Key Takeaways
- Ranks top 500 U.S. companies by total revenue.
- Includes both public and private U.S. firms.
- Revenue threshold around $7 billion to qualify.
- Widely used benchmark for U.S. corporate size.
What is Fortune 500?
The Fortune 500 is an annual list ranking the 500 largest U.S. corporations by total revenue, published by Fortune magazine since 1955. It includes both publicly traded and private companies, reflecting the economic landscape across various industries.
This list differs from indexes like the S&P 500 by focusing solely on revenue, rather than market capitalization or profitability, offering a unique perspective on corporate scale and influence in the U.S. economy.
Key Characteristics
The Fortune 500 highlights the biggest U.S. companies with several defining features:
- Revenue-Based Ranking: Companies are ranked strictly by total annual revenue reported in financial statements, including subsidiaries and discontinued operations.
- Diverse Industries: It covers sectors from manufacturing and retail to technology and financial services, showcasing the breadth of the American economy.
- Eligibility Requirements: Companies must be incorporated and operate in the U.S., be for-profit entities such as a C corporation, and publicly disclose financial data.
- Annual Update: The ranking is refreshed yearly using the most recent fiscal data, allowing you to track shifting corporate dominance over time.
How It Works
The Fortune 500 is compiled by collecting revenue data from eligible companies’ fiscal reports, typically ending before March 31 of the ranking year. This ensures the list reflects the latest financial performance across businesses.
Revenue figures are aggregated from all business operations, including subsidiaries, to capture total scale. Service-oriented companies were included after 1994, broadening the list beyond traditional manufacturing to include firms like Amazon and Alphabet.
Examples and Use Cases
The Fortune 500 includes well-known companies across sectors, serving as a benchmark for investors, analysts, and business strategists:
- Retail and E-commerce: Walmart consistently ranks at the top due to its massive retail footprint.
- Technology Giants: The list features notable GAFAM stocks like Alphabet and Amazon, reflecting the tech sector’s growing influence.
- Healthcare: UnitedHealth Group is a leading healthcare services company, showcasing the sector's size in the economy.
Important Considerations
While the Fortune 500 provides insight into company size by revenue, it does not measure profitability or market value, so it should be used alongside other metrics like earnings and stock performance for investment decisions.
Additionally, the list primarily covers large corporations meeting strict disclosure requirements, meaning smaller or emerging companies are excluded despite potential growth. Understanding these limitations can guide your analysis of U.S. corporate health and trends.
Final Words
The Fortune 500 offers a clear snapshot of the largest U.S. companies by revenue, reflecting shifts in industry leadership and economic trends. Keep an eye on annual updates to track emerging sectors and adjust your business or investment strategies accordingly.
Frequently Asked Questions
The Fortune 500 is an annual ranking of the 500 largest U.S. companies by total revenue, published by Fortune magazine since 1955. It includes both publicly traded and privately held companies across various industries.
Companies on the Fortune 500 are ranked solely based on their total revenues for the fiscal year. The revenue figures include consolidated subsidiaries and discontinued operations, with data sourced from company filings.
To qualify, a company must be incorporated and operate in the U.S., be for-profit, file financial statements with a U.S. government agency, have revenue placing it in the top 500, and have filed statements for at least three quarters of the current fiscal year.
Yes, since 1994 Fortune expanded the list to include service companies, which significantly increased the diversity of industries represented, including technology, retail, and financial services.
In recent years, companies typically need to have around $7 billion in annual revenue to qualify for the Fortune 500 list.
For the 2025 list, the top three companies are Walmart, Amazon, and UnitedHealth Group, with other notable companies like Berkshire Hathaway and Alphabet also ranking highly.
The Fortune 500 ranks companies based on total revenue regardless of public or private status, while the S&P 500 ranks only public companies based on market capitalization.
The first Fortune 500 list was published in 1955 by Fortune editor Edgar P. Smith to provide a benchmark for analyzing the largest U.S. corporations and track economic trends over time.
