Fortune 500: Definition, History, and Evolution

Fortune 500 is the definitive annual list of the largest corporations in the United States, ranked by total revenue. For decades, this prestigious ranking has served as a key barometer of American economic health and corporate success. Making the list is a widely recognized mark of prestige and influence in the business community. This article will explore the history, how it works, the significance as an economic barometer, and how it compares to other major business rankings.

What is the Fortune 500?

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the 500 largest U.S. companies by total revenue for their respective fiscal years. Widely considered a mark of prestige, inclusion on this list signifies a company's significant market presence and financial success. The list's core purpose is to measure the size and power of U.S. corporations, reflecting the diverse landscape of the American economy. It showcases major corporate players in various industries, such as technology, healthcare, finance, and retail.

To be eligible for the Fortune 500, a company must be headquartered and operate in the U.S. and file financial statements with a government agency. This includes both publicly traded and private companies if their financial data is publicly available. The primary ranking metric is a company's total revenue as reported in its 10-K filings or equivalent official financial statements, such as SEC filings for public companies or comparable documents for private companies, for its most recent fiscal year. This focus on revenue makes it a direct measure of a company's scale and reach in the market.

The Fortune 500 is an annual list that ranks the 500 largest U.S. companies

History and evolution of the Fortune 500

The concept of the Fortune 500 was created by Fortune editor Edgar P. Smith, and the first list was published in 1955. Initially known as the "Fortune Industrial 500," the list was designed to capture the immense scale of the American industrial base at a time when U.S. economic power was globally recognized. The original list was restricted to companies whose revenues were derived from manufacturing, mining, and energy exploration. Early rankings were dominated by industrial giants like General Motors, U.S. Steel, and DuPont.

The most significant transformation in the list's history occurred in 1995. Recognizing the fundamental shifts in the American economy toward a service-based model, Fortune magazine changed its methodology. A major change occurred in 1995 when the list was expanded to include service companies, which reflected the U.S. economy's transition. This single change brought 291 new entrants to the list, including retailers like Walmart and financial services firms, dramatically altering its composition and providing a more accurate snapshot of corporate America. Today's list reflects this evolution, with technology and service companies like Amazon and Apple frequently appearing in the top ranks alongside traditional industrial firms.

The history and evolution of the Fortune 500 have many important phases

Fortune 500 list in 2025

The 2025 Fortune 500 list, which ranked companies based on their fiscal year 2020 revenue, provided a clear picture of the U.S. economy's leaders. The revenue threshold for inclusion on the 2025 list was $5.4 billion. The combined revenue of companies on the list totaled approximately $15 trillion, representing a significant share of U.S. economic output.

Key highlights from the 2025 list include:

• Top performers: Walmart retained its position at the top for the 12th consecutive year, with Amazon.com and Apple maintaining their places among the top companies. Technology firms such as Amazon and Apple continue to dominate the upper ranks, reflecting ongoing sector growth.
• Top 10 companies: The top ten companies on the 2025 Fortune 500 list were:
  1. Walmart
  2. Amazon
  3. UnitedHealth Group
  4. Apple
  5. CVS Health
  6. Berkshire Hathaway
  7. Alphabet
  8. Exxon Mobil
  9. McKesson
  10. Cigna
• Female CEOs: Continue to break records in leadership roles on the list, with over 40 companies led by women executives, showing a steady increase from prior years.
• Diversity & inclusion initiatives remain a focus, with many companies publicly reporting and striving to improve their standings in these areas. Microsoft continues to lead in diversity rankings, recognized as one of the most progressive companies regarding racial inclusion.

Fortune 500 vs. other business rankings

To fully understand its role, it's important to differentiate the Fortune 500 from other prominent business rankings, such as the Fortune Global 500 and the S&P 500.

Fortune 500 vs. Fortune Global 500

The primary distinction here is the geographic and scope coverage:

• Fortune 500: Exclusively includes U.S.-based corporations.
• Fortune Global 500: Ranks the top 500 corporations worldwide by total revenue for their respective fiscal years, regardless of their country of origin.

Fortune 500 vs. S&P 500

The difference between the Fortune 500 and the S&P 500 lies in their ranking criteria and the types of companies they include.

• Ranking metric: The primary difference is the ranking metric: The Fortune 500 uses total revenue, while the S&P 500 uses market capitalization. Market capitalization is the total value of a company's outstanding shares.
• Company type: The Fortune 500 includes both public and private companies, provided they have publicly available financial data filed with government agencies. The S&P 500, by contrast, is an index that consists only of large-cap, publicly traded companies listed on U.S. stock exchanges.
• Purpose: The Fortune 500 is a ranking of the largest companies, often seen as an indicator of the overall health of the U.S. economy. The S&P 500 is a stock market index used by investors as a benchmark for the performance of the large-cap equities market.

Significance of the Fortune 500 in business and finance

The Fortune 500 list is more than just a ranking; it holds significant weight and influence across the business and financial worlds for several reasons.

There are 3 significant aspects of the Fortune 500 in business and finance

• A barometer of U.S. economic health: The composition and performance of the Fortune 500 serve as a powerful barometer of the U.S. economy's health and evolution. Shifts in the list, such as the rise of technology companies and the decline of certain manufacturing sectors, mirror broader economic trends and transformations. The collective revenues of these 500 companies represent a substantial portion - approximately two-thirds - totalling $19.9 trillion - of the entire U.S. GDP as of 2025.
• Influence on investor perception and market trends: Inclusion in the Fortune 500 serves as a mark of financial success and stability, which attracts investment and boosts a company's stock value. Investors and analysts closely follow the list to identify market leaders, assess industry trends, and gauge corporate performance. The list's annual release can influence investment decisions and shape perceptions of a company's market dominance.
• A benchmark for corporate prestige and growth: For a company, being named to the Fortune 500 is a prestigious accomplishment that enhances brand reputation and credibility. This recognition can be a powerful tool for attracting top talent, securing strategic partnerships, and opening doors to new business opportunities. It signals a level of scale and success that resonates with customers, employees, and investors alike, solidifying a company's position as a leader in its industry.

How Fortune 500 companies are investing in Vietnam

Vietnam has rapidly emerged as a critical hub for global investment, attracting significant attention from many Fortune 500 corporations. This trend is driven by a strategic push to diversify supply chains, often referred to as a "China+1" strategy, as well as Vietnam's stable political environment, competitive labor costs, and a burgeoning domestic consumer market. The Vietnamese government has actively encouraged this influx, aiming to attract stronger participation from Fortune Global 500 corporations by 2030.

As global enterprises strengthen their presence, Vietnam is also opening wide opportunities for new investors and entrepreneurs. Now is the perfect time to register a company in Vietnam and become part of this fast-growing economy.

Key areas of investment for Fortune 500 companies in Vietnam include:

• Manufacturing and supply chain diversification: Vietnam has become a manufacturing powerhouse for global tech and apparel giants. Apple has significantly expanded its presence, with suppliers like Foxconn and Compal Electronics moving production of MacBooks, iPads, and Apple Watches to the country. By 2025, it's projected that Vietnam will produce 65% of Apple's AirPods and 20% of its iPads and Apple Watches. Likewise, Nike has made Vietnam a primary production hub, with numerous contractor factories in the southern part of the country manufacturing a significant portion of its footwear and apparel.
• Technology and semiconductor industry: The high-tech sector has seen massive investment, positioning Vietnam as a key player in the semiconductor value chain. Intel has invested over $1.5 billion in its state-of-the-art chip assembly and test manufacturing facility in Ho Chi Minh City, which is its largest such facility in the world. The presence of tech leaders like Intel and Apple has created a vibrant ecosystem, attracting further investment from companies like Nvidia, Qualcomm, and Synopsys.
• Consumer goods and retail: A growing middle class and rising disposable income make Vietnam an attractive consumer market. Companies like Coca-Cola have been investing for decades, with three factories across the country and a recent investment of $136 million to build its largest plant yet in Long An province. This highlights a long-term commitment to serving the local market while also creating thousands of direct and indirect jobs.

Vietnamese companies are also increasingly prominent:

• 76 Vietnamese firms made the 2025 Fortune Southeast Asia 500 list, with Petrovietnam ranking 11th, the only Vietnamese representative in the top 20 by revenue.
• Viettel, Petrovietnam, Samsung Electronics Vietnam, and several major Vietnamese banks rank among the most profitable companies in Vietnam in 2025.
• Vietnamese tech firm VNG was honored for positive financial transformation and steady growth, winning regional awards for artificial intelligence excellence.

The Fortune 500 list remains a powerful and respected institution in the landscape of American business. It is the authoritative ranking of the largest U.S. corporations based on total revenue, offering a clear snapshot of the nation's most influential economic players. From its origins as a measure of industrial might to its modern form that embraces the service and technology sectors, the list has consistently evolved to reflect the dynamic nature of the U.S. economy.

Its distinction from other rankings like the Fortune Global 500 and S&P 500 lies in its unique focus on U.S. companies and its use of revenue as the primary metric. For over half a century, the Fortune 500 has not only chronicled the growth and transformation of corporate America but has also served as a vital indicator of economic health, a driver of investor perception, and the ultimate benchmark for corporate prestige and success. Its continued relevance ensures it will remain a cornerstone of business analysis for years to come.