UC Berkeley and Stanford researchers found in an August 2026 study that S&P 500 firms keeping DEI after President Trump’s January 2025 order performed as well as those rolling it back, in revenue and abnormal stock returns.
Fortune 500 participation in the Human Rights Campaign’s Corporate Equality Index fell from 377 companies in 2025 to 131 in 2026. The pullback predated Executive Order 14173 and accelerated amid increased political and regulatory pressure. The study’s abnormal-return measure strips out general market movements.
Companies also faced legal and regulatory concerns. The EEOC increased scrutiny of DEI programs it believes may violate Title VII and pursued investigations and lawsuits involving employers over allegations of DEI-related discrimination in 2026. Consumer reaction was mixed; roughly six in 10 Americans said businesses with diverse workforces are more profitable and innovative.
