Walmart Secures Top Spot on Fortune Global 500 for 10th Consecutive Year; Saudi Aramco Leads in Profits
US retail giant Walmart has once again claimed the number one spot on the prestigious Fortune Global 500 list for 2023. This marks the company’s 10th consecutive year at the top, and its 18th time holding the title since 1995. Walmart’s continued dominance is a testament to its unwavering success and influence in the global market.
The energy sector also made a strong showing on this year’s list, with Saudi Aramco, the world’s largest oil producer, securing second place. They benefited greatly from soaring energy prices driven by Russia’s invasion of Ukraine. This spike in prices also propelled Exxon Mobil and Shell back into the top ten by revenue. However, in terms of profits, Saudi Aramco outshined everyone, earning a staggering $159 billion, setting a new record for annual profits among Fortune Global 500 companies.
Notably, Big Tech continues to prove its resilience and profitability. Companies like Apple, Alphabet (the parent company of Google), and Microsoft collectively brought in $233 billion in net income. Apple, in particular, nearly reached $100 billion in profits, the highest ever recorded by a US company.
The 2023 Fortune Global 500 list welcomed 39 newcomers, including Warner Bros. Discovery and first-time Chinese companies like Contemporary Amperex Technology and Meituan. Meanwhile, several companies returned after a one-year hiatus, including Air Liquide from France and Ecopetrol from Colombia.
In terms of overall performance, Fortune Global 500 companies saw their revenues increase by 8% to a staggering $41 trillion, representing over one-third of the world’s GDP. However, cumulative profits were down 7% from the previous year, totaling $2.9 trillion. These companies employ a whopping 70.1 million people worldwide and are based in 232 cities across 33 countries and territories.
The representation of female CEOs has also shown improvement, with 29 women at the helm of Fortune Global 500 companies in 2023, compared to 24 the previous year. This positive trend reflects ongoing efforts to promote gender diversity and equality in corporate leadership.
Fortune’s Editor-in-Chief, Alyson Shontell, noted that this year’s list highlights the fact that even the biggest companies are susceptible to being disrupted and dethroned. Walmart, which has held the top spot for a decade, now faces stiff competition from Saudi Aramco. The Saudi government, which controls Aramco, is investing its profits in green tech R&D and various other industries, making it a formidable contender.
Shontell also highlighted the unique challenges faced by Alphabet, Google’s parent company, as it confronts the generative artificial intelligence (AI) revolution. While Alphabet has invested heavily in AI technology, this very innovation threatens their traditional search business, with Microsoft posing a significant threat through its partnership with ChatGPT creator OpenAI.
The Fortune Global 500 issue sheds light on the ever-changing landscape of business success, where established leaders face new contenders thanks to technological advancements and scientific breakthroughs. As we enter a new era of innovation-driven competition, only those companies that can adapt and embrace change will remain at the top of the corporate hierarchy.
The complete list of Fortune Global 500 companies can be found in the August/September issue of Fortune magazine and on their website.
