In this article we discuss the 5 most valuable IT companies in the world. If you want to read our detailed analysis of the IT industry, go directly to the 15 Most Valuable IT Companies in the World.
5. Accenture plc (NYSE: ACN)
Market Cap: $198.84 billion
Securing the number 5 spot is Accenture plc (NYSE: ACN), an Irish multinational IT professional services company that was established in 2009. Accenture plc (NYSE: ACN) is headquartered in Dublin and has over 569,000 employees worldwide. The company reported a total revenue of $44.33 billion at the on FY 2020. Its current client list includes almost 91 companies included in the Fortune Global 100 list. The company has recently made the news for its acquisition of multiple tech companies like Imaginea Technologies, Infinity Works, and Cygni, in hopes to expand its hybrid cloud first division.
According to a Forrester Research report, Accenture plc (NYSE: ACN) was named the leader amongst all European cybersecurity providers. The company is solidifying its position in the tech industry and has demonstrated strong financial performance since the beginning of FY 2021. For the first quarter of the year, Accenture plc (NYSE: ACN) reported revenues of $13.26 billion showing a 21% year-over-year increase. The company has a market cap of $198.84 billion as of 15th July 2021. Accenture plc (NYSE: ACN) ranks 5th in the list of the 15 most valuable IT companies in the world.
Like Microsoft Corporation (NASDAQ: MSFT), ServiceNow, Inc. (NYSE: NOW), SAP SE (NYSE: SAP), International Business Machines Corporation (NYSE: IBM), Wipro Limited (NYSE: WIT), Alphabet Inc. (NASDAQ: GOOG), Oracle Corporation (NYSE: ORCL) and salesforce.com, inc. (NYSE: CRM), Accenture plc (NYSE: ACN) is one of the most valuable IT companies in the world.
Fiduciary Management Inc., in its Q1 2021 investor letter, mentioned Accenture plc (NYSE: ACN). Here is what the fund said:
“Even great companies can get too expensive. In early January, we sold our long-standing position in Accenture PLC after the company’s valuation exceeded 30 times next 12 months (NTM) earnings per share (EPS). We originally invested in Accenture at the launch of the FMI International strategy at a valuation below 15 times NTM EPS and held the stock for over ten years. We added to the holding numerous times in the early years, growing the position size to as high as 5.5% in late 2014, before dialing it back in recent years as the valuation became less compelling. It is one of the world’s largest information technology services firms, specializing in helping complex, global businesses navigate disruption, and focusing on next-generation services like digital, cloud, and security. For years, the investment allowed FMI to capture the inherently higher growth of technology-related industries (GDP+) without investing directly in pure “invention-oriented” technology companies. Through Accenture we were able to avoid some of the shortfalls of tech investing: technology obsolescence, short product cycles, and subpar return on invested capital (ROIC). It grew steadily, was solidly profitable, capital-light, and generated high returns, all while maintaining a rock-solid balance sheet. It compounded its business value for many years, outperforming the MSCI EAFE indices by over 450% during our holding period. Unfortunately, the market increasingly recognized the company’s positive attributes, and the stock’s discount to intrinsic value slowly evaporated. Despite our admiration for the business, it exceeded our valuation threshold. We will continue to follow the company closely for future opportunities.”
4. salesforce.com, inc. (NYSE: CRM)
Market Cap: $219.152 billion
salesforce.com, inc. (NYSE: CRM) is a California-based cloud-based software company that focuses on customer relationship management services. The company is focused on marketing automation, app development and analytics across several categories. salesforce.com, inc. (NYSE: CRM) ranked at second place in Fortune magazine’s list of the 100 best companies to work for in 2021. The company has over 100,000 customers around the world and reported a total revenue of $21.52 billion as of 2020.
Like Microsoft Corporation (NASDAQ: MSFT), ServiceNow, Inc. (NYSE: NOW), SAP SE (NYSE: SAP), International Business Machines Corporation (NYSE: IBM), Alphabet Inc. (NASDAQ: GOOG), Oracle Corporation (NYSE: ORCL), salesforce.com, inc. (NYSE: CRM), and Accenture plc (NYSE: ACN), salesforce.com, inc. (NYSE: CRM) is one of the most valuable IT companies in the world.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned salesforce.com, inc. (NYSE: CRM). Here is what the fund said:
“We added to our software-as-a-service (SaaS) exposure with the initiation of SaaS leader salesforce.com, which develops software for customer relationship management (we added Workday, which enterprise resource planning applications, last quarter). Saleforce.com is well-positioned in the most attractive end markets in software and will benefit from secular drivers such as remote work and the digital transformation. Salesforce.com is a sustainability leader as well, with a commitment to carbon-neutral cloud, toward which it has set a goal of 100% renewable energy for global operations by fiscal year 2022. The company has a strong focus on equality, in terms of equal rights, pay, education and opportunity. As a data company it has been leading on workforce disclosures and seeks to have 50% of its U.S. workforce made up of underrepresented groups by 2024.”
3. Oracle Corporation (NYSE: ORCL)
Market Cap: $240.81 billion
Oracle Corporation (NYSE: ORCL) focuses on the provision of enterprise information technology solutions. Based in Austin, Texas, the company was founded in 1977 and has since become one of the most valuable IT companies in the world with its innovative cloud-based products and services. The company develops database software & cloud engineered systems. Oracle Corporation (NYSE: ORCL) has recently announced its partnership with fintech provider Everest in hopes to bring blockchain technology to banks around the world. Oracle has already been chosen by Deutsche Bank for a multi-year contract to modernize and accelerate the banks digital transformation.
According to Reuters, Oracle Corporation (NYSE: ORCL) is hoping to double its capital investment in the cloud segment to approximately $4 billion by 2022. The company is showing no signs of slowing down and has earned the number 3 spot in the 15 most valuable IT companies in the world list.
Like Microsoft Corporation (NASDAQ: MSFT), ServiceNow, Inc. (NYSE: NOW), SAP SE (NYSE: SAP), International Business Machines Corporation (NYSE: IBM), Alphabet Inc. (NASDAQ: GOOG), salesforce.com, inc. (NYSE: CRM), and Accenture plc (NYSE: ACN), Oracle Corporation (NYSE: ORCL) is one of the most valuable IT companies in the world.
Ariel Investments, in its Q1 2021 investor letter, mentioned Oracle Corporation (NYSE: ORCL). Here is what the fund said:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
2. Alphabet Inc. (NASDAQ: GOOG)
Market Cap: $1.744 trillion
Google’s parent company, Alphabet Inc. (NASDAQ: GOOG) has earned the number 2 spot in the list of the 15 most valuable IT companies in the world. Although its main subsidiary is Google, Alphabet Inc. (NASDAQ: GOOG) has other subsidiaries as well including Fitbit, Google Fiber, Waymo, Deepmind etc. In January 2020, the company became the fourth American company to reach a market valuation of $1 trillion.
The company’s Google division has shown consistent growth over the past few years and is booming within the cloud computing market due to its robust technologies. Shares of the global search engine have soared by 4.88% in the past month alone outpacing the IT sectors gain. Google’s latest partnership with AT&T has also increased competition for other tech giants like Microsoft and Amazon in the 5G race. As of July 15th, the company had a market cap of $1.744 trillion, making it one of the 15 most valuable IT companies in the world.
Like Microsoft Corporation (NASDAQ: MSFT), ServiceNow, Inc. (NYSE: NOW), SAP SE (NYSE: SAP), International Business Machines Corporation (NYSE: IBM), salesforce.com, inc. (NYSE: CRM), Accenture plc (NYSE: ACN), and Oracle Corporation (NYSE: ORCL), Alphabet Inc. (NASDAQ: GOOG) is one of the most valuable IT companies in the world.
1. Microsoft Corporation (NASDAQ: MSFT)
Market Cap: $2.116 trillion
Microsoft Corporation (NASDAQ: MSFT) is the largest cloud computing company in the world. Established in 1975 by Bill Gates and Paul Allen in a garage, the company is now considered one of the Big Five American tech companies along with Apple, Amazon, Facebook, and Google. Best known for Microsoft Windows operating systems, Microsoft Office suite, and Edge web browsers, Microsoft Corporation (NASDAQ: MSFT) has come a long way and now serves the global software market providing intelligent cloud apps, and advanced computing support powered by AI technology. Microsoft also owns LinkedIn, Skype, Mojang, Github, and aQuantive. The company reported a net income of $153 billion for FY 2020. The company has also entered into an agreement to acquire RiskIQ to expand its portfolio of cyber security services. With a market cap of $2.116 trillion, Microsoft Corporation (NASDAQ: MSFT) ranks first in the list of the most valuable IT companies in the world.
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