Texas has overtaken California in Fortune 500 companies for the first time, as firms continue to leave the Golden State’s increasingly unfriendly business environment.
The shift marks a direct rebuke of Governor Gavin Newsom and state leaders who have remained largely unconcerned with the loss of major employers, even as California continues down a path many businesses view as hostile, despite its standing as the world’s fourth-largest economy.
Over the past year, companies including ExxonMobil, Chevron, Samsung, SpaceX, and X have moved their headquarters to Texas, largely from California. Texas has not only surpassed California in the number of Fortune 500 companies, but also in total revenue, with Texas-based firms generating about $2.8 trillion compared to roughly $2.7 trillion for those based in California.
Texas officially takes the crown in the 2026 Fortune500 list, flipping the script on California.
— Houstonomics (@Houstonomics) June 4, 2026
Headquarters:
• Texas: 57
• California: 56
Total Revenue:
• Texas: $2.8 Trillion
• California: $2.7 Trillionhttps://t.co/GBuyFhvHMi
Texas beats California to reclaim the top spot for Fortune 500 HQs, with Houston leading the state's charge. Tied with Chicago at No. 2 nationally, Houston’s 27 corporate giants will soon become 28 when Oklahoma’s Expand Energy completes its relocation to Spring. https://t.co/01n6IACuTj pic.twitter.com/T3Bvkiga02
— The Tenant Advisor (@CoyDavidsonCRE) June 4, 2026
"Texas is the undisputed headquarters of headquarters," Texas Gov. Greg Abbott said in a press release reacting to the news. "The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works."
Texas ranks #1 in America with 57 Fortune 500 headquarters.
— Governor Abbott Press Office (@GovAbbottPress) June 3, 2026
Companies invest confidently in Texas because of our welcoming business climate, predictable regulatory environment, and skilled, growing workforce. pic.twitter.com/8KdAqc9pn0
This comes as California continues to double down on a business-hostile environment, including consideration of a controversial one-time 5 percent wealth tax on its wealthiest residents, one significant factor driving the ongoing business exodus.
Proponents say the revenue is needed to fund taxpayer-subsidized healthcare and insurance programs, which they attribute to cuts made under the Trump administration.
Governor Gavin Newsom has yet to address the latest development in the state’s continued losses to states like Texas and Florida.