS$114.464.0%
+US$1.3b		281.4%PS2.2x

Latest News

TMUS
US$213.25
T-Mobile US
7D
1.8%
1Y
-19.0%
MSGS
US$341.76
Madison Square Garden Sports
7D
21.8%
1Y
64.7%
LYV
US$155.78
Live Nation Entertainment
7D
3.1%
1Y
1.4%
ROKU
US$90.21
Roku
7D
8.8%
1Y
-2.8%

ROKU: Neutral Platform Positioning Will Support Expanding Profitability Into 2026

The updated analyst price target for Roku has increased from $115.48 to $127.44. This change reflects recent Street research indicating stronger expected revenue growth, higher projected profit margins, and a lower assumed discount rate, supported by views on the company’s platform positioning and earnings outlook.
NFLX
US$77.99
Netflix
7D
-2.0%
1Y
-25.2%

NFLX: Shares Should Benefit As Warner Asset Bid Expands Content Scale

Analysts have trimmed their fair value estimate for Netflix to $111.43 from $134.44, reflecting lower future P/E expectations around $30.78 and slightly softer revenue growth assumptions, even as they factor in marginally higher profit margins and mixed reactions to potential Warner Bros. assets and recent advertising momentum.
SATS
US$114.46
EchoStar
7D
4.0%
1Y
281.4%
GOOGL
US$303.33
Alphabet
7D
-2.5%
1Y
63.7%

GOOGL: AI Partnerships And Easing Regulation Will Support Multi Year Re Rating

The analyst price target for Alphabet has been updated from $415.20 to $443.00. This reflects analysts' use of slightly lower discount rates, higher revenue growth and profit margin assumptions, and a modestly lower future P/E multiple supported by recent Street research highlighting Gemini partnerships and AI monetization potential.
T
US$27.88
AT&T
7D
-2.1%
1Y
6.3%

T: Future Returns Will Be Constrained By Lower Expected P/E Multiple

Analysts have adjusted their AT&T price target from $26.00 to about $23.24. This reflects updated views on fair value, discount rate, revenue growth, profit margins, and future P/E expectations.
FWON.K
US$89.43
Formula One Group
7D
5.2%
1Y
-9.0%

FWON.K: Third Party Race Promotion And 2026 Deals Will Drive Upside

Analysts have nudged their fair value estimate for Formula One Group down from about $139 to $135. This reflects slightly higher discount rate assumptions, more cautious revenue growth expectations, and a lower future P/E multiple, partly offset by stronger projected profit margins and recent positive research that includes higher price targets and an upgrade to Outperform.
META
US$643.22
Meta Platforms
7D
-3.8%
1Y
-8.6%

The Superintelligence Pivot: Meta’s $135 Billion Bet on the Energy-Compute Nexus

Meta is currently the most debated stock in the "Magnificent Seven." After the "Year of Efficiency" in 2023, Zuckerberg has flipped the script, entering a "Year of Superintelligence." The narrative for 2026 is a race between two forces: Margin Compression (due to $100B+ in capex depreciation) and Ad-Tech Industrialization (AI-driven ads that convert at 3x the legacy rate). While the "Fair Value" sits at $556 , institutional investors are hesitant to sell because Meta’s Family of Apps (DAP: 3.58 Billion) provides a "user moat" that no other AI company can match.
VZ
US$48.05
Verizon Communications
7D
-1.9%
1Y
14.4%

Verizon Communications Inc. (NYSE:VZ) Stock Rockets 26% But Many Are Still Ignoring The Company

Feb 16
Verizon Communications Inc. (NYSE:VZ) Stock Rockets 26% But Many Are Still Ignoring The Company
RBLX
US$63.06
Roblox
7D
-8.6%
1Y
-0.9%

Roblox Corporation (NYSE:RBLX) Stocks Pounded By 28% But Not Lagging Industry On Growth Or Pricing

Feb 15
Roblox Corporation (NYSE:RBLX) Stocks Pounded By 28% But Not Lagging Industry On Growth Or Pricing
RDDT
US$147.46
Reddit
7D
5.9%
1Y
-22.3%
ASTS
US$84.43
AST SpaceMobile
7D
-12.9%
1Y
170.9%
WBD
US$28.79
Warner Bros. Discovery
7D
2.9%
1Y
164.4%
TME
US$15.29
Tencent Music Entertainment Group
7D
-9.7%
1Y
16.7%