Walmart has once again secured the top spot on the Fortune Global 500 list for the 10th consecutive year. The retail giant’s consistent performance has made it the largest company by revenue in the world. This marks Walmart’s 18th time ranking first since 1995. The Fortune Global 500 list ranks the largest corporations globally based on their revenue for fiscal 2022.
The energy sector took a prominent role on this year’s ranking, with Saudi Aramco coming in at second place in terms of revenue. However, Saudi Aramco surpassed Walmart in terms of profits, earning a staggering $159 billion in 2022. This marks the highest annual profit ever recorded by a Fortune Global 500 company.
Big Tech companies also demonstrated their resilience and profitability. Apple, Alphabet (Google’s parent company), and Microsoft collectively generated $233 billion in net income. Apple alone earned nearly $100 billion in profits, setting a record for the highest profits ever generated by a U.S. company.
The 2023 Fortune Global 500 list welcomed several new companies, including Warner Bros. Discovery, Salesforce, Uber, Lufthansa, HD Hyundai, Daimler Truck, and Chinese companies Contemporary Amperex Technology and Meituan. Additionally, returning companies such as Colombia’s Ecopetrol and France’s Air Liquide made a comeback after a hiatus.
China led the pack with 142 companies on the list, followed by the United States with 136. However, the United States outperformed in terms of total revenue, with its companies generating $13 trillion compared to Greater China’s $11.7 trillion. Economic downturn, increased regulation, and the lingering effects of COVID-19 restrictions impacted the revenue of consumer-facing companies in mainland China, such as Alibaba, Tencent, and JD.com.
Overall, the Fortune Global 500 companies reported a combined revenue of $41 trillion, equivalent to more than one-third of the world’s GDP. However, cumulative profits decreased by 7% compared to the previous year, amounting to $2.9 trillion. These companies employ approximately 70.1 million people globally and are based in 232 cities spread across 33 countries and territories.
The number of female CEOs within the Fortune Global 500 also saw an increase, rising from 24 in 2022 to 29 this year. This progress highlights a positive shift toward gender diversity in corporate leadership.
Fortune’s Editor-in-Chief, Alyson Shontell, notes that this year’s list reflects the theme that even the largest companies can face upheaval and challenges. Walmart, with its long-standing dominance, must remain alert amidst competition. Saudi Aramco’s success can be attributed to the impact of the Ukraine conflict on energy prices and its ability to extract oil from substantial reserves. The Saudi government is diligently reinvesting its profits in green-tech research and development, as well as other industries.
The Fortune Global 500 issue delves into the evolving landscape of global corporations. Alphabet’s Google, for instance, faces the innovator’s dilemma as generative artificial intelligence (AI) threatens its profitable search business. Microsoft, with its partnership with ChatGPT creator OpenAI, poses a significant threat to Google’s market dominance.
According to Fortune’s List editor, Scott DeCarlo, the world’s largest companies displayed outstanding performance in 2022, achieving record-high revenues and profits. However, the Fortune Global 500 is far from static, as technological advancements and scientific breakthroughs can disrupt established leaders and propel emerging winners to the forefront.
Walmart’s decade-long reign atop the Fortune Global 500 has been impressive, but the company must remain vigilant amidst the ever-changing business landscape. The energy sector, including Saudi Aramco, showcased its strength, while Big Tech companies demonstrated their profitability. The global economy continues to evolve, and new players are making their mark on the Fortune Global 500 list.
