Innovation has become a prime component for gaining a competitive advantage in the market for all companies. Companies should take into consideration research and development (R&D) expenditure to be innovative. This study investigates the effect of R&D expenditure of some information and technology companies in Turkey as an indication of innovation on their financial performance. Data is collected from seven information and technology companies for 2005-2014 periods. Data is analyzed by the panel data. In this study, the financial performance of the firm is measured by net sales and it is found that Aselsan and Link Computer R&D expenditure have positive impact on sales among seven information and technology companies.