|Two years ago, a third of the top 100 fastest-growing companies in the world were from the financial sector. But now, on the 38th annual Fortune 100 Fastest-Growing Companies ranking, it appears the sector’s reign is over with only nine financial companies making the list.
It was the industrial sector that came out on top with 22 companies placing on the list, including the debut of Tesla (No. 2). Industrials led all sectors with a 108% three-year average annual earnings growth rate.
The companies featured on the fastest-growing companies list, which ranks companies based on growth in revenue, profits, and stock returns, are worth a combined $4 trillion in market capitalization.
Some other highlights from this year’s list: Builders Firstsource, the largest residential construction materials supplier in the U.S., nabbed the top spot on the list. The Texas-based company brought in $20.9 billion in revenue in the four quarters before April 2023 and has a three-year average annual revenue growth rate of 55%. Texas passed California as the home U.S. state for the highest number of fastest growers, with 16 companies headquartered there (including three of the top four), compared to California’s 11.
After notably falling off in 2022, tech giants Meta, Amazon, and Netflix did not return to the list. This year, Alphabet also departed, ending a three-year run on the ranking. But technology companies continued to be a strong (albeit shrinking) presence, with 17 tech companies claiming spots, down from 21 last year.
To find out more about the companies winning the growth game, check out the 2023 100 Fastest-Growing Companies list.