The 25 Biggest IT Companies On The 2016 Fortune 500
Bigger And Better Than Ever
The 25 largest North American publicly traded IT companies climbed a combined 170 spots in the 2016 Fortune 500 rankings, as only six companies failed to improve upon their 2015 ranking.
Sales for these 25 IT vendors, distributors and solution providers grew by a total of $79.48 billion in the most recent fiscal year, while profits increased by a combined $17.6 billion. Total employee headcount for the 25 technology titans swelled to more than 2.96 million.
Amazon, Microsoft, Avnet and CDW passed HP, IBM, Tech Data and CSC, respectively, on the list due to their stronger 2015 sales performance, while Cognizant clawed its way into the top 25 after an outstanding year.
Keep reading to learn how the top IT companies fared in this year's Fortune 500.
25. CSC
2016 Fortune 500 Rank: 233 (down 4 spots)
CEO: Mike Lawrie
CSC fell from No. 229 to No. 233 as sales in the company's 2015 fiscal year, which ended March 31, fell 7.9 percent to $12.2 billion. The Tysons, Va.-based company, No. 8 on the 2016 CRN Solution Provider 500, recorded a loss of $8 million, way down from profits of $679 million the year prior. CSC has had an extremely active year, spinning off its $4.1 billion North American public sector business in November and announcing a yet-to-be-completed merger in May with HPE's $18 billion Enterprise Services arm. CSC employs 70,000 people, and has appeared on the Fortune 500 every year since 1995.
24. Cognizant
2016 Fortune 500 Rank: 230 (up 58 spots)
CEO: Francisco D'Souza
Cognizant soared from No. 288 to No. 230 as sales skyrocketed 21 percent in 2015 to $12.4 billion. The Teaneck, N.J.-based company, No. 7 on the 2016 CRN Solution Provider 500, saw profits jump by 12.8 percent to $1.62 billion, while earnings per share also climbed by 12.8 percent. Cognizant spent $2.4 billion to buy health care IT provider TriZetto in 2014, and acquired Oracle cloud channel partner KBACE Technologies in January and a minority stake in human science consultancy ReD Associates in April. Cognizant has 221,700 employees, and has appeared on the Fortune 500 every year since 2011.
23. CDW
2016 Fortune 500 Rank: 220 (up 33 spots)
CEO: Thomas Richards
CDW jumped from No. 253 to No. 220 on the Fortune 500. Sales for the Lincolnshire, Ill.-based company climbed 7.6 percent to $13 billion, while profits skyrocketed by 64.6 percent to $403 million. Earnings per share fared even better, climbing 65.5 percent. The company has aggressively expanded its services capabilities and dramatically grown its cross-border capabilities since closing its acquisition of U.K.-based Kelway in August. CDW employs 8,465, and has appeared on the Fortune 500 list from 2001 to 2007 and every year since 2012.
22. Synnex
2016 Fortune 500 Rank: 212 (up 8 spots)
CEO: Kevin Murai
Synnex climbed from No. 220 to No. 212 on the Fortune 500. Sales slumped by 3.6 percent in fiscal 2015, ended Nov. 30, to $13.3 billion. Profits for the Fremont, Calif.-based distributor climbed 15.8 percent to $209 million compared to the previous year, while earnings per share jumped by 14.7 percent. Sales for Synnex's technology solutions business declined by 6.4 percent in 2014. The distributor has 78,500 full-time and temporary employees worldwide, and has appeared on the Fortune 500 list since 2007.
21. Western Digital
2016 Fortune 500 Rank: 194 (up 11 spots)
CEO: Stephen Milligan
Western Digital jumped from No. 205 to No. 194 despite sales in fiscal 2015, which ended June 30, slumping by 3.7 percent to $14.6 billion. Profits for the Irvine, Calif.-based company sank 9.4 percent to $1.47 billion, while earnings per share fell by 7.5 percent. Western Digital closed its $19 billion acquisition of flash memory chip provider SanDisk, No. 464 on the 2015 Fortune 500, on May 12. Western Digital employs 76,449 people, and has appeared on the Fortune 500 from 1997 to 1999 and every year since 2007.
20. CenturyLink
2016 Fortune 500 Rank: 159 (up 9 spots)
CEO: Glen Post III
CenturyLink climbed from No. 168 to No. 159 despite 2015 sales dipping by 0.7 percent to $17.9 billion. Profits for the Monroe, La.-based company climbed by 13.7 percent to $878 million, while earnings per share grew by 16.2 percent. CenturyLink saw a 7 percent increase in its high-bandwidth data services business in the most recent quarter, but the jury Is still out on whether the vendor will hold onto its data center assets. CenturyLink employs 43,000, and has appeared on the Fortune 500 every year since 2010.
19. Xerox
2016 Fortune 500 Rank: 150 (down 7 spots)
CEO: Ursula Burns
Xerox tumbled from No. 143 to No. 150 as sales dropped by 10.7 percent to $18.7 billion. Profits for the Norwalk, Conn.-based company plummeted by 53.2 percent to $474 million, while earnings per share also tanked by 50.6 percent. Xerox announced in January that it will split into two companies: One focused on document technology and document outsourcing, and the other focused on business process outsourcing (BPO). Former iGate CEO Ashok Vemuri will lead the BPO company once the deal closes this year. Burns will not be taking the CEO position at either company. Xerox employs 143,600, and has been on the Fortune 500 since 1995.
18. Arrow Electronics
2016 Fortune 500 Rank: 119 (up 12 spots)
CEO: Michael Long
Arrow Electronics climbed from No. 131 to No. 119 on the Fortune 500 as sales jumped to $23.3 billion in 2015, up 2.3 percent compared to the previous year. Profits for the Centennial, Colo.-based distributor flatlined, though, dipping 0.1 percent to $498 million. Earnings per share fared better, rising 4.4 percent. Arrow's enterprise computing solutions business outperformed the company as a whole, with sales jumping 5 percent to $8.88 billion. Arrow continues to seek growth through acquisition, purchasing UBM's technical and electronics media business in June for $23.5 million. Arrow employs 18,500 people, and has been on the Fortune 500 since 1995.
17. EMC
2016 Fortune 500 Rank: 113 (up 8 spots)
CEO: Joseph Tucci
EMC climbed from No. 121 to No. 113 on the Fortune 500 as sales climbed 1.1 percent to $24.7 billion. Profits for the Hopkinton, Mass-based company, however, plunged by 26.7 percent to $1.99 billion, with earnings per share also tumbling by 23.5 percent. EMC announced in October a deal to be acquired by Dell for $67 billion in cash and stock, the largest acquisition in the history of the IT industry. Dell will pay $24.05 per share of EMC, and $9.05 per share of tracking stock in VMware. EMC employs 72,000, and has been on the Fortune 500 since 1998.
16. Qualcomm
2016 Fortune 500 Rank: 110 (up 3 spots)
CEO: Steven Mollenkopf
Qualcomm edged up from No. 113 to No. 110 despite a sales decline in fiscal 2015 (ended Sept. 30), dropping 4.6 percent to $25.3 billion. Profits for the San Diego-based company plummeted by 33.8 percent to $5.27 billion, with earnings per share also sinking by 30.8 percent. Qualcomm said in July that it would restructure its operations and aimed to slash up to 15 percent of its full-time employees in order to stay at the forefront of an increasingly competitive mobile chip industry. The company said it employs 33,000 people, and has been on the Fortune 500 from 1999 to 2001 and every year since 2003.
15. Tech Data
2016 Fortune 500 Rank: 108 (down 1 spot)
CEO: Robert Dutkowsky
Tech Data dipped from No. 107 to No. 108 on the Fortune 500 as sales dropped by 4.7 percent in 2015 to $26.4 billion. But profits for the Clearwater, Fla.-based distributor soared by 51.7 percent to $266 million, with earnings per share skyrocketing by 61.1 percent. In May 2015, Tech Data bought professional services and data center provider Signature Technology Group, No. 459 on the CRN Solution Provider 500. Tech Data employs 9,000 people, and has been on the Fortune 500 since 1995.
14. Avnet
2016 Fortune 500 Rank: 102 (up 6 spots)
CEO: Richard Hamada
Avnet jumped from No. 108 to No. 102 on the Fortune 500 as sales increased by 1.5 percent in fiscal 2015, ended June 30, 2015, to $27.9 billion. Profits for the Phoenix-based distributor fared better, climbing 4.8 percent to $572 million while earnings per share also jumped by 5.9 percent. Revenue for Avnet's technology solutions business, however, fell by 3.4 percent to $10.6 billion. Avnet announced in April that it will cut $25 million worth of personnel and other expenses from its technology business after demand for data center hardware and software plummeted. Avnet has 18,800 employees, and has been on the Fortune 500 since 1995.
13. Oracle
2016 Fortune 500 Rank: 77 (up 4 spots)
CEOs: Mark Hurd and Safra Catz
Oracle climbed from No. 81 to No. 77 on the Fortune 500 even though sales dipped by 0.1 percent to $38.2 billion in its fiscal 2015. Profits for the Redwood City, Calif.-based software vendor sunk by 9.3 percent to $9.94 billion, with earnings per share dropping by 7.1 percent. Oracle has claimed big gains in cloud-related software sales, according to Fortune, but it's unclear if and when that would offset declining sales of profitable legacy software licenses. Oracle employs 132,000, and has appeared on the Fortune 500 since 1996.
12. Ingram Micro
2016 Fortune 500 Rank: 64 (down 2 spots)
CEO: Alain Monie
Ingram Micro dipped from No. 62 to No. 64 on the Fortune 500 as sales tumbled by 7.4 percent in 2015 to $43 billion. Profits for the Irvine, Calif.-based distributor plummeted by 19.3 percent to $215 million, while earnings per share sunk by 18 percent. Ingram Micro is expected to go private later this year after its $6 billion acquisition by Chinese conglomerate Tianjin Tianhai closes. Ingram Micro will be the biggest business of Tianjin Tianhai affiliate HNA Group, and will help the logistics entity expand internationally. Ingram Micro has 27,700 employees, and has appeared on the Fortune 500 since 1997.
11. Cisco
2016 Fortune 500 Rank: 54 (up 6 spots)
CEO: Chuck Robbins
Cisco climbed from No. 60 to No. 54 on the Fortune 500 as sales improved by 4.3 percent in fiscal 2015, which ended July 31, to $49.2 billion. Profits for the San Jose, Calif.-based networking vendor jumped by 14.4 percent to $8.98 billion, while earnings per share skyrocketed by 17.4 percent. Cisco has made a series of high-profile acquisitions over the past year, according to Fortune, including a $1.4-billion dollar purchase of Internet-of-things specialist Jasper Technologies and a $635-million dollar buyout of cybersecurity startup OpenDNS. Cisco has 71,833 employees, and has appeared on the Fortune 500 since 1997.
10. Intel
2016 Fortune 500 Rank: 51 (up 1 spot)
CEO: Brian Krzanich
Intel climbed from No. 51 to No. 50 on the Fortune 500 even though 2015 sales dipped by 0.9 percent to $55.4 billion. Profits for the Santa Clara, Calif.-based semiconductor vendor fell by 2.4 percent to $11.4 billion, although earnings per share ticked upward by 0.9 percent. Intel has been trying to solidify its position as an Internet of Things technology supplier, according to Fortune, with the company poaching Murthy Renduchintala from Qualcomm in November to lead its newly-formed IoT division. Intel has 107,300 employees, and has appeared on the Fortune 500 since 1995.
9. Comcast
2016 Fortune 500 Rank: 37 (up 6 spots)
CEO: Brian Roberts
Comcast jumped from No. 43 to No. 37 on the Fortune 500 as sales leapt by 8.3 percent to $74.5 billion. Profits for the Philadelphia-based telecommunications vendor fell by 2.6 percent to $8.16 billion, although earnings per share climbed by 1.3 percent. Comcast's investment in improving customer service and revamping its set-top box line has paid dividends, according to Fortune, with the company adding 53,000 subscribers in just the first three months of 2016. Comcast has 153,000 employees, and has appeared on the Fortune 500 since 1996.
8. Alphabet
2016 Fortune 500 Rank: 36 (up 4 spots)
CEO: Larry Page
Google parent company Alphabet climbed from No. 40 to No. 36 on the Fortune 500 as sales climbed by 4.9 percent to $75 billion. Profits for the Mountain View, Calif.-based search and internet services company soared by 15.6 percent to $16.3 billion, while earnings per share jumped 11 percent. Alphabet's core Google business generated $20.1 billion in revenue during the first quarter of 2016, according to Fortune, with the company's lightweight Chromebook laptops outpacing the shipment of Apple's desktop computers in the United States. Alphabet has 61,814 employees, and has appeared on the Fortune 500 list since 2006.
7. IBM
2016 Fortune 500 Rank: 31 (down 7 spots)
CEO: Virginia Rometty
IBM tumbled from No. 24 to No. 31 on the Fortune 500 as sales plummeted by 12.4 percent to $82.5 billion. Profits for the Armonk, N.Y.-based IT services company improved by 9.7 percent to $13.2 billion, while earnings per share jumped by 12.8 percent. Big Blue reported its sixteenth straight quarter of declining sales last quarter, according to Fortune, as massive declines in its legacy business have yet to be offset by growth in cloud computing, mobility, analytics and security. IBM employs 411,798, and has appeared on the Fortune 500 list since 1995.
6. Microsoft
2016 Fortune 500 Rank: 25 (up 6 spots)
CEO: Satya Nadella
Microsoft jumped from No. 31 to No. 25 on the Fortune 500 as sales grew by 7.8 percent to $93.6 billion. Profits for the Redmond, Wash.-based software vendor, however, nose-dived by 44.8 percent to $12.2 billion, with earnings per share also plummeting by 43.7 percent. Microsoft is trying to convince customers to use more Office 365, its cloud-based application set running on Microsoft’s own data centers, without overly cannibalizing sales of old-fashioned, on-premise Office, Exchange, and other applications, according to Fortune. Microsoft has 118,000 employees, and has appeared on the Fortune 500 list since 1995.
5. Hewlett Packard
2016 Fortune 500 Rank: 20 (down 1 spot)
CEO: Dion Weisler
HP dipped from No. 19 to No. 20 as sales for the 2015 fiscal year, which ended Oct. 31, dropped 7.3 percent to $103.4 billion. That figure includes $52.1 billion in revenue from Hewlett Packard Enterprise, which was spun off as a separate company Nov. 1. Profits for the Palo Alto, Calif.-based computer and office equipment maker sank by 9.2 percent to $4.55 billion, with earnings per share declining by 5.3 percent. Although HP is still a massive company, Fortune said the rise of cloud computing and the weakening personal computer and printer market took a toll on the vendor, which continued to see sales decline each quarter. HP had 287,000 employees, and has appeared on the Fortune 500 list since 1995.
4. Amazon
2016 Fortune 500 Rank: 18 (up 11 spots)
CEO: Jeff Bezos
Amazon leapfrogged from No. 29 to No. 18 as sales skyrocketed by 20.2 percent to $107 billion. Profits for the Seattle-based internet services company came in at $596 million. Amazon has delivered four consecutive quarters of record profits, according to Fortune, with its hardware business taking off thanks to newer, cheaper tablets and the proliferation of the Internet of Things. Specifically, sales of Amazon's Fire tablets outpaced those of Apple’s iPads during Black Friday. Amazon has 230,800 employees, and has appeared on the Fortune 500 list since 2002.
3. Verizon
2016 Fortune 500 Rank: 13 (up 2 spots)
CEO: Lowell McAdam
Verizon jumped from No. 15 to No. 13 as sales climbed by 3.6 percent to $131.6 billion. Profits for the New York-based telecommunications company skyrocketed by 85.8 percent to $17.9 billion, with earnings per share soaring by 80.6 percent. Verizon spent big at the government's Advanced Wireless Services spectrum auction, according to Fortune, grabbing another 181 licenses. And in a move to capture some of the growing digital advertising pie, Verizon snapped up AOL for $4 billion. Verizon has 177,700 employees, and has appeared on the Fortune 500 list since 1995.
2. AT&T
2016 Fortune 500 Rank: 10 (up 2 spots)
CEO: Randall Stephenson
AT&T climbed from No. 12 to No. 10 as sales leaped by 10.8 percent to $146.8 billion. Profits for the Dallas-based telecommunications company soared by 114.4 percent to $13.3 billion, and earnings per share jumped by 99.2 percent. AT&T spent almost $50 million to acquire satellite television provider DirecTV, making the company one of the largest TV subscription service providers in the world. The company also acquired Nextel Mexico and Mexican wireless service provider Iusacell for less than $5 billion to take advantage of high growth projections for Latin America. AT&T has 281,450 employees, and has appeared on the Fortune 500 list since 1995.
1. Apple
2016 Fortune 500 Rank: 3 (up 2 spots)
CEO: Tim Cook
Apple, the largest IT vendor on the Fortune 500, climbed from No. 5 to No. 3 as sales soared by 27.9 percent to $233.7 billion. Profits for the Cupertino, Calif.-based computer and mobile device maker leapfrogged by 35.1 percent to $53.4 billion, while earnings per share skyrocketed by 42.9 percent. After more than a decade of solid growth, Fortune said Apple appeared to finally hit a wall in 2015, with iPhone 6S and 6S Plus upgrades barely outselling their predecessors and sales of the iPad tablet computer continuing to shrink throughout 2015. Apple has 110,000 employees, and has appeared on the Fortune 500 list since 1995.