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U.S. Telecom Sector Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies500
  • 7D1.2%
  • 3M9.2%
  • 1Y22.3%
  • YTD3.6%

Over the last 7 days, the Telecom industry has risen 1.2%, driven by gains in Meta Platforms and Alphabet of 3.4% and 1.5%, respectively. Meanwhile, Netflix actually underperformed within the industry, shrinking 6.6% in the last week. In the last 12 months, the industry was up 22%. 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
Thu, 05 Feb 2026US$8.1tUS$1.7tUS$279.1b16.3x29.1x4.9x
Sat, 03 Jan 2026US$7.8tUS$1.6tUS$282.6b16.1x27.4x4.7x
Mon, 01 Dec 2025US$7.8tUS$1.6tUS$282.5b16.5x27.7x4.8x
Wed, 29 Oct 2025US$7.6tUS$1.6tUS$295.4b18x25.7x4.7x
Fri, 26 Sep 2025US$7.5tUS$1.6tUS$286.0b19.4x26.1x4.6x
Sun, 24 Aug 2025US$7.0tUS$1.6tUS$286.8b21.4x24.6x4.3x
Tue, 22 Jul 2025US$6.6tUS$1.6tUS$250.6b17.9x26.4x4.1x
Thu, 19 Jun 2025US$6.4tUS$1.6tUS$250.1b17.4x25.7x4x
Sat, 17 May 2025US$6.1tUS$1.6tUS$247.2b17.5x24.8x3.8x
Mon, 14 Apr 2025US$5.5tUS$1.6tUS$227.2b15.5x24.2x3.5x
Wed, 12 Mar 2025US$5.8tUS$1.6tUS$228.0b16x25.6x3.7x
Fri, 07 Feb 2025US$6.5tUS$1.6tUS$217.1b19.9x30x4.1x
Sun, 05 Jan 2025US$6.1tUS$1.6tUS$189.8b18.8x32.3x3.9x
Tue, 03 Dec 2024US$5.9tUS$1.6tUS$189.7b20.2x31x3.7x
Thu, 31 Oct 2024US$5.7tUS$1.5tUS$185.4b18.3x30.8x3.7x
Sat, 28 Sep 2024US$5.6tUS$1.5tUS$188.3b19.1x29.5x3.6x
Mon, 26 Aug 2024US$5.4tUS$1.6tUS$189.2b18.6x28.5x3.5x
Wed, 24 Jul 2024US$5.4tUS$1.5tUS$191.6b20x28.4x3.6x
Fri, 21 Jun 2024US$5.4tUS$1.5tUS$191.0b16.3x28.2x3.5x
Sun, 19 May 2024US$5.3tUS$1.5tUS$191.8b18.4x27.7x3.5x
Tue, 16 Apr 2024US$5.1tUS$1.5tUS$176.0b18.3x29.1x3.4x
Thu, 14 Mar 2024US$4.9tUS$1.5tUS$175.4b16.9x27.9x3.3x
Sat, 10 Feb 2024US$4.9tUS$1.5tUS$172.4b14.4x28.4x3.3x
Mon, 08 Jan 2024US$4.6tUS$1.5tUS$128.1b15.4x35.7x3x
Wed, 06 Dec 2023US$4.4tUS$1.5tUS$128.1b15.6x34.1x2.9x
Fri, 03 Nov 2023US$4.2tUS$1.5tUS$123.5b12.3x33.8x2.8x
Sun, 01 Oct 2023US$4.2tUS$1.5tUS$104.7b14.1x40.3x2.8x
Tue, 29 Aug 2023US$4.2tUS$1.5tUS$104.0b14.2x40.1x2.8x
Thu, 27 Jul 2023US$4.2tUS$1.5tUS$106.5b15.2x39.2x2.8x
Sat, 24 Jun 2023US$4.1tUS$1.5tUS$107.1b16.9x38.3x2.8x
Mon, 22 May 2023US$4.0tUS$1.5tUS$106.0b17.1x37.6x2.7x
Wed, 19 Apr 2023US$3.8tUS$1.5tUS$115.8b16.7x32.7x2.6x
Fri, 17 Mar 2023US$3.6tUS$1.5tUS$114.5b16.5x31.6x2.4x
Sun, 12 Feb 2023US$3.6tUS$1.5tUS$125.1b19.1x28.5x2.4x
Price to Earnings Ratio

28.5x


Total Market Cap: US$3.6tTotal Earnings: US$125.1bTotal 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 3.5x is lower than the industry's current PS ratio of 4.9x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 31% 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 Market-1.35%
Telecom1.23%
Telecom Services and Carriers12.59%
Wireless Telecom6.56%
Interactive Media and Services1.65%
Media-4.69%
Entertainment-5.97%
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 17.3%, which is higher than its past year's earnings decline of 1.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Media industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings growth rate of 2.0% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 4.7% 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
VZ Verizon CommunicationsUS$47.0119.3%
+US$32.1b		17.1%PE11.5x
T AT&TUS$27.2213.1%
+US$22.2b		11.2%PE8.8x
TMUS T-Mobile USUS$201.798.3%
+US$17.4b		-16.8%PE19x
META Meta PlatformsUS$668.990.04%
+US$6.7b		-5.1%PE28x
CMCSA ComcastUS$30.507.4%
+US$6.2b		-10.1%PE5.5x

Latest News

TTWO
US$200.76
Take-Two Interactive Software
7D
-17.4%
1Y
8.6%
VZ
US$47.01
Verizon Communications
7D
19.3%
1Y
17.1%
RDDT
US$152.69
Reddit
7D
-20.9%
1Y
-31.0%
T
US$27.22
AT&T
7D
13.1%
1Y
11.2%
LBRD.K
US$52.32
Liberty Broadband
7D
22.9%
1Y
-32.2%
DIS
US$107.05
Walt Disney
7D
-2.3%
1Y
-3.2%
NFLX
US$80.16
Netflix
7D
-5.3%
1Y
-20.7%

NFLX: Advertising And International Expansion Will Drive Engagement Despite Warner Deal Uncertainty

Analysts have trimmed their Netflix price targets by around $31 on average, reflected in our fair value update from $1,600.00 to $144.53. They are recalibrating revenue growth expectations, applying a lower future P/E, and factoring in both recent target cuts and fresh Buy initiations that highlight advertising traction, content strength, and potential benefits from international expansion and acquisitions.
SPOT
US$440.53
Spotify Technology
7D
-13.4%
1Y
-29.6%

SPOT: Free Tier Funnel And 2026 U.S. Price Hike Will Support Leadership

Analysts have trimmed their blended price target for Spotify, with our fair value estimate easing from US$748.60 to about US$733.44. This reflects slightly lower assumed future P/E multiples, which more than offset modestly higher long term revenue growth and profit margin expectations following a wave of recent target cuts and rating changes across the Street.
BIDU
US$137.95
Baidu
7D
-12.5%
1Y
55.6%

BIDU: AI Pivot And Chip Spinoff May Not Offset Weak Ad Core

We lift our Baidu fair value estimate to US$106.46 from US$94.75, reflecting analysts' higher price targets tied to expectations for stronger AI, cloud and Kunlun chip contributions, slightly improved revenue growth and profit margins, and a higher assumed future P/E multiple. Analyst Commentary Recent Street research on Baidu points to a generally constructive stance on the stock, with many firms lifting price targets and highlighting AI, cloud, and the Kunlun chip business as key parts of the equity story.
GOOGL
US$333.04
Alphabet
7D
-0.9%
1Y
74.1%

GOOGL: AI Partnership Hype Will Outpace Real Cash Flow Benefits

Alphabet's updated analyst price target reflects a modest fair value adjustment to about $268 per share, with analysts pointing to stronger assumptions for revenue growth, profit margins, and AI related partnerships as key drivers behind the change. Analyst Commentary Across recent research, most commentary on Alphabet centers on AI partnerships, cloud adoption, and the role of Gemini in both consumer and enterprise products.
META
US$668.99
Meta Platforms
7D
0.04%
1Y
-5.1%

Meta Platforms, Inc. (NASDAQ:META) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Feb 01
Meta Platforms, Inc. (NASDAQ:META) Just Released Its Annual Results And Analysts Are Updating Their Estimates
TMUS
US$201.79
T-Mobile US
7D
8.3%
1Y
-16.8%

TMUS: 5G Network Depth And Cash Returns Will Drive Future Upside

Analysts have reduced their T-Mobile US fair value estimate by about $1.40 to $266.82, reflecting recent price target cuts from several firms, along with ongoing expectations related to revenue growth, profit margins and future P/E levels. Analyst Commentary Recent research on T-Mobile US points to a mixed set of views, with some analysts trimming price targets while others edge them higher.
CHTR
US$224.18
Charter Communications
7D
22.6%
1Y
-35.0%
CMCSA
US$30.50
Comcast
7D
7.4%
1Y
-10.1%
TKO
US$206.53
TKO Group Holdings
7D
6.0%
1Y
28.3%
RBLX
US$63.07
Roblox
7D
-16.2%
1Y
-16.4%