# Fortune 500: Definition, Ranking Criteria, & Insights

![Fortune 500: An annual list of the 500 largest U.S. companies based on revenues.](https://www.investopedia.com/thmb/8Kg_5K2LopU86Rimy6GpgTa8sqg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Fortune500_final-9d0e75ca81264de5b0d5a6faba68edd7.png)

*— Investopedia / Michela Buttignol*

> **Definition**
>
> The Fortune 500 is an annual list published by Fortune magazine that ranks the 500 largest U.S. companies by revenue for the previous fiscal year.

## What Is the Fortune 500?

The Fortune 500 is an annual list of the 500 biggest United States companies. It was first published by _Fortune_ magazine in 1955 and ranks public and private for-profit companies based on their [revenue](https://www.investopedia.com/terms/r/revenue.asp) from the previous [fiscal year](https://www.investopedia.com/terms/f/fiscalyear.asp).

The Fortune 500 list is published online and in the print edition of the magazine and is closely followed in the business community. Making the list and being named a Fortune 500 company is widely considered to be a mark of prestige. Service industry companies represent a growing component of the annual list, reflecting the U.S.' transition to a service-led economy.  

### Key Takeaways

*   The Fortune 500 ranks the largest U.S. companies by annual revenue, both public and private.  
    
*   The list is compiled and published annually by Fortune magazine, dating back to 1955.  
    
*   Companies must be U.S-based and file financial statements to qualify for inclusion.  
    
*   Walmart topped the Fortune 500 in 2024, marking its twelfth consecutive year as number one.  
    
*   The list mirrors economic shifts and trends, reflecting the U.S. economy's strength and demand patterns.

## Exploring the Criteria and Importance of the Fortune 500

_Fortune_ was founded in 1929 by Henry Robinson Luce. The first issue came out in 1930 and the magazine has become a leading business [publications](https://www.investopedia.com/guide-to-financial-literacy-4800530). The magazine was originally published monthly and now, since 2021, is issued six times a year. _Fortune_ also has a major presence online.

In 1955, the magazine first listed America's most successful [public and private](https://www.investopedia.com/ask/answers/difference-between-publicly-and-privately-held-companies/) companies. Editor Edgar P. Smith created it to measure U.S. business size and power when America was economically envied worldwide. Originally called the Fortune Industrial 500, the name of the list was later shortened to Fortune 500.

### Key Criteria for Fortune 500 Inclusion

The Fortune 500 focuses on companies that are [incorporated](https://www.investopedia.com/terms/i/incorporate.asp) and operate in the United States and file financial statements with government agencies. This includes companies that are both [publicly traded](https://www.investopedia.com/terms/p/publiccompany.asp) and [privately held](https://www.investopedia.com/terms/p/privatecompany.asp).

From this pool of companies, the 500 that register the highest total revenues for their respective fiscal years as reported on their [10-K](https://www.investopedia.com/terms/1/10-k.asp) filings or comparable financial statements make the list. The list ranks them, with the top spot going to the company with the highest revenues.

Private companies that don't file financial statements with government agencies and foreign corporations are excluded, as are American companies [consolidated](https://www.investopedia.com/terms/c/consolidation.asp) by other companies and those that neglect to report full financial statements for at least three quarters of the current fiscal year.

> **Tip**
>
> A lot of the Fortune 500 appear in the S&P 500 index, so consider an S&P 500 index fund if you want to invest in many of these companies.

### Evolution of the Fortune 500 Since 1955

The list has changed dramatically from the very first Fortune 500. More than 2,200 American companies have been featured on the list over the course of its history.

[Mergers and acquisitions](https://www.investopedia.com/terms/m/mergersandacquisitions.asp) production shifts, and [bankruptcies](https://www.investopedia.com/terms/b/bankruptcy.asp) have removed companies from the list. A [recession](https://www.investopedia.com/terms/r/recession.asp) can also knock out companies in different sectors. The Fortune 500 list can often be a telling sign of how strong the economy is and the types of goods and services that are most in demand.

### 49

The number of companies that have been in the Fortune 500 every year since its inception in 1955.

## Highlights from the 2024 Fortune 500 List

In 2024, Walmart took the top spot on the Fortune 500 list for the 12th consecutive year. The company earned revenue of $648 billion. Online retailer Amazon took the second spot with revenues of $575 billion. Apple came in third with revenues of $383 billion, while United Heath Group and Berkshire Hathaway ranked in fourth and fifth.

The three most profitable companies on the 2024 list were Apple, Berkshire Hathaway, and Alphabet.

Fourteen companies made the list for the first time in 2024. They include DoorDash, First Citizens BancShares, and Monster Beverage.

## Tracing the Origins: History of the Fortune 500

As noted above, the idea for the list came from Edgar P. Smith, who was an assistant managing editor for _Fortune_. Smith's idea took off and provided the grounds for the popular annual list.

The original Fortune 500 lists contained only companies that were in the manufacturing, mining, and energy [sectors](https://www.investopedia.com/terms/s/sector.asp), limiting inclusion for many big-name companies. In the original 1955 Fortune 500 list, General Motors was the top company with annual revenues of $9.8 billion. The lowest-ranked company, meanwhile, was Copperweld Steel with $49.7 million in annual revenue.

The Fortune 500 underwent its biggest change in 1995. In that year, it combined all sectors on the same list. The new list continued to include companies from the original manufacturing, mining, and energy sectors, but it also included service companies for the first time. The change greatly impacted the future of the Fortune 500 list.

For instance, service companies accounted for [291 of the 500 entries](https://www.latimes.com/archives/la-xpm-1995-04-26-fi-59111-story.html) that year, with three making it to the top 10. Walmart ranked fourth, AT&T was number five, and Sears Roebuck took the ninth spot on the list. Walmart has spent several years at number one—a position it would not have held if this change didn't occur.

## Who is 1 on Fortune 500?

In 2024, the number one spot on the Fortune 500 went to Walmart. The retail giant has now been recognized as the biggest revenue generator in the U.S. for 12 consecutive years.

## What Makes You a Fortune 500?

To be eligible for inclusion, a company must be a for-profit U.S.-based entity that files financial statements with a U.S. government agency. And to make the list, it needs to be among the 500 companies with the highest revenues in the last fiscal year.

## Is Fortune 500 a Big Deal?

Being considered one of the biggest U.S. companies by revenue is a big deal. Bringing in that much money means the company has a lot of reach and that its goods or services are extremely popular,

## The Bottom Line

The Fortune 500 is an annual classification of the biggest revenue generators in the U.S. Any for-profit company can considered for the list, so long as it is based in the U.S. and files financial statements with a U.S. regulator.

Since its launch in 1955, being named to the Fortune 500 is considered a mark of prestige in the business community. Although it was originally limited to manufacturing and mining companies, has since expanded to include the entire business sector. The increasing presence of service-sector companies in the Fortune 500 reflects the changing nature of the U.S. economy.

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