What Is the Fortune 500?
Let me explain the Fortune 500 directly: it's an annual list from Fortune magazine that ranks the 500 largest U.S. companies based on their revenue from the previous fiscal year. I compile this list every year, focusing on both public and private for-profit companies. You can find it online or in the print edition, and it's something people watch closely. If you're a company on this list, it's a big deal—it's seen as a sign of prestige.
Key Takeaways
Here's what you need to know: The Fortune 500 lists 500 of the biggest U.S. companies by total revenues for their fiscal years, published by Fortune magazine. Making the cut means you're viewed as a high-quality firm. We've been doing this since 1955, and in 2024, Walmart held the top position for the 12th year in a row.
Understanding the Fortune 500
Fortune magazine started in 1929, founded by Henry Robinson Luce, and the first issue came out in 1930. It's now one of the top business publications globally. It used to be monthly, but since 2021, it comes out six times a year, with a strong online presence too.
We put together the first list of top American companies in 1955—public and private. Editor Edgar P. Smith created it to gauge the size and power of U.S. businesses when America's economy was leading the world. It started as the Fortune Industrial 500 and got shortened to Fortune 500.
Fortune 500 Criteria
To qualify, companies must be incorporated and operating in the U.S., and they have to file financial statements with government agencies. This covers both publicly traded and privately held firms.
From those, we select the 500 with the highest total revenues based on their 10-K filings or similar statements, then rank them starting with the highest revenue. We exclude private companies that don't file, foreign corporations, consolidated American companies, and those without full statements for at least three quarters of the fiscal year.
Tip for Investors
Many Fortune 500 companies are in the S&P 500 index, so if you're looking to invest in them, consider an S&P 500 index fund.
Lots of Changes Since 1955
The list has transformed since the first one. Over 2,200 companies have appeared on it throughout its history. Things like mergers, acquisitions, production shifts, and bankruptcies remove companies. Recessions can wipe out entire sectors. This list often shows you how the economy is doing and what's in demand.
Fortune 500 2024
In 2024, Walmart claimed the top spot again, for the 12th year straight, with $648 billion in revenue. Amazon was second at $575 billion, Apple third at $383 billion, followed by UnitedHealth Group and Berkshire Hathaway in fourth and fifth.
The most profitable were Apple, Berkshire Hathaway, and Alphabet. Fourteen new companies joined, including DoorDash, First Citizens BancShares, and Monster Beverage.
The History of the Fortune 500
As I mentioned, Edgar P. Smith, an assistant managing editor at Fortune, came up with the idea, and it became this popular annual feature.
Originally, it only included manufacturing, mining, and energy sectors, so many big names were left out. In 1955, General Motors led with $9.8 billion, and Copperweld Steel was last with $49.7 million.
The big shift happened in 1995 when we combined all sectors. This added service companies, making up 291 of the 500 that year. Three services even hit the top 10: Walmart fourth, AT&T fifth, Sears Roebuck ninth. Without this, Walmart wouldn't have dominated the top spot.
Who is #1 on Fortune 500?
For 2024, Walmart is number one, marking 12 years as the top revenue generator in the U.S.
What Makes You a Fortune 500?
You need to be a for-profit U.S.-based company filing financial statements with a U.S. government agency, and then rank among the top 500 by revenue for the last fiscal year.
Is Fortune 500 a Big Deal?
Yes, generating that much revenue means you have significant reach and popular products or services—it's a major achievement.
The Bottom Line
The Fortune 500 classifies the biggest U.S. revenue generators annually. Both public and private companies can make it, and it's a badge of honor. Aim to get on it, and better yet, rank high—the top is the one with the most revenue from the prior year.
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