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California is losing the corporate race, Texas has taken the lead

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California – Texas has taken the lead in a corporate race that has been building for years, moving past California to become the new home base for the largest number of Fortune 500 companies in the country.

The shift is narrow, but symbolic. Texas now counts 57 Fortune 500 companies, one more than California’s 56. Together, those Texas-based businesses brought in roughly $2.8 trillion in revenue last year, edging out California’s total of about $2.7 trillion. New York follows in third place with 53 companies and about $2.2 trillion in revenue.

The numbers mark a major moment for a state that has spent years selling itself as a place where large companies can grow with fewer restrictions and lower taxes. That message has helped bring major names such as Tesla, McKesson and Oracle into Texas, adding fresh weight to a business landscape already anchored by long-standing giants including Dell Technologies, Exxon Mobil and AT&T.

Still, the crown does not come without limits. Texas may now lead in the number of Fortune 500 headquarters and total revenue, but California remains ahead in profits and market value, showing that the two states are still competing on different measures of economic power.

The Texas list also shows how widely the state’s corporate strength is spread. Houston remains the clear heavyweight, with 25 Fortune 500 companies, including Chevron, Sysco, Phillips 66, ConocoPhillips and Waste Management. Dallas has 11 companies on the list, among them AT&T, CBRE Group, Southwest Airlines and Texas Instruments. Austin, despite its rise as a technology and finance hub, has only two Fortune 500 headquarters: Tesla and Oracle.

At the top of the Texas rankings are some of the biggest names in American business. McKesson, based in Irving, ranks No. 8 on the Fortune 500 list. Exxon Mobil, headquartered in Spring, follows at No. 9. Chevron, now listed in Houston, ranks No. 21, while Phillips 66 sits at No. 29 and AT&T at No. 35.

Other Texas companies landing high on the list include Valero Energy at No. 40, Dell Technologies at No. 41, Tesla at No. 43, Energy Transfer at No. 53, Sysco at No. 55, Caterpillar at No. 65, ConocoPhillips at No. 75 and Oracle at No. 82.

This year, Texas added three Fortune 500 companies, bringing the state to its highest total since 2010. The corporate growth comes alongside a population boom. Texas added 391,243 residents in 2025, more than any other state, according to the U.S. Census Bureau.

For Texas, the new ranking is more than a bragging point. It reflects a larger economic story: companies, workers and capital continue to move toward the state in large numbers. California is far from losing its power, but for now, the Fortune 500 map has a new center.

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