What is the Fortune 500?
The Fortune 500 is an annual ranking of the 500 largest U.S. for-profit companies by total revenue for their most recent fiscal year. Published by Fortune magazine since 1955, the list includes both publicly traded and privately held companies that are incorporated in the United States and file financial statements with U.S. regulators. Inclusion on the list is widely seen as a marker of scale and prestige.
Key takeaways
- Ranks the 500 largest U.S. companies by annual revenue.
- Includes public and private, U.S.-based companies that report financials to U.S. authorities.
- First published in 1955; expanded in 1995 to include service-sector firms.
- The list reflects broader economic shifts and the sectors driving U.S. demand.
- Walmart was No. 1 in 2024 for the 12th consecutive year.
How companies qualify
To be eligible for the Fortune 500, a company must:
* Be a for-profit entity incorporated and operating in the United States.
* File financial statements with a U.S. government agency.
* Rank among the 500 highest in total annual revenue as reported on filings such as 10-Ks or equivalent statements.
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Excluded from the list are foreign corporations, companies that do not file required financial statements, and U.S. firms consolidated into other companies that fail to report standalone revenues.
Tip: Many Fortune 500 firms are also components of the S&P 500. If you want exposure to a broad slice of these large companies, consider an S&P 500 index fund.
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History and evolution
- Origins (1955): The list was created to measure U.S. corporate size and influence. Early editions focused on manufacturing, mining, and energy.
- Major change (1995): Fortune combined all industries into a single list and began including service-sector companies. That change significantly reshaped the ranking and allowed retailers and service firms to rise to the top.
- Ongoing change: Over time more than 2,200 different American companies have appeared on the list. Firms move on and off the list due to mergers and acquisitions, bankruptcies, shifting production, and economic cycles. Forty-nine companies have appeared on every Fortune 500 list since its start.
Highlights from the 2024 list
- Top rankings by revenue:
- 1 — Walmart: $648 billion
- 2 — Amazon: $575 billion
- 3 — Apple: $383 billion
- 4 — UnitedHealth Group
- 5 — Berkshire Hathaway
- Most profitable companies: Apple, Berkshire Hathaway, Alphabet.
- New entrants: Fourteen companies made the Fortune 500 for the first time in 2024, including DoorDash, First Citizens BancShares, and Monster Beverage.
Why the Fortune 500 matters
- Benchmark of scale: Being on the list signals significant market reach, influence, and customer demand.
- Economic barometer: Shifts in the composition of the list — for example, the rise of service and tech firms — reflect larger changes in the U.S. economy.
- Prestige and visibility: Inclusion can affect reputation with investors, partners, and employees.
FAQs
Q: Who was No. 1 in 2024?
A: Walmart, holding the top spot for the 12th straight year.
Q: What does it take to be on the Fortune 500?
A: Be a U.S.-based, for-profit company that files financial statements with U.S. regulators and ranks among the top 500 by annual revenue.
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Q: Is being on the Fortune 500 important?
A: Yes. It indicates substantial scale and market presence and often confers reputational and competitive advantages.
Conclusion
The Fortune 500 remains a highly visible annual snapshot of corporate scale in the United States. From its manufacturing roots to its modern mix of retailers, tech firms, financials, and service companies, the list mirrors the evolving drivers of the U.S. economy and highlights which firms generate the most revenue each year.