"Business-Friendly Texas" Overtakes California to Lead U.S. in Fortune 500 Company Headquarters

Texas Overtakes California to Lead Fortune 500 List
California Faces Corporate Exodus Amid Billionaire Tax Debate
"The Undisputed Headquarters of Headquarters"

Texas has reclaimed the top spot from California in the ranking of states with the most Fortune 500 companies in the United States.

The American flag and the Texas state flag are flying above the State Capitol in Austin, Texas, USA. Photo by Reuters Yonhap News Agency

According to Yonhap News on June 6 (local time), citing the Los Angeles Times (LAT), the recently released "Fortune 500" list from business magazine Fortune shows that 57 companies headquartered in Texas made the cut—one more than California, which has 56. New York came in third with 53 companies.

The combined revenue of the Fortune 500 companies based in Texas amounts to $2.8 trillion (approximately 4,370 trillion won), the highest in the nation. Notable Texas-based companies in the ranking include pharmaceutical distributor McKesson (8th, Irving), oil major ExxonMobil (9th, Spring), Chevron (21st, Houston), telecom giant AT&T (35th, Dallas), computer manufacturer Dell Technologies (41st, Round Rock), and electric vehicle company Tesla (43rd, Austin).

Texas Governor Greg Abbott emphasized, "Texas has become the undisputed headquarters of headquarters," adding, "The reason global-leading companies invest in Texas is because of its business-friendly climate, predictable regulatory environment, and a growing workforce."

This marks the first time in three years, since 2023, that Texas has retaken the number one spot. California held the lead in both 2024 and 2025. Observers attribute this reversal to the so-called "corporate exodus," as California, known for its progressive stance, has imposed high taxes and stringent regulations, prompting companies to relocate. The trend has intensified recently as California debates a so-called "billionaire tax"—a one-time 5% levy on assets for those with a net worth over $1 billion (about 1.56 trillion won)—leading to further departures of technology firms and other businesses.

Elon Musk bust near Starbase, Texas, USA. Photo by Reuters Yonhap News.

Previously, in 2021, Tesla, led by CEO Elon Musk, moved its headquarters from Palo Alto, California, to Austin, Texas, and companies such as Oracle, Charles Schwab, and Chevron also chose Texas. Recently, it has been reported that Samsung Electronics America is also planning to move its headquarters from New Jersey to Plano, Texas.

However, Fortune 500 companies based in California still lead the nation in profits ($647 billion), market capitalization ($20 trillion), and number of employees (2.8 million), largely because top technology companies by market value, such as Apple and Alphabet (Google's parent company), remain headquartered in the state.

By city, New York City retained its first-place ranking with 43 Fortune 500 companies, followed by Houston, Chicago, Atlanta, and Dallas. Houston (25) and Dallas (11), both Texas cities, ranked second and fifth, respectively.

Meanwhile, this year’s overall number one spot on the Fortune 500 went to Amazon, unseating Walmart, which had held the top position for the past thirteen years. UnitedHealth Group ranked third, followed by Apple and Alphabet.

This content was produced with the assistance of AI translation services.