Texas is No. 1 in number of Fortune 500 companies
Texas is the state with the most Fortune 500 companies, according to the 68th Fortune 500 annual list of the largest U.S. corporations, with 53 Fortune 500 corporate headquarters that call the Lone Star State home. With the June 2022 announcement that Caterpillar is moving its global headquarters from Illinois, to Irving, Texas, the number of Fortune 500 companies is now at 54.
New York state dropped from No. 1 to the No. 2 spot with 51 Fortune 500 companies. California, with 50, is in third place. Texas cities also fared well. Houston and Dallas made the list of the nation’s top five municipalities for Fortune 500 companies, with 21 and 11 respectively.
“Texas is the economic engine of the nation,” Gov. Greg Abbott said in making the announcement Tuesday. “Thanks to our unmatched business environment, with no corporate or personal incomes taxes, a highly skilled and diverse workforce, easy access to global markets and reasonable regulatory climate, Texas has more businesses relocating and expanding here in our state than ever before.”
Having so many diverse Fortune 500 companies headquartered in Texas is an important indication of the strength and durability of the state’s economy, said Robert Allen, president and CEO of the Texas Economic Development Corporation, based in Austin.
“CEOs tell us that they relocated to or expanded their business in Texas because of the exceptional business climate and the level of diversification of our industry sectors, which has made a significant impact on their ability to be competitive in domestic and global markets,” Allen said. “The presence of these 53 Fortune 500 companies in Texas shows that Texas has a lot to offer both big and small businesses. And, in turn, they have much to offer Texas.”
The annual Fortune 500 list is based on the revenue from the 2021 fiscal year. The companies on this list are spread out over 232 cities in 37 states. Fortune 500 companies represent two-thirds of the nation’s gross domestic product (GDP) with revenues of $16.1 trillion and employ 29.7 million people worldwide. Texas is the world’s ninth largest economy with $1.985 trillion in GDP.