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U.S. Telecom Sector Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies498
  • 7D2.3%
  • 3M-1.4%
  • 1Y27.1%
  • YTD-1.2%

Over the last 7 days, the Telecom industry has risen 2.3%, driven by gains from Alphabet of 3.3%. In the last 12 months, the industry was up 27%. 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
Thu, 26 Feb 2026US$7.6tUS$1.7tUS$275.7b15.7x27.7x4.5x
Sat, 24 Jan 2026US$7.9tUS$1.7tUS$283.0b16.6x27.8x4.8x
Mon, 22 Dec 2025US$7.7tUS$1.6tUS$280.9b16.4x27.4x4.7x
Wed, 19 Nov 2025US$7.3tUS$1.6tUS$285.7b16.4x25.5x4.4x
Fri, 17 Oct 2025US$7.4tUS$1.6tUS$286.1b17.8x25.7x4.6x
Sun, 14 Sep 2025US$7.4tUS$1.6tUS$286.1b20.7x25.8x4.6x
Tue, 12 Aug 2025US$6.9tUS$1.6tUS$285.6b20.6x24.2x4.2x
Thu, 10 Jul 2025US$6.6tUS$1.6tUS$250.2b18.2x26.4x4.1x
Sat, 07 Jun 2025US$6.3tUS$1.6tUS$249.9b17.2x25.3x4x
Mon, 05 May 2025US$5.9tUS$1.6tUS$243.7b17x24.2x3.7x
Wed, 02 Apr 2025US$5.7tUS$1.6tUS$227.4b17.3x25x3.6x
Fri, 28 Feb 2025US$6.2tUS$1.6tUS$228.1b16.4x27.3x3.9x
Sun, 26 Jan 2025US$6.4tUS$1.6tUS$198.3b18.4x32.2x4.1x
Tue, 24 Dec 2024US$6.1tUS$1.6tUS$189.6b18.4x32.2x3.9x
Thu, 21 Nov 2024US$5.9tUS$1.6tUS$189.7b19.7x31.3x3.8x
Sat, 19 Oct 2024US$5.6tUS$1.5tUS$188.9b18.6x29.7x3.6x
Mon, 16 Sep 2024US$5.3tUS$1.5tUS$188.1b18.7x28.2x3.4x
Wed, 14 Aug 2024US$5.3tUS$1.5tUS$189.8b19.5x27.7x3.4x
Fri, 12 Jul 2024US$5.7tUS$1.5tUS$191.2b17.3x29.8x3.7x
Sun, 09 Jun 2024US$5.4tUS$1.5tUS$191.0b15.3x28.1x3.5x
Tue, 07 May 2024US$5.2tUS$1.5tUS$194.6b18.7x26.6x3.4x
Thu, 04 Apr 2024US$5.2tUS$1.5tUS$176.0b19.6x29.3x3.4x
Sat, 02 Mar 2024US$4.9tUS$1.5tUS$174.4b16.8x28x3.2x
Mon, 29 Jan 2024US$5.0tUS$1.5tUS$145.5b15.1x34.2x3.3x
Wed, 27 Dec 2023US$4.6tUS$1.5tUS$127.9b15.4x36.3x3x
Fri, 24 Nov 2023US$4.5tUS$1.5tUS$127.3b16.3x35.4x3x
Sun, 22 Oct 2023US$4.3tUS$1.5tUS$102.5b14.9x41.8x2.9x
Tue, 19 Sep 2023US$4.3tUS$1.5tUS$104.4b13.7x41.7x2.9x
Thu, 17 Aug 2023US$4.2tUS$1.5tUS$102.7b15.1x41x2.8x
Sat, 15 Jul 2023US$4.3tUS$1.5tUS$106.8b16.6x40x2.9x
Mon, 12 Jun 2023US$4.1tUS$1.5tUS$107.1b15.8x37.9x2.7x
Wed, 10 May 2023US$3.8tUS$1.5tUS$106.1b16.2x35.5x2.5x
Fri, 07 Apr 2023US$3.8tUS$1.5tUS$115.5b16.6x33.3x2.6x
Sun, 05 Mar 2023US$3.5tUS$1.5tUS$113.7b19.3x31.1x2.4x
Price to Earnings Ratio

31.1x


Total Market Cap: US$3.5tTotal Earnings: US$113.7bTotal 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 relatively neutral on the American Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 30.5x.
  • The 3-year average PS ratio of 3.6x 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 34% per year over the last three years.
  • Revenues for these companies have grown 4.3% 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 Market0.90%
Telecom2.29%
Interactive Media and Services2.70%
Wireless Telecom2.40%
Entertainment1.94%
Telecom Services and Carriers0.38%
Media-1.41%
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 17.5%, which is higher than its past year's earnings decline of 8.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings decline of 2.3% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 4.6% 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$312.903.3%
+US$121.6b		85.7%PE28.6x
META Meta PlatformsUS$653.691.6%
+US$26.5b		-3.0%PE27.4x
NFLX NetflixUS$82.707.4%
+US$24.1b		-14.1%PE31.8x
TMUS T-Mobile USUS$218.662.5%
+US$6.0b		-17.0%PE21.9x
VZ Verizon CommunicationsUS$49.232.5%
+US$5.0b		14.0%PE12.1x

Latest News

VZ
US$49.23
Verizon Communications
7D
2.5%
1Y
14.0%
FOXA
US$54.12
Fox
7D
-5.3%
1Y
-4.8%
CHTR
US$225.75
Charter Communications
7D
-5.6%
1Y
-36.1%
WMG
US$26.90
Warner Music Group
7D
-7.9%
1Y
-20.4%

WMG: AI Threats Will Ultimately Support Stronger Long Term Cash Generation

Analysts have slightly trimmed their price target on Warner Music Group to $37.44, reflecting a modestly higher discount rate and a small uptick in expected profit margin, while also factoring in fresh views on AI related risks and recent mixed research commentary. Analyst Commentary Recent research on Warner Music Group reflects a mix of optimism around the core business and caution around emerging risks, especially related to AI generated music.
DIS
US$105.05
Walt Disney
7D
-1.9%
1Y
-6.1%

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GOOGL
US$312.90
Alphabet
7D
3.3%
1Y
85.7%

Google - The world's first "Full Stack AI Sovereign"

When talking about AI models, people often think of the three core layers to it: The Chip (GPUs) - the hardware layer that allows parallel processing, allowing AI models to perform thousands of mathematical calculations and complex reasoning simultaneously. The Cloud - the infrastructure layer that allows developers to train and deploy the AI model at scale.
SATS
US$107.01
EchoStar
7D
-6.5%
1Y
268.9%
OMC
US$82.71
Omnicom Group
7D
17.9%
1Y
-1.3%

OMC: AI Search Collaboration And Platform Upgrades Will Support Future EPS Upside

Omnicom Group's updated fair value estimate has inched down from $101.10 to $99.70 as analysts balance a higher assumed P/E of about 13.8x against more conservative revenue growth and discount rate inputs, while recent price target moves ranging from $82 to $115 highlight differing views on the stock's risk reward trade off. Analyst Commentary Recent research on Omnicom Group reflects a split view on upside potential versus execution risk, with updated price targets clustering between US$82 and US$115.
TMUS
US$218.66
T-Mobile US
7D
2.5%
1Y
-17.0%
META
US$653.69
Meta Platforms
7D
1.6%
1Y
-3.0%

META: AI Data Center Spend And Regulatory Pressures Will Shape Balanced Return Prospects

The updated analyst price target for Meta Platforms is $722.91. Analysts broadly attribute this to expectations of stronger revenue growth and higher profit margin assumptions, partly offset by a lower future P/E multiple and a slightly higher discount rate.
RBLX
US$68.07
Roblox
7D
7.9%
1Y
13.9%

RBLX: Engagement Trends And Content Cycles Will Drive Earnings And Regulatory Risk

Analysts have trimmed their fair value estimate for Roblox to $67, reflecting a series of lower Street price targets as they moderate assumptions on revenue growth, long term margins and future P/E, while still acknowledging supportive engagement trends and select rating upgrades. Analyst Commentary Recent research on Roblox has leaned cautious, with many Bearish analysts cutting price targets even as some firms highlight constructive engagement trends and select upgrades.
CMCSA
US$30.79
Comcast
7D
-2.6%
1Y
-12.3%

CMCSA: Future Returns Will Hinge On Risky Warner Bros Bid Uncertainty

Comcast's analyst price targets have edged lower overall, with several firms trimming their views by $1 to $4 as they factor in the Versant spin off and lingering pressure in legacy pay TV. This is partly offset by at least one small upward revision of $0.21 tied to more constructive views on the core business.
NFLX
US$82.70
Netflix
7D
7.4%
1Y
-14.1%

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.
SPOT
US$463.28
Spotify Technology
7D
-3.0%
1Y
-23.2%

SPOT: 2026 U.S. Price Hike Will Offset Rising AI Subscription Risk

Analysts have trimmed their average price target on Spotify, reflected in a lower fair value estimate of $662.14 from $733.44, as they factor in higher perceived AI related risk to paid streaming, modestly softer growth assumptions, a richer discount rate, and a more conservative future P/E multiple, despite higher projected profit margins. Analyst Commentary Recent research on Spotify Technology points to a mixed but highly engaged analyst backdrop, with multiple firms revisiting their models around AI risk, pricing, and execution on product initiatives.
BIDU
US$132.65
Baidu
7D
-3.8%
1Y
48.8%

BIDU: AI Cloud And Chip Spinoff Are Expected To Reprice Shares

The analyst fair value estimate for Baidu has moved from $151.99 to $176.93, as analysts point to a higher assumed future P/E multiple and a growing emphasis on Baidu's AI and chip assets, including the Kunlun business and cloud, supported by a series of recent price target raises and upgrades. Analyst Commentary Recent Street research on Baidu has turned more constructive, with several firms lifting price targets and, in some cases, upgrading ratings as they reassess the value of Baidu's AI, cloud, and chip assets.
TTWO
US$207.31
Take-Two Interactive Software
7D
2.9%
1Y
-0.4%

TTWO: GenAI Efficiency And GPU Adoption Will Drive Future Repricing

Analysts have raised their implied fair value estimate for Take-Two Interactive Software from $275.00 to $301.00, citing recent price target increases across the Street along with updated assumptions for discount rate, revenue growth, profit margin, and future P/E multiples. Analyst Commentary Recent Street research around Take-Two Interactive Software has leaned constructive, with several bullish analysts revisiting their models, price targets, and ratings in light of updated assumptions on growth, profitability, and valuation multiples.