Texas has the most Fortune 500 companies of any state, according to the 68th annual Fortune 500 list of the largest U.S. corporations, with 53 Fortune 500 corporate headquarters that call the Lone Star State home.
New York, which dropped from No.1 to No.2 on this list, has 51 such companies. California is third with 50 Fortune 500 companies.
In light of the announcement, Governor Abbott took to social media to celebrate the booming Texas economy.
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.
“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 income 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.”
Texas is home to some of the largest and most profitable companies, according to the Fortune 500 list. Chief among them are AT&T, Tesla, ExxonMobil, Dell Technologies, and Valero Energy.
In addition to having the most companies statewide, two Texas cities ranked in the top five municipalities for the areas with the most Fortune 500 companies.
According to the release, Houston has 21 companies and Dallas boasts slightly over half that figure with 11. Houston is home to cash-cow companies like Phillips 66, Sysco, and Hewlett Package Enterprises while Dallas boasts AT&T and Texas Instruments, among others.
President and CEO of the Texas Economic Development Corporation Robert Allen spoke of the heavy Texas presence on the Fortune 500 list and thinks it is a strong indicator of a booming Lone Star economy.
“The presence of these 53 Fortune 500 companies in Texas shows that Texas has a lot to offer both big and small businesses,” Allen said. “And, in turn, they have much to offer Texas.”
Texas is the ninth-largest economy in the world, according to Gross Domestic Product (GDP). Last year, Texas saw a 10.1% increase in the annual rate growth of real GDP in the final quarter of 2021 — compared to the national average of 6.9% — according to data from the Bureau of Economic Analysis released earlier this year.
"Thanks to the hardworking people of Texas, the Lone Star State leads the nation with the largest increase in fourth-quarter GDP," said Gov. Greg Abbott. "This achievement is yet another testament to the prosperous economic climate we have cultivated by developing a highly-skilled workforce, cutting red tape, and investing in our robust infrastructure."
GDP represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year). It is the most commonly used measure of economic activity.
"Texas is pro-business, and there’s a reason these major corporations are choosing to relocate here. We have one of the largest economies in the world, a lower cost of living, favorable tax rates, fewer regulations, and access to top-tier talent," said Ed Curtis, CEO of YTexas.
According to the report, the companies that moved their headquarters to Texas relocated from 17 states and three countries. California had the highest corporate migration with 25 companies choosing to relocate their headquarters to Texas. The United Kingdom represented the most international corporate relocations to Texas (four companies), followed by Israel (three companies).
With so many incoming corporations, it wouldn't be a surprise to see Texas lead the nation in Fortune 500 companies next year, as well.