Everything really is bigger in Texas, including the corporate headquarters and the revenue numbers that make accountants need to double-check their calculators. The Lone Star State has become America's undisputed business champion, hosting 55 Fortune 500 headquarters and building an economy worth $2.6 trillion that would make most countries jealous.
The Texas-sized titans leading the pack
Let's start with the company that makes more money than some small nations: ExxonMobil. Based in Spring after ditching Irving for a 385-acre megacampus, this energy behemoth pulls in $339.2 billion annually with 64,000 employees worldwide. To put that in perspective, that's more revenue than the GDP of countries like Denmark or Malaysia. Their new campus houses nearly 10,000 employees, which is basically a small city devoted entirely to finding and refining dead dinosaurs (okay, technically it's ancient plant matter, but dinosaurs sound cooler).
Not to be outdone in the "we make absurd amounts of money" department, McKesson Corporation in Irving quietly dominates as Texas's second-largest company by revenue. This healthcare distribution giant generates $309 billion annually while employing over 50,000 people globally. Most folks have never heard of McKesson, but they're the reason your pharmacy actually has medications in stock. They help patients save over $8.8 billion annually on medications, which is nice considering how much everything else in healthcare costs.
Then there's AT&T, the Dallas telecommunications titan that somehow manages to generate $122.3 billion in revenue despite everyone complaining about their cell service. With 150,000 employees, they're one of America's largest employers and have been connecting Texans (and dropping their calls) since the days when phones had cords.
The newcomers making waves
Chevron recently joined the Texas party, relocating from California and bringing their $202.8 billion in annual revenue to Houston's already impressive energy cluster. It's like the popular kid transferring schools and immediately joining the cool crowd. Combined with Phillips 66 ($145.5 billion), ConocoPhillips ($57.4 billion), and Enterprise Products Partners ($56.2 billion), Houston's energy companies generate over $1 trillion in combined revenue. That's trillion with a T, folks.
Energy still rules the roost
Houston remains the undisputed energy capital with 26 Fortune 500 companies calling it home. The city has more energy executives per square mile than anywhere else on Earth, and you can't throw a breakfast taco without hitting someone who works in oil and gas.
But here's the plot twist that nobody saw coming: Texas isn't just about oil anymore. The state generates 26% of America's wind power and has seen solar capacity explode by 7,016% since 2014. Yes, that's a real number, not a typo. Texas is basically playing both sides of the energy game and winning at both.
The traditional energy companies aren't sitting still either. They're adapting faster than you can say "energy transition," investing in everything from hydrogen production to carbon capture. It turns out that having billions in cash flow gives you some flexibility to try new things.
Tech companies discover there's life beyond Silicon Valley
Remember when Austin was just known for music and weird people? Well, now it's known for music, weird people, and trillion-dollar tech companies. Tesla moved its headquarters to Austin in 2021, bringing along its $1.009 trillion market cap and over 12,000 local employees. Elon Musk apparently decided that California taxes were cutting too deeply into his rocket money.
The Austin Gigafactory isn't just big; it's absolutely massive. We're talking about a facility that makes other factories look like backyard sheds. They're pumping out electric vehicles faster than Austin is pumping out new apartment complexes, which is really saying something.
Homegrown tech success stories
Not all of Texas's tech giants are California transplants playing tax refugee. Dell Technologies, founded by Michael Dell in his University of Texas dorm room back in 1984, proves that Texas can grow its own tech titans. The Round Rock-based company generates $95.6 billion annually and employs 108,000 people worldwide.
Dell's recent financial performance has been particularly impressive, with infrastructure solutions revenue growing 29% and an AI server backlog worth $9 billion. Apparently, everyone wants computers that can think for themselves now, which is either exciting or terrifying depending on how many sci-fi movies you've watched.
Oracle made headlines in 2020 by moving to Austin, though they've recently announced plans to relocate again to Nashville. It's like corporate musical chairs, but with billions of dollars and thousands of jobs at stake. Despite the upcoming move, Oracle maintains significant Austin operations because, let's face it, once you've tasted Austin's breakfast tacos, it's hard to completely leave.
Texas Instruments in Dallas keeps the tech momentum going with $15.64 billion in revenue. They've been making calculators and chips since before it was cool, proving that sometimes slow and steady really does win the race.
More than oil and circuits
While energy and tech grab headlines, Texas's business diversity is what really makes the state's economy bulletproof. Well, as bulletproof as any economy can be in a world where cryptocurrency exists and people trade digital pictures of monkeys.
H-E-B, the San Antonio grocery chain that Texans defend more fiercely than the Alamo, employs over 160,000 people and generates about $46 billion in annual revenue. Founded in 1905 with a $60 investment, H-E-B has become a Texas institution. They donate 5% of pre-tax profits to charity and somehow manage to make grocery shopping feel like a cultural experience. Where else can you buy both sushi and cowboy boots?
Taking to the skies
The Dallas-Fort Worth area hosts both American Airlines and Southwest Airlines, because apparently everything in Texas needs to be competitive. American Airlines brings in $54.2 billion in revenue with 135,000 employees, while Southwest contributes $27.5 billion with 72,000 employees.
These companies benefit from:
- DFW Airport's massive size
- Central location for domestic routes
- No state income tax
- Access to global markets
- Year-round flying weather (mostly)
- Proximity to aerospace suppliers
The aviation sector extends beyond passenger airlines. Texas hosts 2.21 million aerospace and defense jobs that pay wages 50% above the national average. That's a lot of people building things that fly, and they're getting paid well to do it.
Money, money everywhere
Charles Schwab shocked the financial world in 2021 by relocating to Westlake from San Francisco, bringing $20.5 billion in revenue and $10.1 trillion in client assets. That's trillion again, in case you're keeping track of how many times that word appears when discussing Texas businesses.
The company's 70-acre campus in Westlake showcases what happens when financial services companies escape California's tax rates. They build massive complexes and hire thousands of people who are probably thrilled to afford actual houses instead of sharing a studio apartment with three roommates and someone's emotional support peacock.
Austin's fintech scene has exploded to include 260 fintech companies, creating a critical mass of financial innovation. These aren't just your grandfather's banks; they're creating apps that make managing money as easy as ordering takeout, which is both convenient and slightly concerning for those of us with poor impulse control.
Why everyone's moving to Texas
The mass corporate migration to Texas isn't just about cowboy hats and BBQ, though those certainly don't hurt. The state offers concrete advantages that make CFOs smile and shareholders do little happy dances.
First, there's the tax situation. Texas has no corporate or personal income tax, which is like Christmas morning for businesses used to California's 13.3% top rate or New York's 10.9%. Instead, Texas collects a franchise tax of just 0.375% for retail businesses and 0.75% for others. If your business makes less than $2.47 million, you pay nothing. Zero. Nada. It's enough to make a tax accountant weep with joy.
The human factor
Texas adds 1,000 new residents daily and has led the nation in population growth for 10 consecutive years. That's not just more traffic on I-35 (though there's definitely that); it's a constantly expanding workforce and customer base.
The state's 148 higher education institutions enroll 1.45 million students, creating a pipeline of talent that helps explain why Houston and Dallas retain over 70% of their graduates. Apparently, once students experience Texas, they're reluctant to leave. Must be the breakfast tacos. Or the jobs. Probably both.
Texas has been a right-to-work state since 1947, providing the workforce flexibility that many businesses value. This policy remains controversial, but it's undeniably part of the business-friendly package that attracts corporations.
Infrastructure that actually works
Texas doesn't mess around with infrastructure. The state operates:
- Twenty-one seaports handling 563 million tons
- The nation's largest rail network (10,400 miles)
- Six of America's 50 busiest airports
- Massive energy generation capacity
- Extensive pipeline networks
- Growing renewable energy infrastructure
All this infrastructure excellence means businesses can actually move their products efficiently, which seems basic but apparently isn't guaranteed everywhere.
The economic impact is staggering
Texas's economy has grown to $2.6 trillion, making it larger than entire countries like Brazil, Italy, and Canada. If Texas were an independent nation, it would have the world's 8th largest economy. Not bad for a state that started with cattle and cotton.
The numbers tell an impressive story. In fiscal 2024, Texas collected $6.86 billion in franchise taxes and $47.16 billion in sales tax, funding everything from schools to roads without touching anyone's paycheck. It's like financial magic, except it actually works.
Business formation continues at a breakneck pace. Texas attracted 1,368 qualified capital investment projects in 2024, more than double second-place Illinois. Another 125,000 new business entities joined the party, because apparently everyone wants a piece of the Texas pie.
The relocation statistics are equally impressive. Texas captured 96 headquarters relocations in 2024, representing 25% of all U.S. corporate moves. Dallas alone has gained 100 new headquarters since 2018, while Austin added 81. At this rate, they'll need to start building office towers in the Gulf of Mexico.
What's next for the Lone Star State?
Looking ahead, 78% of Texas executives remain optimistic about 2025, expecting continued growth despite whatever weirdness the global economy throws their way. The Dallas Federal Reserve forecasts 1.9% employment growth, which might not sound like much until you realize that's happening on top of an already massive base.
Emerging sectors promise to diversify Texas's economy even further. Samsung's semiconductor facility in Taylor represents just the beginning of a tech manufacturing boom. The Texas CHIPS Office is working to make the state a semiconductor powerhouse, because apparently dominating energy and aerospace isn't enough.
Clean energy technologies, from hydrogen production to geothermal development, promise to extend Texas's energy leadership into new domains. The AI sector is exploding in Austin, with startups popping up faster than food trucks at a music festival.
For the third consecutive year, Texas has been named the "Best Business Climate" in the nation. That's not just marketing fluff; it's backed by billions in investment and millions of jobs.
The bottom line
Texas has created something special: a business environment where century-old energy giants thrive alongside cutting-edge tech startups, where you can build semiconductors in the morning and wind turbines in the afternoon, where the lack of income tax leaves more money for breakfast tacos and business expansion.
From ExxonMobil's massive revenues to H-E-B's community focus, from Tesla's innovation to American Airlines' global reach, Texas businesses demonstrate that success here isn't limited to any single industry. Instead, the state has built an ecosystem where companies of all types can grow, compete, and occasionally enjoy some excellent BBQ.
The diversity and scale of Texas businesses isn't just impressive; it's reshaping the American economy. As more companies discover the advantages of doing business in Texas, from the business-friendly policies to the booming population to the breakfast tacos (okay, maybe the tacos aren't officially an economic factor, but they should be), the state's influence will only grow.
Whether you're running a Fortune 500 company or a food truck, Texas offers something increasingly rare: the freedom to build, grow, and succeed on your own terms. Just remember to budget for air conditioning. You're going to need it.
