Statistics · 2026 · Stocks
Tech Stock Statistics (2026)
Information technology is the largest sector in the S&P 500, at 39.9% of the index by weight, as of October 1, 2026. Its 74 companies hold $27.0 trillion in market value, 38.6% of all 497 companies WealthyBud tracks. Nvidia (NVDA) alone has an index weight of 8.5%. Communication services adds 9.8%.
Key takeaways
- Information technology carries 39.9% of the S&P 500’s index weight and 38.6% of total market value across 497 companies.
- The sector earns 25.9% of the index’s net income on 12.9% of its revenue.
- The median tech company has a 17.1% net margin, against 13.2% for the median company in the index.
- The median tech stock trades at 42.3 times earnings, versus 24.6 for the median S&P 500 stock.
- The median tech company grew revenue 13.7% in its latest fiscal year, and 22 of 74 grew more than 20%.
- Communication services holds 9.8% of the index, with a 12.6% median net margin.
How big is the tech sector in the S&P 500?
Information technology is the biggest of the 11 sectors in the S&P 500, with a 39.9% weight in the SPDR S&P 500 ETF holdings file on October 1, 2026. Its 74 companies are worth $27.02 trillion in total market value, 38.6% of the 497 companies with fundamentals in WealthyBud’s data.
1. Tech is 39.9% of the S&P 500 by index weight
Index weight is each sector’s share of the S&P 500 in State Street’s SPY holdings file for October 1, 2026. The 74 Information Technology companies sum to 39.9%. Communication services adds 9.8%, so the two sectors together are 49.7% and the other nine hold 50.2% (WealthyBud data · October 2, 2026).
2. Tech holds $27.0 trillion, 38.6% of total market value
Market cap is share price times shares outstanding across all share classes. The 74 companies add up to $27.02 trillion out of $70.0 trillion for 497 companies. This differs from the 39.9% index weight because index weights follow S&P’s methodology, cover all 501 constituents (not 497) and date from October 1, 2026, not October 2, 2026 (WealthyBud data · October 2, 2026).
3. Tech earns 25.9% of net income on 12.9% of revenue
The sector reported $2.32 trillion in revenue and $0.58 trillion in net income in each latest fiscal year. WealthyBud’s calculation shows its profit share is 2.0 times its revenue share (WealthyBud data · October 2, 2026).
4. State Street counts 74 holdings in its tech fund, matching our 74 companies
The State Street XLK fund page lists 74 holdings as of Oct 1, 2026, and XLK tracks the technology sector of the S&P 500. That matches WealthyBud’s count of 74 Information Technology companies.
5. Context: BEA put the U.S. digital economy at 10.0% of GDP in 2022
The Bureau of Economic Analysis put the digital economy at 10.0% of the U.S. economy, or $2.6 trillion, in 2022, and said its 6.3% annual growth outpaced overall U.S. economic growth of 1.9%, per its digital economy infographic. This is context only: BEA’s measure covers digital activity across all U.S. industries, not S&P 500 companies, and BEA says the account is no longer produced; the last update was December 6, 2023.
Which tech companies are the largest?
Nvidia is the largest tech company, worth $5.66T, followed by Apple at $4.86T and Microsoft at $3.82T. The ten largest hold 74.8% of the sector’s market value, so a few names set the sector’s results. The table below shows each company’s revenue, net margin and P/E.
6. The top three are 53.1% of sector market value
Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT) carry 21.5% of the S&P 500’s index weight (8.45%, 7.30% and 5.76%). They hold 53.1% of Information Technology market cap (WealthyBud data · October 2, 2026).
| Company | Market cap | Revenue | Net margin (GAAP) | P/E |
|---|---|---|---|---|
| Nvidia (NVDA) | $5.66T | $215.9B | 55.6% | 47.1 |
| Apple (AAPL) | $4.86T | $416.2B | 26.9% | 43.4 |
| Microsoft (MSFT) | $3.82T | $331.8B | 40.3% | 28.6 |
| Broadcom (AVGO) | $1.69T | $63.9B | 36.2% | 73.1 |
| Micron Technology (MU) | $1.22T | $37.4B | 22.8% | 142.4 |
| Advanced Micro Devices (AMD) | $1.03T | $34.6B | 12.5% | 237.6 |
| Intel (INTC) | $605.1B | $52.9B | 0.05% | 23,274 |
| Palantir Technologies (PLTR) | $455.2B | $4.5B | 36.5% | 278.5 |
| Cisco Systems (CSCO) | $440.6B | $63.3B | 21.0% | 33.2 |
| Lam Research (LRCX) | $437.4B | $23.2B | 31.3% | 60.2 |
A very high P/E, such as 23,274 for INTC, usually means net income is close to zero. This page reports medians for that reason.
See fundamentals and Investor Scores for 103 large caps
How profitable are tech companies?
The median Information Technology company keeps 17.1% of revenue as net income, against 13.2% for the median company across the S&P 500. Its median gross margin is 57.4%, versus 45.1% for the index. 2 of 74 tech companies lost money in their latest fiscal year.
7. Median net margin: 17.1% for tech, 13.2% for the index
Net margin is GAAP net income divided by revenue for each company’s latest fiscal year, so it includes non-operating gains and losses. The tech median covers 74 companies and the index median covers 496 (WealthyBud data · October 2, 2026).
8. Median gross margin: 57.4% for tech, 45.1% for the index
Many companies do not report gross profit. The tech median covers 56 companies and the index median covers 186 (WealthyBud data · October 2, 2026).
9. 2 of 74 tech companies reported a net loss
CRWD and LITE had negative net income in the latest fiscal year; the other 72 were profitable. LITE’s -230.1% net margin reflects a $7.76 billion loss on debt extinguishment in fiscal 2026; its operating margin was 17.4%, per its 10-K. (WealthyBud data · October 2, 2026).
Among the 38 tech companies with at least $10 billion in revenue, these five had the highest GAAP net margins:
- Western Digital (WDC) earned a 72.9% net margin and a 34.5% operating margin on $12.9B of revenue.
- Sandisk (SNDK) earned a 56.5% net margin and a 61.2% operating margin on $20.2B of revenue.
- Nvidia (NVDA) earned a 55.6% net margin and a 60.4% operating margin on $215.9B of revenue.
- Microsoft (MSFT) earned a 40.3% net margin and a 46.8% operating margin on $331.8B of revenue.
- Broadcom (AVGO) earned a 36.2% net margin and a 39.9% operating margin on $63.9B of revenue.
Net margin includes non-operating items. WDC’s 72.9% includes a $6.50 billion unrealized gain on equity securities, per its 10-K.
How expensive are tech stocks?
The median tech stock trades at 42.3 times earnings, 1.7 times the 24.6 median for the S&P 500. Its median price-to-sales ratio is 7.2, versus 3.3 for the index. Tech also pays less: its median dividend yield is 0.83% among payers.
10. Median P/E: 42.3 for tech, 24.6 for the index
P/E here is market cap divided by latest-fiscal-year net income, for profitable companies only. The tech median covers 72 companies and the index median covers 471 (WealthyBud data · October 2, 2026).
11. 31 of 72 profitable tech stocks trade above 50 times earnings
That is 43.1% of the profitable tech companies. Investors pay more than $50 for each $1 of last year’s profit (WealthyBud data · October 2, 2026).
12. Only 38 of 74 tech companies pay a dividend
Their median yield is 0.83%, against 1.89% among the 355 dividend payers in the index. Dividend payers are 51% of tech companies against 71% of the 497 in the index (355). Yield is the latest annual dividend per share divided by price (WealthyBud data · October 2, 2026).
How fast is tech revenue growing?
The median Information Technology company grew revenue 13.7% in its latest fiscal year, about 2.0 times the 6.9% index median. 22 of 74 tech companies grew revenue more than 20%. Over three years the median compound rate was 9.5% a year.
13. Median revenue growth: 13.7% for tech, 6.9% for the index
Growth compares each company’s latest fiscal-year revenue with the year before, which is 2025 and 2026 depending on the company. 5 tech companies reported lower revenue (WealthyBud data · October 2, 2026).
14. 22 of 74 tech companies grew revenue by more than 20%
The fastest were Sandisk (SNDK) at 175%, Lumentum (LITE) at 83%, and Super Micro Computer (SMCI) at 78%. (WealthyBud data · October 2, 2026).
How does communication services compare?
Communication services is 9.8% of the S&P 500 by index weight, with 20 companies worth $7.55 trillion. Alphabet and Meta Platforms hold 80.3% of that value. The median company here earns a 12.6% net margin, below tech’s 17.1%. Gross margin is not comparable here, because few of these companies report it.
15. Communication services: 20 companies, 9.8% of the index
The sector holds 10.8% of total market value, 7.7% of revenue and 12.6% of net income. Fox Corporation, Alphabet, and News Corporation each have two listed share classes, so State Street’s XLC fund page lists 23 holdings as of Oct 1, 2026 for 20 companies. WealthyBud counts each company once (WealthyBud data · October 2, 2026).
16. Alphabet and Meta Platforms are 80.3% of the sector
Alphabet (GOOGL) is worth $4.20T and Meta Platforms (META) is worth $1.86T, out of $7.55T for the sector. The ten largest hold 96.7% (WealthyBud data · October 2, 2026).
17. Median net margin: 12.6% here, 17.1% in tech
The median Communication Services company has a P/E of 25.4 across 17 profitable companies, against 42.3 for tech. 3 of 20 companies (ECHO, PSKY, and TTWO) lost money. Gross margin is reported by only 1 of 20 companies, so it is not compared (WealthyBud data · October 2, 2026).
18. Median revenue growth: 5.9% here, 13.7% in tech
3 of 20 Communication Services companies grew revenue more than 20%, and 6 reported lower revenue. 9 of 20 pay a dividend, with a median yield of 2.32%. Latest fiscal years run from 2024 (PSKY) to 2026, so growth periods differ (WealthyBud data · October 2, 2026).
| Company | Market cap | Revenue | Net margin (GAAP) | P/E |
|---|---|---|---|---|
| Alphabet (GOOGL) | $4.20T | $402.8B | 32.8% | 31.8 |
| Meta Platforms (META) | $1.86T | $201.0B | 30.1% | 30.7 |
| Netflix (NFLX) | $279.3B | $45.2B | 24.3% | 25.4 |
| Verizon Communications (VZ) | $190.9B | $138.2B | 12.7% | 10.8 |
| Walt Disney (DIS) | $176.6B | $94.4B | 14.2% | 13.1 |
What this means for investors
Your index fund is already a tech bet. Information technology is 39.9% of the S&P 500, and communication services adds 9.8%. A fund that tracks the index, such as SPY, puts 49.7% in the two sectors together. Adding XLK raises that share further. See the technology ETF statistics for fund-level detail.
The sector is concentrated. The three largest companies hold 53.1% of tech market value. See the Magnificent Seven and semiconductor stocks for those groups.
Check each company, not the label. Our stocks hub shows fundamentals company by company.
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