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U.S. Telecom Sector Analysis

UpdatedFeb 15, 2026
DataAggregated Company Financials
Companies502
  • 7D-3.2%
  • 3M2.9%
  • 1Y15.9%
  • YTD-3.1%

Over the last 7 days, the Telecom industry has dropped 3.2%, driven by Alphabet declining 5.3%. In contrast, T-Mobile US has gained 11%. In the past year, the industry has gained 16%. As for the next few years, earnings are expected to grow by 13% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 15 Feb 2026US$7.5tUS$1.7tUS$282.6b16.3x26.6x4.5x
Tue, 13 Jan 2026US$8.0tUS$1.6tUS$282.3b16.4x28.2x4.8x
Thu, 11 Dec 2025US$7.8tUS$1.6tUS$281.1b16.3x27.8x4.8x
Sat, 08 Nov 2025US$7.3tUS$1.6tUS$285.5b17.6x25.5x4.4x
Mon, 06 Oct 2025US$7.3tUS$1.6tUS$286.1b18.9x25.5x4.5x
Wed, 03 Sep 2025US$7.0tUS$1.6tUS$286.1b21.8x24.4x4.3x
Fri, 01 Aug 2025US$6.7tUS$1.6tUS$261.2b19.1x25.6x4.1x
Sun, 29 Jun 2025US$6.6tUS$1.6tUS$250.2b17.5x26.5x4.1x
Tue, 27 May 2025US$6.1tUS$1.6tUS$248.0b16.9x24.6x3.8x
Thu, 24 Apr 2025US$5.5tUS$1.6tUS$229.1b16.2x24x3.5x
Sat, 22 Mar 2025US$5.8tUS$1.6tUS$228.1b17.6x25.5x3.7x
Mon, 17 Feb 2025US$6.6tUS$1.6tUS$218.0b19.9x30.3x4.2x
Wed, 15 Jan 2025US$6.0tUS$1.6tUS$189.6b19.6x31.7x3.8x
Fri, 13 Dec 2024US$6.4tUS$1.6tUS$189.5b18.7x33.6x4x
Sun, 10 Nov 2024US$5.9tUS$1.6tUS$188.8b18.9x31.2x3.8x
Tue, 08 Oct 2024US$5.7tUS$1.5tUS$188.2b18.3x30.2x3.7x
Thu, 05 Sep 2024US$5.2tUS$1.6tUS$189.1b18.8x27.7x3.4x
Sat, 03 Aug 2024US$5.3tUS$1.5tUS$202.5b19.4x26.4x3.5x
Mon, 01 Jul 2024US$5.5tUS$1.5tUS$191.3b16x28.8x3.6x
Wed, 29 May 2024US$5.3tUS$1.5tUS$191.0b16.8x27.8x3.5x
Fri, 26 Apr 2024US$4.9tUS$1.5tUS$183.4b17.8x26.8x3.2x
Sun, 24 Mar 2024US$5.1tUS$1.5tUS$175.9b18x28.9x3.4x
Tue, 20 Feb 2024US$4.8tUS$1.5tUS$174.0b16x27.7x3.2x
Thu, 18 Jan 2024US$4.6tUS$1.5tUS$128.1b15.1x36.2x3.1x
Sat, 16 Dec 2023US$4.6tUS$1.5tUS$128.0b16.7x35.8x3x
Mon, 13 Nov 2023US$4.4tUS$1.5tUS$125.7b13.1x34.6x2.9x
Wed, 11 Oct 2023US$4.4tUS$1.5tUS$104.7b14.3x42x2.9x
Fri, 08 Sep 2023US$4.3tUS$1.5tUS$104.4b14.7x41.1x2.9x
Sun, 06 Aug 2023US$4.3tUS$1.5tUS$103.2b14.9x41.5x2.9x
Tue, 04 Jul 2023US$4.1tUS$1.5tUS$107.0b17.2x38.8x2.8x
Thu, 01 Jun 2023US$4.0tUS$1.5tUS$107.2b14x37.5x2.7x
Sat, 29 Apr 2023US$3.8tUS$1.5tUS$113.1b16.4x33.9x2.6x
Mon, 27 Mar 2023US$3.7tUS$1.5tUS$115.3b16.4x32.2x2.5x
Wed, 22 Feb 2023US$3.5tUS$1.5tUS$121.7b19.4x28.8x2.4x
Price to Earnings Ratio

28.8x


Total Market Cap: US$3.5tTotal Earnings: US$121.7bTotal 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 26.6x 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 4.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 32% 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-1.34%
Telecom-3.23%
Wireless Telecom10.04%
Telecom Services and Carriers2.88%
Media-0.64%
Entertainment-1.83%
Interactive Media and Services-4.74%
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 16.0%, 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 4.0% 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$219.5011.2%
+US$21.1b		-18.9%PE22x
VZ Verizon CommunicationsUS$49.015.8%
+US$11.4b		19.6%PE12x
T AT&TUS$28.695.8%
+US$9.9b		10.9%PE9.2x
SPOT Spotify TechnologyUS$458.348.5%
+US$7.2b		-28.2%PE35.9x
LYV Live Nation EntertainmentUS$158.2712.4%
+US$4.0b		2.9%PE114.1x

Latest News

SPHR
US$115.70
Sphere Entertainment
7D
24.1%
1Y
140.0%
GOOGL
US$305.72
Alphabet
7D
-5.3%
1Y
65.0%

Alphabet's (NASDAQ:GOOGL) Promising Earnings May Rest On Soft Foundations

Feb 14
Alphabet's (NASDAQ:GOOGL) Promising Earnings May Rest On Soft Foundations
PINS
US$15.42
Pinterest
7D
-21.3%
1Y
-60.3%
TMUS
US$219.50
T-Mobile US
7D
11.2%
1Y
-18.9%
LYV
US$158.27
Live Nation Entertainment
7D
12.4%
1Y
2.9%
META
US$639.77
Meta Platforms
7D
-3.3%
1Y
-13.2%
DIS
US$105.45
Walt Disney
7D
-3.0%
1Y
-4.5%
FOXA
US$56.35
Fox
7D
-13.0%
1Y
1.3%

Fox (NASDAQ:FOXA) Is Due To Pay A Dividend Of $0.28

Feb 13
Fox (NASDAQ:FOXA) Is Due To Pay A Dividend Of $0.28
SPOT
US$458.34
Spotify Technology
7D
8.5%
1Y
-28.2%

Spotify - A Fundamental and Historical Valuation

️Business Overview Key Metrics Total: -1/17 +1 ✅ Projected Operating Margin: 17.56% +1 ✅ Projected 5-Year Revenue CAGR: 10.87% +0 ⚠️ Last 5-Year ROIC: 4.68% -2 ❌ Estimated Cost of Capital: 7.71% (greater than ROIC) -1 ❌ Last 5-Year Shares Outstanding CAGR: +2.07% +1 ✅ Projected 5-Year EPS CAGR: 15.46% +0 ⚠️ Projected 5-Year Dividend CAGR: N/A +1 ✅ Estimated Debt Rating: A1 -1 ❌ Morningstar Moat: Narrow -1 ❌ Morningstar Uncertainty: High Despite its Narrow Moat rating by Morningstar, Spotify still shows an operating margin around ~15-20% and expanding. Its revenue and EPS growth is also solid between 10-15%.
ASTS
US$82.51
AST SpaceMobile
7D
-18.9%
1Y
157.0%
NFLX
US$76.87
Netflix
7D
-6.5%
1Y
-27.4%
CHTR
US$239.09
Charter Communications
7D
3.4%
1Y
-33.6%
WBD
US$27.99
Warner Bros. Discovery
7D
2.3%
1Y
170.7%
VZ
US$49.01
Verizon Communications
7D
5.8%
1Y
19.6%

Verizon Communications (NYSE:VZ) Is Increasing Its Dividend To $0.7075

Feb 11
Verizon Communications (NYSE:VZ) Is Increasing Its Dividend To $0.7075
BIDU
US$137.01
Baidu
7D
-6.1%
1Y
40.6%
T
US$28.69
AT&T
7D
5.8%
1Y
10.9%